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

Peter Lynch’s approach focused on identifying undervalued growth stocks with simple, scalable businesses. We examine whether KB HOME (NYSE:KBH) fits the characteristics of a Lynch-approved investment.

Checking the Peter Lynch growth stock criteria for KB HOME (NYSE:KBH)

• KBH has achieved an impressive Return on Equity (ROE) of 15.18%, showcasing its ability to generate favorable returns for shareholders.
• With a Debt/Equity ratio of 0.44, KBH appears to have a manageable debt load relative to its assets.
• The EPS of KBH has shown consistent growth over a 5-year period, indicating the company's ability to generate increasing earnings over time.
• KBH boasts a PEG ratio of 0.27, indicating a reasonable valuation relative to its earnings growth.
• A Current Ratio of 5.99 indicates that KBH has a comfortable liquidity buffer.

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

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

KBH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. KBH has a medium profitability rating, but doesn't score so well on its financial health evaluation. KBH is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of KBH contains the most current fundamental analsysis.

More Affordable Growth stocks can be found in our Peter Lynch screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.