KB HOME (KBH) Stock Fundamental Analysis
USA - NYSE:KBH - US48666K1097 - Common Stock
66.37 USD
+1.01 (+1.55%)
Overall KBH gets a fundamental rating of 5 out of 10. We evaluated KBH against 63 industry peers in the Household Durables industry. KBH has only an average score on both its financial health and profitability. KBH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year KBH was profitable.
In the past year KBH had a positive cash flow from operations.
KBH had positive earnings in each of the past 5 years.
KBH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of KBH (8.00%) is better than 68.25% of its industry peers.
With a decent Return On Equity value of 14.07%, KBH is doing good in the industry, outperforming 65.08% of the companies in the same industry.
KBH has a Return On Invested Capital of 8.98%. This is in the better half of the industry: KBH outperforms 60.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KBH is in line with the industry average of 10.51%.
| 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
Looking at the Profit Margin, with a value of 8.41%, KBH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
KBH's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 10.39%, KBH is doing good in the industry, outperforming 60.32% of the companies in the same industry.
In the last couple of years the Operating Margin of KBH has grown nicely.
With a Gross Margin value of 20.58%, KBH is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
KBH's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KBH is creating some value.
Compared to 1 year ago, KBH has less shares outstanding
KBH has less shares outstanding than it did 5 years ago.
KBH has a better debt/assets ratio than last year.
2.2 Solvency
KBH has an Altman-Z score of 3.79. This indicates that KBH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.79, KBH is doing good in the industry, outperforming 63.49% of the companies in the same industry.
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 (29.32) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.47 indicates that KBH is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, KBH is doing worse than 60.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 29.32 | ||
| Altman-Z | 3.79 |
ROIC/WACC1.05
WACC8.57%
2.3 Liquidity
KBH has a Current Ratio of 6.09. This indicates that KBH is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 6.09, KBH belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that KBH may have some problems paying 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
KBH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.13%.
KBH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.25% yearly.
KBH shows a small growth in Revenue. In the last year, the Revenue has grown by 3.65%.
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)-0.13%
EPS 3Y11.99%
EPS 5Y24.25%
EPS Q2Q%-30.23%
Revenue 1Y (TTM)3.65%
Revenue growth 3Y6.58%
Revenue growth 5Y8.77%
Sales Q2Q%-10.54%
3.2 Future
The Earnings Per Share is expected to decrease by -3.30% on average over the next years.
Based on estimates for the next years, KBH will show a decrease in Revenue. The Revenue will decrease by -2.94% on average per year.
EPS Next Y-23.73%
EPS Next 2Y-12.48%
EPS Next 3Y-3.3%
EPS Next 5YN/A
Revenue Next Year-8.13%
Revenue Next 2Y-7.02%
Revenue Next 3Y-2.94%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
KBH is valuated reasonably with a Price/Earnings ratio of 8.79.
Based on the Price/Earnings ratio, KBH is valued a bit cheaper than 79.37% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, KBH is valued rather cheaply.
A Price/Forward Earnings ratio of 10.23 indicates a reasonable valuation of KBH.
KBH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KBH is cheaper than 77.78% of the companies in the same industry.
KBH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 10.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KBH indicates a somewhat cheap valuation: KBH is cheaper than 61.90% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as KBH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.96 | ||
| EV/EBITDA | 8.26 |
4.3 Compensation for Growth
KBH has a very decent profitability rating, which may justify a higher PE ratio.
KBH's earnings are expected to decrease with -3.30% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-12.48%
EPS Next 3Y-3.3%
5. Dividend
5.1 Amount
KBH has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
KBH's Dividend Yield is a higher than the industry average which is at 3.02.
KBH's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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-12.48%
EPS Next 3Y-3.3%
NYSE:KBH (9/17/2025, 10:07:56 AM)
66.37
+1.01 (+1.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners106.68%
Inst Owner Change-2.22%
Ins Owners3.56%
Ins Owner Change1.2%
Market Cap4.52B
Analysts64.44
Price Target64.91 (-2.2%)
Short Float %8.88%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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)2.79%
PT rev (3m)-3.31%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-22.56%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-8.97%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-12.64%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 10.23 | ||
| P/S | 0.68 | ||
| P/FCF | 69.96 | ||
| P/OCF | 42.27 | ||
| P/B | 1.13 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 8.26 |
EPS(TTM)7.55
EY11.38%
EPS(NY)6.49
Fwd EY9.78%
FCF(TTM)0.95
FCFY1.43%
OCF(TTM)1.57
OCFY2.37%
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 | 3.79 |
F-Score5
WACC8.57%
ROIC/WACC1.05
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)-0.13%
EPS 3Y11.99%
EPS 5Y24.25%
EPS Q2Q%-30.23%
EPS Next Y-23.73%
EPS Next 2Y-12.48%
EPS Next 3Y-3.3%
EPS Next 5YN/A
Revenue 1Y (TTM)3.65%
Revenue growth 3Y6.58%
Revenue growth 5Y8.77%
Sales Q2Q%-10.54%
Revenue Next Year-8.13%
Revenue Next 2Y-7.02%
Revenue Next 3Y-2.94%
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-2.51%
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%