KB HOME (KBH) Stock Fundamental Analysis
NYSE:KBH - New York Stock Exchange, Inc. - US48666K1097 - Common Stock - Currency: USD
Overall KBH gets a fundamental rating of 6 out of 10. We evaluated KBH against 64 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! With these ratings, KBH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year KBH was profitable.
KBH had a positive operating cash flow in the past year.
In the past 5 years KBH has always been profitable.
KBH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of KBH (9.37%) is better than 68.75% of its industry peers.
With a decent Return On Equity value of 16.01%, KBH is doing good in the industry, outperforming 70.31% of the companies in the same industry.
KBH's Return On Invested Capital of 10.40% is fine compared to the rest of the industry. KBH outperforms 67.19% 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 12.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.37% | ||
| ROE | 16.01% | ||
| ROIC | 10.4% |
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
Looking at the Profit Margin, with a value of 9.38%, KBH is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
In the last couple of years the Profit Margin of KBH has grown nicely.
KBH's Operating Margin of 11.34% is fine compared to the rest of the industry. KBH outperforms 67.19% of its industry peers.
KBH's Operating Margin has improved in the last couple of years.
KBH has a worse Gross Margin (21.34%) than 71.88% of its industry peers.
In the last couple of years the Gross Margin of KBH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.34% | ||
| PM (TTM) | 9.38% | ||
| GM | 21.34% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KBH is still creating some value.
The number of shares outstanding for KBH has been reduced compared to 1 year ago.
Compared to 5 years ago, KBH has less shares outstanding
The debt/assets ratio for KBH has been reduced compared to a year ago.
2.2 Solvency
KBH has an Altman-Z score of 3.74. This indicates that KBH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.74, KBH is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
KBH has a debt to FCF ratio of 5.23. This is a neutral value as KBH would need 5.23 years to pay back of all of its debts.
KBH has a Debt to FCF ratio (5.23) which is in line with its industry peers.
A Debt/Equity ratio of 0.42 indicates that KBH is not too dependend on debt financing.
KBH has a Debt to Equity ratio of 0.42. This is in the lower half of the industry: KBH underperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.23 | ||
| Altman-Z | 3.74 |
ROIC/WACC1.26
WACC8.23%
2.3 Liquidity
A Current Ratio of 5.74 indicates that KBH has no problem at all paying its short term obligations.
KBH's Current ratio of 5.74 is fine compared to the rest of the industry. KBH outperforms 78.13% of its industry peers.
KBH has a Quick Ratio of 5.74. This is a bad value and indicates that KBH is not financially healthy enough and could expect problems in meeting its short term obligations.
KBH has a Quick ratio of 0.87. This is comparable to the rest of the industry: KBH outperforms 42.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.74 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
KBH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.56%, which is quite good.
KBH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.25% yearly.
The Revenue has grown by 8.10% in the past year. This is quite good.
The Revenue has been growing by 8.77% on average over the past years. This is quite good.
EPS 1Y (TTM)11.56%
EPS 3Y11.99%
EPS 5Y24.25%
EPS Q2Q%-15.34%
Revenue 1Y (TTM)8.1%
Revenue growth 3Y6.58%
Revenue growth 5Y8.77%
Sales Q2Q%-5.18%
3.2 Future
KBH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.17% yearly.
The Revenue is expected to grow by 0.89% on average over the next years.
EPS Next Y-8.98%
EPS Next 2Y-1.57%
EPS Next 3Y1.17%
EPS Next 5YN/A
Revenue Next Year-3.61%
Revenue Next 2Y-2.43%
Revenue Next 3Y0.89%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.30 indicates a rather cheap valuation of KBH.
Compared to the rest of the industry, the Price/Earnings ratio of KBH indicates a rather cheap valuation: KBH is cheaper than 81.25% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KBH to the average of the S&P500 Index (28.29), we can say KBH is valued rather cheaply.
The Price/Forward Earnings ratio is 6.30, which indicates a rather cheap valuation of KBH.
