How does KB HOME (NYSE:KBH) stack up against Peter Lynch’s investment principles?

Known for his philosophy of investing in what you know, Peter Lynch looked for companies with consistent earnings growth, low debt, and a competitive edge. Does KB HOME (NYSE:KBH) meet these key criteria? Let’s find out.

Would Peter Lynch consider KB HOME (NYSE:KBH) a winning stock?

• KBH has a healthy Return on Equity(ROE) of 16.01%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• With a Debt/Equity ratio of 0.42, KBH demonstrates prudent financial management.
• KBH has experienced 24.25 growth in EPS over a 5-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• KBH boasts a PEG ratio of 0.3, indicating a reasonable valuation relative to its earnings growth.
• With a Current Ratio of 5.74, KBH shows a stable financial footing with enough assets to cover short-term debts.

What else is there to say on the fundamentals of KBH?

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, KBH scores 6 out of 10 in our fundamental rating. KBH was compared to 65 industry peers in the Household Durables industry. KBH has an average financial health and profitability rating. KBH is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make KBH suitable for value investing!

For an up to date full fundamental analysis you can check the fundamental report of KBH

Every day, new Affordable Growth stocks can be found on ChartMill in our Peter Lynch screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.