KB HOME (KBH) Stock Fundamental Analysis
NYSE:KBH • US48666K1097
65.3 USD
+0.49 (+0.76%)
At close: Feb 20, 2026
65.3 USD
0 (0%)
After Hours: 2/20/2026, 8:04:00 PM
Taking everything into account, KBH scores 5 out of 10 in our fundamental rating. KBH was compared to 60 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
- KBH's Return On Assets of 6.38% is fine compared to the rest of the industry. KBH outperforms 70.00% of its industry peers.
- The Return On Equity of KBH (10.92%) is better than 63.33% of its industry peers.
- With a Return On Invested Capital value of 7.19%, KBH perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
- KBH had an Average Return On Invested Capital over the past 3 years of 9.33%. This is in line with the industry average of 9.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 10.92% | ||
| ROIC | 7.19% |
ROA(3y)8.19%
ROA(5y)9.28%
ROE(3y)14.1%
ROE(5y)16.62%
ROIC(3y)9.33%
ROIC(5y)10.73%
1.3 Margins
- With a decent Profit Margin value of 6.83%, KBH is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of KBH has remained more or less at the same level.
- KBH has a better Operating Margin (8.42%) than 63.33% of its industry peers.
- KBH's Operating Margin has been stable in the last couple of years.
- KBH has a Gross Margin of 18.88%. This is in the lower half of the industry: KBH underperforms 75.00% of its industry peers.
- In the last couple of years the Gross Margin of KBH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.42% | ||
| PM (TTM) | 6.83% | ||
| GM | 18.88% |
OM growth 3Y-18.01%
OM growth 5Y1.04%
PM growth 3Y-16.58%
PM growth 5Y-0.61%
GM growth 3Y-8.3%
GM growth 5Y-0.32%
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 is higher compared to a year ago.
2.2 Solvency
- KBH has an Altman-Z score of 3.78. This indicates that KBH is financially healthy and has little risk of bankruptcy at the moment.
- KBH has a Altman-Z score (3.78) which is comparable to the rest of the industry.
- The Debt to FCF ratio of KBH is 5.89, which is a neutral value as it means it would take KBH, 5.89 years of fcf income to pay off all of its debts.
- KBH's Debt to FCF ratio of 5.89 is in line compared to the rest of the industry. KBH outperforms 50.00% of its industry peers.
- KBH has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of KBH (0.43) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 3.78 |
ROIC/WACC0.8
WACC8.97%
2.3 Liquidity
- A Current Ratio of 6.01 indicates that KBH has no problem at all paying its short term obligations.
- With a decent Current ratio value of 6.01, KBH is doing good in the industry, outperforming 76.67% of the companies in the same industry.
- KBH has a Quick Ratio of 6.01. This is a bad value and indicates that KBH is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of KBH (0.57) is worse than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.01 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
- The earnings per share for KBH have decreased strongly by -23.02% in the last year.
- KBH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.81% yearly.
- KBH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.01%.
- Measured over the past years, KBH shows a quite strong growth in Revenue. The Revenue has been growing by 8.31% on average per year.
EPS 1Y (TTM)-23.02%
EPS 3Y-10.68%
EPS 5Y15.81%
EPS Q2Q%-23.81%
Revenue 1Y (TTM)-10.01%
Revenue growth 3Y-3.33%
Revenue growth 5Y8.31%
Sales Q2Q%-15.28%
3.2 Future
- KBH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.08% yearly.
- KBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.44% yearly.
EPS Next Y-33.49%
EPS Next 2Y-7.66%
EPS Next 3Y2.08%
EPS Next 5YN/A
Revenue Next Year-10.8%
Revenue Next 2Y-2.62%
Revenue Next 3Y0.44%
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
- Based on the Price/Earnings ratio of 10.02, the valuation of KBH can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of KBH indicates a rather cheap valuation: KBH is cheaper than 83.33% of the companies listed in the same industry.
- KBH is valuated cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 15.06, KBH is valued correctly.
- KBH's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 28.02. KBH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 15.06 |
4.2 Price Multiples
- KBH's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, KBH is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.36 | ||
| EV/EBITDA | 9.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.63
EPS Next 2Y-7.66%
EPS Next 3Y2.08%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.54%, KBH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.16, KBH pays a bit more dividend than its industry peers.
- KBH's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
- The dividend of KBH is nicely growing with an annual growth rate of 21.14%!
- KBH has been paying a dividend for at least 10 years, so it has a reliable track record.
- KBH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)21.14%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
- 16.09% of the earnings are spent on dividend by KBH. This is a low number and sustainable payout ratio.