KBH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KBH is cheaper than 79.69% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, KBH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 6.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBH is valued a bit cheaper than 70.31% of the companies in the same industry.
KBH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KBH is cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.46 | ||
| EV/EBITDA | 5.83 |
4.3 Compensation for Growth
KBH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-1.57%
EPS Next 3Y1.17%
5. Dividend
5.1 Amount
KBH has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of KBH has falen by -23.89%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.80, KBH pays a bit more dividend than its industry peers.
KBH's Dividend Yield is slightly below the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)34.29%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
KBH pays out 11.01% of its income as dividend. This is a sustainable payout ratio.
KBH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.01%
EPS Next 2Y-1.57%
EPS Next 3Y1.17%
51.67
+1.52 (+3.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners106.29%
Inst Owner Change0%
Ins Owners3.05%
Ins Owner Change5.49%
Market Cap3.71B
Analysts65
Price Target68.85 (33.25%)
Short Float %7.38%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend0.92
Dividend Growth(5Y)34.29%
DP11.01%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.13%
Min EPS beat(2)-1.73%
Max EPS beat(2)1.99%
EPS beat(4)3
Avg EPS beat(4)7.32%
Min EPS beat(4)-1.73%
Max EPS beat(4)18.2%
EPS beat(8)7
Avg EPS beat(8)16.5%
EPS beat(12)9
Avg EPS beat(12)10.97%
EPS beat(16)12
Avg EPS beat(16)9.94%
Revenue beat(2)1
Avg Revenue beat(2)0.04%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)0.44%
Revenue beat(4)2
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)2.51%
Revenue beat(8)6
Avg Revenue beat(8)4.76%
Revenue beat(12)7
Avg Revenue beat(12)2.42%
Revenue beat(16)7
Avg Revenue beat(16)0.48%
PT rev (1m)-10%
PT rev (3m)-17.3%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-3.72%
EPS NY rev (1m)-8.79%
EPS NY rev (3m)-14.81%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)-6.81%
Revenue NY rev (3m)-9.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 6.3 | ||
| P/S | 0.53 | ||
| P/FCF | 11.46 | ||
| P/OCF | 10.22 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 5.83 |
EPS(TTM)8.2
EY15.87%
EPS(NY)8.21
Fwd EY15.88%
FCF(TTM)4.51
FCFY8.73%
OCF(TTM)5.06
OCFY9.79%
SpS96.61
BVpS56.61
TBVpS56.61
PEG (NY)N/A
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.37% | ||
| ROE | 16.01% | ||
| ROCE | 13.55% | ||
| ROIC | 10.4% | ||
| ROICexc | 11.6% | ||
| ROICexgc | 11.75% | ||
| OM | 11.34% | ||
| PM (TTM) | 9.38% | ||
| GM | 21.34% | ||
| FCFM | 4.67% |
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-Score6
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 5.23 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 105.47% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.08% | ||
| Profit Quality | 49.74% | ||
| Current Ratio | 5.74 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 3.74 |
F-Score6
WACC8.23%
ROIC/WACC1.26
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)11.56%
EPS 3Y11.99%
EPS 5Y24.25%
EPS Q2Q%-15.34%
EPS Next Y-8.98%
EPS Next 2Y-1.57%
EPS Next 3Y1.17%
EPS Next 5YN/A
Revenue 1Y (TTM)8.1%
Revenue growth 3Y6.58%
Revenue growth 5Y8.77%
Sales Q2Q%-5.18%
Revenue Next Year-3.61%
Revenue Next 2Y-2.43%
Revenue Next 3Y0.89%
Revenue Next 5YN/A
EBIT growth 1Y5.8%
EBIT growth 3Y5.13%
EBIT growth 5Y18.09%
EBIT Next Year1.18%
EBIT Next 3Y3.89%
EBIT Next 5YN/A
FCF growth 1Y-69.12%
FCF growth 3YN/A
FCF growth 5Y8.96%
OCF growth 1Y-66.5%
OCF growth 3YN/A
OCF growth 5Y7.64%