KB HOME (KBH) Stock Fundamental Analysis
NYSE:KBH - US48666K1097 - Common Stock
64.75 USD
+4.17 (+6.88%)
65.19 USD
+0.44 (+0.68%)
Overall KBH gets a fundamental rating of 5 out of 10. We evaluated KBH against 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KBH had positive earnings in the past year.
KBH had a positive operating cash flow in the past year.
Each year in the past 5 years KBH has been profitable.
Of the past 5 years KBH 4 years had a positive operating cash flow.
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.
KBH's Return On Equity of 14.07% is fine compared to the rest of the industry. KBH outperforms 65.08% of its industry peers.
With a decent Return On Invested Capital value of 8.98%, KBH is doing good in the industry, outperforming 61.90% of the companies in the same industry.
KBH had an Average Return On Invested Capital over the past 3 years of 11.76%. This is in line with the industry average of 10.39%.
| 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.
In the last couple of years the Profit Margin of KBH has grown nicely.
KBH has a Operating Margin of 10.39%. This is in the better half of the industry: KBH outperforms 61.90% of its industry peers.
KBH's Operating Margin has improved in the last couple of years.
KBH has a worse Gross Margin (20.58%) than 76.19% of its industry peers.
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.
The number of shares outstanding for KBH has been reduced compared to 1 year ago.
KBH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KBH has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.78 indicates that KBH is not in any danger for bankruptcy at the moment.
KBH has a Altman-Z score of 3.78. This is in the better half of the industry: KBH outperforms 63.49% of its industry peers.
KBH has a debt to FCF ratio of 29.32. This is a negative value and a sign of low solvency as KBH would need 29.32 years to pay back of all of its debts.
The Debt to FCF ratio of KBH (29.32) 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.
The Debt to Equity ratio of KBH (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 29.32 | ||
| Altman-Z | 3.78 |
ROIC/WACC1.07
WACC8.39%
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.
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.
With a Quick ratio value of 0.65, KBH is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
| 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 -0.13% in the last year.
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%.
The Revenue has been growing by 8.77% on average over the past years. This is quite good.
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
KBH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.30% yearly.
KBH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.43% yearly.
EPS Next Y-23.73%
EPS Next 2Y-12.48%
EPS Next 3Y-3.3%
EPS Next 5YN/A
Revenue Next Year-8.16%
Revenue Next 2Y-7.06%
Revenue Next 3Y-2.43%
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.
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 8.58.
79.37% of the companies in the same industry are more expensive than KBH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.24, KBH is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.98, 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 79.37% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.82. KBH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 9.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBH is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
KBH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.25 | ||
| EV/EBITDA | 8.2 |
4.3 Compensation for Growth
The decent profitability rating of KBH may justify a higher PE ratio.
A cheap valuation may be justified as KBH's earnings are expected to decrease with -3.30% in the coming years.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-12.48%
EPS Next 3Y-3.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.65%, KBH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.26, KBH pays a bit more dividend than its industry peers.
KBH's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
64.75
+4.17 (+6.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners106.68%
Inst Owner Change-2.23%
Ins Owners3.56%
Ins Owner Change7.25%
Market Cap4.41B
Analysts64.44
Price Target63.98 (-1.19%)
Short Float %8.4%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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)2.22%
PT rev (3m)-4.7%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-24.94%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-8.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 9.98 | ||
| P/S | 0.66 | ||
| P/FCF | 68.25 | ||
| P/OCF | 41.24 | ||
| P/B | 1.1 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 8.2 |
EPS(TTM)7.55
EY11.66%
EPS(NY)6.49
Fwd EY10.02%
FCF(TTM)0.95
FCFY1.47%
OCF(TTM)1.57
OCFY2.42%
SpS98.07
BVpS58.64
TBVpS58.64
PEG (NY)N/A
PEG (5Y)0.35
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 | 3.78 |
F-Score5
WACC8.39%
ROIC/WACC1.07
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-8.16%
Revenue Next 2Y-7.06%
Revenue Next 3Y-2.43%
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%