KB HOME (KBH) Fundamental Analysis & Valuation
NYSE:KBH • US48666K1097
Current stock price
55.27 USD
-0.87 (-1.55%)
At close:
55.27 USD
0 (0%)
After Hours:
This KBH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. KBH Profitability Analysis
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.
- Of the past 5 years KBH 4 years had a positive operating cash flow.
1.2 Ratios
- KBH has a Return On Assets of 6.38%. This is in the better half 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.
- KBH's Return On Invested Capital of 7.19% is in line compared to the rest of the industry. KBH outperforms 60.00% of its industry peers.
- 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 9.06%.
| 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
- KBH has a better Profit Margin (6.83%) than 70.00% of its industry peers.
- KBH's Profit Margin has been stable in the last couple of years.
- KBH has a Operating Margin of 8.42%. This is in the better half of the industry: KBH outperforms 65.00% of its industry peers.
- KBH's Operating Margin has been stable in the last couple of years.
- KBH's Gross Margin of 18.88% is on the low side compared to the rest of the industry. KBH is outperformed by 73.33% 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. KBH Health Analysis
2.1 Basic Checks
- KBH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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.
- KBH has a worse debt/assets ratio than last year.
2.2 Solvency
- KBH has an Altman-Z score of 3.65. This indicates that KBH is financially healthy and has little risk of bankruptcy at the moment.
- KBH has a Altman-Z score (3.65) which is in line with its industry peers.
- 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 (5.89) which is in line with 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 3.65 |
ROIC/WACC0.77
WACC9.39%
2.3 Liquidity
- A Current Ratio of 6.01 indicates that KBH has no problem at all paying its short term obligations.
- KBH has a Current ratio of 6.01. This is in the better half of the industry: KBH outperforms 76.67% of its industry peers.
- 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.
- With a Quick ratio value of 0.57, KBH is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.01 | ||
| Quick Ratio | 0.57 |
3. KBH Growth Analysis
3.1 Past
- The earnings per share for KBH have decreased strongly by -31.83% 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.
- Looking at the last year, KBH shows a very negative growth in Revenue. The Revenue has decreased by -10.01% in the last year.
- KBH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.31% yearly.
EPS 1Y (TTM)-31.83%
EPS 3Y-10.68%
EPS 5Y15.81%
EPS Q2Q%-62.42%
Revenue 1Y (TTM)-10.01%
Revenue growth 3Y-3.33%
Revenue growth 5Y8.31%
Sales Q2Q%-22.62%
3.2 Future
- Based on estimates for the next years, KBH will show a decrease in Earnings Per Share. The EPS will decrease by -1.69% on average per year.
- The Revenue is expected to decrease by -1.70% on average over the next years.
EPS Next Y-48%
EPS Next 2Y-15.3%
EPS Next 3Y-1.69%
EPS Next 5YN/A
Revenue Next Year-17.96%
Revenue Next 2Y-5.33%
Revenue Next 3Y-1.7%
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. KBH Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.89, 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 81.67% of the companies listed in the same industry.
- KBH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
- Based on the Price/Forward Earnings ratio of 11.82, the valuation of KBH can be described as reasonable.
- Based on the Price/Forward Earnings ratio, KBH is valued a bit cheaper than the industry average as 61.67% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, KBH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 11.82 |
4.2 Price Multiples
- KBH's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, KBH is valued a bit cheaper than the industry average as 71.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.04 | ||
| EV/EBITDA | 8.85 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.63
EPS Next 2Y-15.3%
EPS Next 3Y-1.69%
5. KBH Dividend Analysis
5.1 Amount
- KBH has a Yearly Dividend Yield of 1.93%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.29, KBH pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, KBH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
- On average, the dividend of KBH grows each year by 21.14%, which is quite nice.
- 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)21.14%
Div Incr Years3
Div Non Decr Years12
5.3 Sustainability
- 16.09% of the earnings are spent on dividend by KBH. This is a low number and sustainable payout ratio.
DP16.09%
EPS Next 2Y-15.3%
EPS Next 3Y-1.69%
KBH Fundamentals: All Metrics, Ratios and Statistics
55.27
-0.87 (-1.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)03-24 2026-03-24/amc
Earnings (Next)06-22 2026-06-22/amc
Inst Owners98.57%
Inst Owner Change-0.26%
Ins Owners4.2%
Ins Owner Change5.43%
Market Cap3.46B
Revenue(TTM)6.24B
Net Income(TTM)426.11M
Analysts63.64
Price Target57.14 (3.38%)
Short Float %10.83%
Short Ratio5.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend1.01
Dividend Growth(5Y)21.14%
DP16.09%
Div Incr Years3
Div Non Decr Years12
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)-8.7%
PT rev (3m)-8.07%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)-22.61%
EPS NY rev (3m)-34.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-7.79%
Revenue NY rev (3m)-7.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 11.82 | ||
| P/S | 0.55 | ||
| P/FCF | 12.04 | ||
| P/OCF | 10.31 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 8.85 |
EPS(TTM)5.59
EY10.11%
EPS(NY)4.68
Fwd EY8.46%
FCF(TTM)4.59
FCFY8.3%
OCF(TTM)5.36
OCFY9.7%
SpS99.62
BVpS62.31
TBVpS62.31
PEG (NY)N/A
PEG (5Y)0.63
Graham Number88.5299 (60.18%)
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 | 3.65 |
F-Score3
WACC9.39%
ROIC/WACC0.77
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)-31.83%
EPS 3Y-10.68%
EPS 5Y15.81%
EPS Q2Q%-62.42%
EPS Next Y-48%
EPS Next 2Y-15.3%
EPS Next 3Y-1.69%
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-17.96%
Revenue Next 2Y-5.33%
Revenue Next 3Y-1.7%
Revenue Next 5YN/A
EBIT growth 1Y-33.14%
EBIT growth 3Y-20.74%
EBIT growth 5Y9.44%
EBIT Next Year-33.16%
EBIT Next 3Y0.55%
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 4 / 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.
Can you provide the profitability details for KB HOME?
KB HOME (KBH) has a profitability rating of 5 / 10.
What are the PE and PB ratios of KB HOME (KBH) stock?
The Price/Earnings (PE) ratio for KB HOME (KBH) is 9.89 and the Price/Book (PB) ratio is 0.89.
What is the earnings growth outlook for KB HOME?
The Earnings per Share (EPS) of KB HOME (KBH) is expected to decline by -48% in the next year.