KB HOME (KBH) Stock Fundamental Analysis
USA - NYSE:KBH - US48666K1097 - Common Stock
61.91 USD
+0.59 (+0.96%)
61.9 USD
-0.01 (-0.02%)
We assign a fundamental rating of 5 out of 10 to KBH. KBH was compared to 63 industry peers in the Household Durables industry. Both the profitability and the financial health of KBH get a neutral evaluation. Nothing too spectacular is happening here. KBH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KBH had positive earnings in the past year.
In the past year KBH had a positive cash flow from operations.
In the past 5 years KBH has always been profitable.
KBH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.00%, KBH is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
The Return On Equity of KBH (14.07%) is better than 65.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.98%, KBH is in the better half of the industry, outperforming 60.32% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KBH is in line with the industry average of 10.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 14.07% | ||
| ROIC | 8.98% |
ROA(3y)10.13%
ROA(5y)9.11%
ROE(3y)17.86%
ROE(5y)16.65%
ROIC(3y)11.76%
ROIC(5y)10.39%
1.3 Margins
KBH has a Profit Margin of 8.41%. This is in the better half of the industry: KBH outperforms 68.25% of its industry peers.
KBH's Profit Margin has improved in the last couple of years.
The Operating Margin of KBH (10.39%) is better than 65.08% of its industry peers.
KBH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 20.58%, KBH is doing worse than 76.19% of the companies in the same industry.
In the last couple of years the Gross Margin of KBH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.39% | ||
| PM (TTM) | 8.41% | ||
| GM | 20.58% |
OM growth 3Y-1.36%
OM growth 5Y8.57%
PM growth 3Y-1.51%
PM growth 5Y9.84%
GM growth 3Y-0.91%
GM growth 5Y2.86%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KBH is still creating some value.
Compared to 1 year ago, KBH has less shares outstanding
The number of shares outstanding for KBH has been reduced compared to 5 years ago.
The debt/assets ratio for KBH has been reduced compared to a year ago.
2.2 Solvency
KBH has an Altman-Z score of 3.74. This indicates that KBH is financially healthy and has little risk of bankruptcy at the moment.
KBH's Altman-Z score of 3.74 is in line compared to the rest of the industry. KBH outperforms 58.73% of its industry peers.
The Debt to FCF ratio of KBH is 29.32, which is on the high side as it means it would take KBH, 29.32 years of fcf income to pay off all of its debts.
KBH has a Debt to FCF ratio of 29.32. This is in the lower half of the industry: KBH underperforms 60.32% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that KBH is not too dependend on debt financing.
KBH has a Debt to Equity ratio of 0.47. This is in the lower half of the industry: KBH underperforms 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 29.32 | ||
| Altman-Z | 3.74 |
ROIC/WACC1.03
WACC8.69%
2.3 Liquidity
A Current Ratio of 6.09 indicates that KBH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 6.09, KBH belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
KBH has a Quick Ratio of 6.09. This is a bad value and indicates that KBH is not financially healthy enough and could expect problems in meeting its short term obligations.
KBH has a Quick ratio of 0.65. This is in the lower half of the industry: KBH underperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.09 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for KBH have decreased by -8.72% in the last year.
Measured over the past years, KBH shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.25% on average per year.
The Revenue has grown by 8.10% in the past year. This is quite good.
Measured over the past years, KBH shows a quite strong growth in Revenue. The Revenue has been growing by 8.77% on average per year.
EPS 1Y (TTM)-8.72%
EPS 3Y11.99%
EPS 5Y24.25%
EPS Q2Q%-21.08%
Revenue 1Y (TTM)8.1%
Revenue growth 3Y6.58%
Revenue growth 5Y8.77%
Sales Q2Q%-7.54%
3.2 Future
Based on estimates for the next years, KBH will show a decrease in Earnings Per Share. The EPS will decrease by -4.40% on average per year.
KBH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.31% yearly.
EPS Next Y-23.67%
EPS Next 2Y-12.58%
EPS Next 3Y-4.4%
EPS Next 5YN/A
Revenue Next Year-10.11%
Revenue Next 2Y-9.2%
Revenue Next 3Y-4.31%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KBH is valuated reasonably with a Price/Earnings ratio of 8.70.
Based on the Price/Earnings ratio, KBH is valued a bit cheaper than the industry average as 73.02% of the companies are valued more expensively.
KBH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.40.
With a Price/Forward Earnings ratio of 9.56, the valuation of KBH can be described as very reasonable.
KBH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KBH is cheaper than 73.02% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, KBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
KBH's Enterprise Value to EBITDA ratio is in line with the industry average.