- KBH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.09%
EPS Next 2Y-7.66%
EPS Next 3Y2.08%
65.3
+0.49 (+0.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)01-14 2026-01-14/amc
Earnings (Next)03-23 2026-03-23/amc
Inst Owners105.02%
Inst Owner Change-6.78%
Ins Owners3.71%
Ins Owner Change-0.91%
Market Cap4.13B
Revenue(TTM)6.24B
Net Income(TTM)426.11M
Analysts53.91
Price Target62.58 (-4.17%)
Short Float %9.63%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend1.01
Dividend Growth(5Y)21.14%
DP16.09%
Div Incr Years2
Div Non Decr Years11
Ex-Date02-05 2026-02-05 (0.25)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.16%
Min EPS beat(2)5.85%
Max EPS beat(2)6.46%
EPS beat(4)3
Avg EPS beat(4)1.79%
Min EPS beat(4)-6.73%
Max EPS beat(4)6.46%
EPS beat(8)6
Avg EPS beat(8)4.55%
EPS beat(12)10
Avg EPS beat(12)11.6%
EPS beat(16)12
Avg EPS beat(16)8.67%
Revenue beat(2)2
Avg Revenue beat(2)1.09%
Min Revenue beat(2)1.03%
Max Revenue beat(2)1.16%
Revenue beat(4)3
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-8.07%
Max Revenue beat(4)1.16%
Revenue beat(8)5
Avg Revenue beat(8)-0.38%
Revenue beat(12)9
Avg Revenue beat(12)2.73%
Revenue beat(16)10
Avg Revenue beat(16)1.48%
PT rev (1m)0.68%
PT rev (3m)-6.47%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-40.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.47%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-4.64%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 15.06 | ||
| P/S | 0.66 | ||
| P/FCF | 14.36 | ||
| P/OCF | 12.29 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 9.93 |
EPS(TTM)6.52
EY9.98%
EPS(NY)4.34
Fwd EY6.64%
FCF(TTM)4.55
FCFY6.96%
OCF(TTM)5.31
OCFY8.14%
SpS98.72
BVpS61.75
TBVpS61.75
PEG (NY)N/A
PEG (5Y)0.63
Graham Number95.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 10.92% | ||
| ROCE | 9.32% | ||
| ROIC | 7.19% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 7.58% | ||
| OM | 8.42% | ||
| PM (TTM) | 6.83% | ||
| GM | 18.88% | ||
| FCFM | 4.61% |
ROA(3y)8.19%
ROA(5y)9.28%
ROE(3y)14.1%
ROE(5y)16.62%
ROIC(3y)9.33%
ROIC(5y)10.73%
ROICexc(3y)10.35%
ROICexc(5y)11.67%
ROICexgc(3y)10.48%
ROICexgc(5y)11.82%
ROCE(3y)12.08%
ROCE(5y)13.9%
ROICexgc growth 3Y-21.72%
ROICexgc growth 5Y1.62%
ROICexc growth 3Y-21.71%
ROICexc growth 5Y1.81%
OM growth 3Y-18.01%
OM growth 5Y1.04%
PM growth 3Y-16.58%
PM growth 5Y-0.61%
GM growth 3Y-8.3%
GM growth 5Y-0.32%
F-Score3
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 5.89 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 129.75% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.67% | ||
| Profit Quality | 67.42% | ||
| Current Ratio | 6.01 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 3.78 |
F-Score3
WACC8.97%
ROIC/WACC0.8
Cap/Depr(3y)110.88%
Cap/Depr(5y)122.03%
Cap/Sales(3y)0.63%
Cap/Sales(5y)0.65%
Profit Quality(3y)98.63%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.02%
EPS 3Y-10.68%
EPS 5Y15.81%
EPS Q2Q%-23.81%
EPS Next Y-33.49%
EPS Next 2Y-7.66%
EPS Next 3Y2.08%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.01%
Revenue growth 3Y-3.33%
Revenue growth 5Y8.31%
Sales Q2Q%-15.28%
Revenue Next Year-10.8%
Revenue Next 2Y-2.62%
Revenue Next 3Y0.44%
Revenue Next 5YN/A
EBIT growth 1Y-33.14%
EBIT growth 3Y-20.74%
EBIT growth 5Y9.44%
EBIT Next Year-25.33%
EBIT Next 3Y-0.8%
EBIT Next 5YN/A
FCF growth 1Y-11.17%
FCF growth 3Y27.63%
FCF growth 5Y0.38%
OCF growth 1Y-7.45%
OCF growth 3Y22.32%
OCF growth 5Y1.56%
KB HOME / KBH FAQ
What is the ChartMill fundamental rating of KB HOME (KBH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to KBH.
What is the valuation status for KBH stock?
ChartMill assigns a valuation rating of 5 / 10 to KB HOME (KBH). This can be considered as Fairly Valued.
How profitable is KB HOME (KBH) stock?
KB HOME (KBH) has a profitability rating of 5 / 10.
How financially healthy is KB HOME?
The financial health rating of KB HOME (KBH) is 5 / 10.
Can you provide the expected EPS growth for KBH stock?
The Earnings per Share (EPS) of KB HOME (KBH) is expected to decline by -33.49% in the next year.