KB HOME (KBH) Fundamental Analysis & Valuation

NYSE:KBH • US48666K1097

Current stock price

51.91 USD
-0.21 (-0.4%)
At close:
52.24 USD
+0.33 (+0.64%)
After Hours:

This KBH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. KBH Profitability Analysis

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.
  • Of the past 5 years KBH 4 years had a positive operating cash flow.
KBH Yearly Net Income VS EBIT VS OCF VS FCFKBH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

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.
  • With a decent Return On Equity value of 10.92%, KBH is doing good in the industry, outperforming 61.67% of the companies in the same industry.
  • KBH's Return On Invested Capital of 7.19% is in line compared to the rest of the industry. KBH outperforms 58.33% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for KBH is in line with the industry average of 9.21%.
Industry RankSector 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%
KBH Yearly ROA, ROE, ROICKBH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • KBH's Profit Margin of 6.83% is fine compared to the rest of the industry. KBH outperforms 70.00% of its industry peers.
  • KBH's Profit Margin has been stable in the last couple of years.
  • 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 worse Gross Margin (18.88%) than 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 RankSector 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%
KBH Yearly Profit, Operating, Gross MarginsKBH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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5

2. KBH Health Analysis

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.
  • KBH has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, KBH has less shares outstanding
  • KBH has a worse debt/assets ratio than last year.
KBH Yearly Shares OutstandingKBH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
KBH Yearly Total Debt VS Total AssetsKBH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 3.59 indicates that KBH is not in any danger for bankruptcy at the moment.
  • KBH has a Altman-Z score (3.59) 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 has a Debt to FCF ratio of 5.89. This is comparable to the rest of the industry: KBH outperforms 55.00% 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.
  • With a Debt to Equity ratio value of 0.43, KBH is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 5.89
Altman-Z 3.59
ROIC/WACC0.78
WACC9.19%
KBH Yearly LT Debt VS Equity VS FCFKBH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

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.
  • A Quick Ratio of 0.57 indicates that KBH may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.57, KBH is doing worse than 76.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 6.01
Quick Ratio 0.57
KBH Yearly Current Assets VS Current LiabilitesKBH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. KBH Growth Analysis

3.1 Past

  • KBH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.32%.
  • Measured over the past years, KBH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.81% on average per year.
  • Looking at the last year, KBH shows a very negative growth in Revenue. The Revenue has decreased by -10.01% in the last year.
  • 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)-32.32%
EPS 3Y-10.68%
EPS 5Y15.81%
EPS Q2Q%-65.1%
Revenue 1Y (TTM)-10.01%
Revenue growth 3Y-3.33%
Revenue growth 5Y8.31%
Sales Q2Q%-22.62%

3.2 Future

  • The Earnings Per Share is expected to grow by 2.08% on average over the next years.
  • The Revenue is expected to decrease by -0.27% on average over the next years.
EPS Next Y-32.8%
EPS Next 2Y-7.96%
EPS Next 3Y2.08%
EPS Next 5YN/A
Revenue Next Year-11.02%
Revenue Next 2Y-2.89%
Revenue Next 3Y-0.27%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
KBH Yearly Revenue VS EstimatesKBH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
KBH Yearly EPS VS EstimatesKBH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8

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5

4. KBH Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.35 indicates a reasonable valuation of KBH.
  • KBH's Price/Earnings ratio is a bit cheaper when compared to the industry. KBH is cheaper than 76.67% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.23. KBH is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 9.40, the valuation of KBH can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of KBH indicates a somewhat cheap valuation: KBH is cheaper than 78.33% of the companies listed in the same industry.
  • KBH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.51.
Industry RankSector Rank
PE 9.35
Fwd PE 9.4
KBH Price Earnings VS Forward Price EarningsKBH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KBH is on the same level as its industry peers.
  • Based on the Price/Free Cash Flow ratio, KBH is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 11.26
EV/EBITDA 8.35
KBH Per share dataKBH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-7.96%
EPS Next 3Y2.08%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. KBH Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.93%, KBH has a reasonable but not impressive dividend return.
  • KBH's Dividend Yield is a higher than the industry average which is at 1.30.
  • KBH's Dividend Yield is comparable with the S&P500 average which is at 1.90.
Industry RankSector Rank
Dividend Yield 1.93%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)21.14%
Div Incr Years2
Div Non Decr Years11
KBH Yearly Dividends per shareKBH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

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-7.96%
EPS Next 3Y2.08%
KBH Yearly Income VS Free CF VS DividendKBH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B
KBH Dividend Payout.KBH Dividend Payout, showing the Payout Ratio.KBH Dividend Payout.PayoutRetained Earnings

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KBH Fundamentals: All Metrics, Ratios and Statistics

KB HOME

NYSE:KBH (3/26/2026, 8:04:00 PM)

After market: 52.24 +0.33 (+0.64%)

51.91

-0.21 (-0.4%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)03-24
Earnings (Next)06-22
Inst Owners98.49%
Inst Owner Change-6.73%
Ins Owners4.16%
Ins Owner Change5.43%
Market Cap3.24B
Revenue(TTM)6.24B
Net Income(TTM)426.11M
Analysts53.91
Price Target62.63 (20.65%)
Short Float %10.83%
Short Ratio5.99
Dividend
Industry RankSector Rank
Dividend Yield 1.93%
Yearly Dividend1.01
Dividend Growth(5Y)21.14%
DP16.09%
Div Incr Years2
Div Non Decr Years11
Ex-Date02-05
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%
PT rev (3m)-4.27%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-39.91%
EPS NY rev (1m)1.04%
EPS NY rev (3m)-28.74%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-4.73%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-3.45%
Valuation
Industry RankSector Rank
PE 9.35
Fwd PE 9.4
P/S 0.52
P/FCF 11.26
P/OCF 9.64
P/B 0.83
P/tB 0.83
EV/EBITDA 8.35
EPS(TTM)5.55
EY10.69%
EPS(NY)5.52
Fwd EY10.64%
FCF(TTM)4.61
FCFY8.88%
OCF(TTM)5.38
OCFY10.37%
SpS100.04
BVpS62.57
TBVpS62.57
PEG (NY)N/A
PEG (5Y)0.59
Graham Number88.4
Profitability
Industry RankSector 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 RankSector 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 3.59
F-Score3
WACC9.19%
ROIC/WACC0.78
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)-32.32%
EPS 3Y-10.68%
EPS 5Y15.81%
EPS Q2Q%-65.1%
EPS Next Y-32.8%
EPS Next 2Y-7.96%
EPS Next 3Y2.08%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.01%
Revenue growth 3Y-3.33%
Revenue growth 5Y8.31%
Sales Q2Q%-22.62%
Revenue Next Year-11.02%
Revenue Next 2Y-2.89%
Revenue Next 3Y-0.27%
Revenue Next 5YN/A
EBIT growth 1Y-33.14%
EBIT growth 3Y-20.74%
EBIT growth 5Y9.44%
EBIT Next Year-25.24%
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 Fundamental Analysis 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 -32.8% in the next year.