KBH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.26 | ||
| EV/EBITDA | 7.88 |
4.3 Compensation for Growth
KBH has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as KBH's earnings are expected to decrease with -4.40% in the coming years.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-12.58%
EPS Next 3Y-4.4%
5. Dividend
5.1 Amount
KBH has a Yearly Dividend Yield of 1.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.93, KBH pays a bit more dividend than its industry peers.
KBH's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of KBH is nicely growing with an annual growth rate of 34.29%!
KBH has paid a dividend for at least 10 years, which is a reliable track record.
KBH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)34.29%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
KBH pays out 12.99% of its income as dividend. This is a sustainable payout ratio.
DP12.99%
EPS Next 2Y-12.58%
EPS Next 3Y-4.4%
61.91
+0.59 (+0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners101.21%
Inst Owner Change0.35%
Ins Owners3.56%
Ins Owner Change1.2%
Market Cap4.21B
Analysts65.26
Price Target68.25 (10.24%)
Short Float %8.52%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend0.92
Dividend Growth(5Y)34.29%
DP12.99%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.58%
Min EPS beat(2)-6.73%
Max EPS beat(2)1.56%
EPS beat(4)2
Avg EPS beat(4)-1.23%
Min EPS beat(4)-6.73%
Max EPS beat(4)1.99%
EPS beat(8)6
Avg EPS beat(8)7.13%
EPS beat(12)9
Avg EPS beat(12)9.97%
EPS beat(16)11
Avg EPS beat(16)8.21%
Revenue beat(2)1
Avg Revenue beat(2)-3.75%
Min Revenue beat(2)-8.07%
Max Revenue beat(2)0.56%
Revenue beat(4)2
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-8.07%
Max Revenue beat(4)0.56%
Revenue beat(8)5
Avg Revenue beat(8)0.38%
Revenue beat(12)7
Avg Revenue beat(12)2.09%
Revenue beat(16)8
Avg Revenue beat(16)0.71%
PT rev (1m)6.67%
PT rev (3m)1.94%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-0.46%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 9.56 | ||
| P/S | 0.63 | ||
| P/FCF | 65.26 | ||
| P/OCF | 39.43 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 7.88 |
EPS(TTM)7.12
EY11.5%
EPS(NY)6.47
Fwd EY10.46%
FCF(TTM)0.95
FCFY1.53%
OCF(TTM)1.57
OCFY2.54%
SpS98.07
BVpS58.64
TBVpS58.64
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 14.07% | ||
| ROCE | 11.7% | ||
| ROIC | 8.98% | ||
| ROICexc | 9.47% | ||
| ROICexgc | 9.56% | ||
| OM | 10.39% | ||
| PM (TTM) | 8.41% | ||
| GM | 20.58% | ||
| FCFM | 0.97% |
ROA(3y)10.13%
ROA(5y)9.11%
ROE(3y)17.86%
ROE(5y)16.65%
ROIC(3y)11.76%
ROIC(5y)10.39%
ROICexc(3y)12.99%
ROICexc(5y)11.48%
ROICexgc(3y)13.14%
ROICexgc(5y)11.64%
ROCE(3y)15.32%
ROCE(5y)13.54%
ROICexcg growth 3Y-0.18%
ROICexcg growth 5Y10.13%
ROICexc growth 3Y-0.09%
ROICexc growth 5Y10.42%
OM growth 3Y-1.36%
OM growth 5Y8.57%
PM growth 3Y-1.51%
PM growth 5Y9.84%
GM growth 3Y-0.91%
GM growth 5Y2.86%
F-Score5
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 29.32 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 115.98% | ||
| Cap/Sales | 0.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 14.63% | ||
| Profit Quality | 11.5% | ||
| Current Ratio | 6.09 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.74 |
F-Score5
WACC8.69%
ROIC/WACC1.03
Cap/Depr(3y)114.28%
Cap/Depr(5y)116.39%
Cap/Sales(3y)0.59%
Cap/Sales(5y)0.63%
Profit Quality(3y)81.83%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.72%
EPS 3Y11.99%
EPS 5Y24.25%
EPS Q2Q%-21.08%
EPS Next Y-23.67%
EPS Next 2Y-12.58%
EPS Next 3Y-4.4%
EPS Next 5YN/A
Revenue 1Y (TTM)8.1%
Revenue growth 3Y6.58%
Revenue growth 5Y8.77%
Sales Q2Q%-7.54%
Revenue Next Year-10.11%
Revenue Next 2Y-9.2%
Revenue Next 3Y-4.31%
Revenue Next 5YN/A
EBIT growth 1Y-5.07%
EBIT growth 3Y5.13%
EBIT growth 5Y18.09%
EBIT Next Year-9.54%
EBIT Next 3Y-3.8%
EBIT Next 5YN/A
FCF growth 1Y-93.94%
FCF growth 3YN/A
FCF growth 5Y8.96%
OCF growth 1Y-90.35%
OCF growth 3YN/A
OCF growth 5Y7.64%