KB HOME (KBH) Stock Fundamental Analysis
NYSE:KBH - New York Stock Exchange, Inc. - US48666K1097 - Common Stock
Taking everything into account, KBH scores 6 out of 10 in our fundamental rating. KBH was compared to 67 industry peers in the Household Durables industry. KBH scores excellent on profitability, but there are some minor concerns on its financial health. KBH scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year KBH was profitable.
KBH had a positive operating cash flow in the past year.
Of the past 5 years KBH 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: KBH reported negative operating cash flow in multiple years.
1.2 Ratios
KBH has a Return On Assets of 10.93%. This is amongst the best in the industry. KBH outperforms 83.08% of its industry peers.
KBH's Return On Equity of 18.75% is fine compared to the rest of the industry. KBH outperforms 75.38% of its industry peers.
The Return On Invested Capital of KBH (12.03%) is better than 70.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KBH is in line with the industry average of 11.99%.
The 3 year average ROIC (11.87%) for KBH is below the current ROIC(12.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.93% | ||
| ROE | 18.75% | ||
| ROIC | 12.03% |
ROA(3y)10.22%
ROA(5y)8.3%
ROE(3y)18.73%
ROE(5y)15.69%
ROIC(3y)11.87%
ROIC(5y)9.52%
1.3 Margins
With a decent Profit Margin value of 9.26%, KBH is doing good in the industry, outperforming 73.85% of the companies in the same industry.
KBH's Profit Margin has improved in the last couple of years.
The Operating Margin of KBH (11.17%) is better than 66.15% of its industry peers.
KBH's Operating Margin has improved in the last couple of years.
KBH has a worse Gross Margin (21.44%) than 76.92% of its industry peers.
In the last couple of years the Gross Margin of KBH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.17% | ||
| PM (TTM) | 9.26% | ||
| GM | 21.44% |
OM growth 3Y13.14%
OM growth 5Y8.2%
PM growth 3Y9.06%
PM growth 5Y19.66%
GM growth 3Y3.92%
GM growth 5Y4.04%
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.
KBH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.42 indicates that KBH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.42, KBH is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
KBH has a debt to FCF ratio of 6.22. This is a slightly negative value and a sign of low solvency as KBH would need 6.22 years to pay back of all of its debts.
KBH has a Debt to FCF ratio (6.22) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.42 indicates that KBH is not too dependend on debt financing.
KBH has a worse Debt to Equity ratio (0.42) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 4.42 |
ROIC/WACC1.41
WACC8.52%
2.3 Liquidity
A Current Ratio of 5.77 indicates that KBH has no problem at all paying its short term obligations.
The Current ratio of KBH (5.77) is better than 80.00% of its industry peers.
A Quick Ratio of 0.69 indicates that KBH may have some problems paying its short term obligations.
KBH has a Quick ratio of 0.69. This is in the lower half of the industry: KBH underperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.77 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.31% over the past year.
KBH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.25% yearly.
EPS 1Y (TTM)20.31%
EPS 3Y11.99%
EPS 5Y24.25%
EPS Q2Q%36.22%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.47%
3.2 Future
Based on estimates for the next years, KBH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.41% on average per year.
KBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.08% yearly.
EPS Next Y6.84%
EPS Next 2Y9.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.24%
Revenue Next 2Y2.56%
Revenue Next 3Y5.08%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.91 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 81.54% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. KBH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.41, the valuation of KBH can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KBH indicates a somewhat cheap valuation: KBH is cheaper than 80.00% of the companies listed in the same industry.
KBH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 7.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KBH indicates a rather cheap valuation: KBH is cheaper than 81.54% of the companies listed in the same industry.
66.15% of the companies in the same industry are more expensive than KBH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.07 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KBH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.16
PEG (5Y)0.33
EPS Next 2Y9.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.47%, KBH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.90, KBH pays a bit more dividend than its industry peers.
KBH's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
On average, the dividend of KBH grows each year by 47.74%, which is quite nice.
KBH has been paying a dividend for at least 10 years, so it has a reliable track record.
KBH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)47.74%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
9.20% of the earnings are spent on dividend by KBH. This is a low number and sustainable payout ratio.
The dividend of KBH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.2%
EPS Next 2Y9.41%
EPS Next 3YN/A
KB HOME
NYSE:KBH (1/21/2025, 8:10:30 PM)
After market: 66.8 -0.23 (-0.34%)67.03
-0.86 (-1.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners108.54%
Inst Owner Change1.05%
Ins Owners3.04%
Ins Owner Change-0.88%
Market Cap4.92B
Analysts53.91
Price Target83.25 (24.2%)
Short Float %8.41%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend0.66
Dividend Growth(5Y)47.74%
DP9.2%
Div Incr Years2
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.23%
Min EPS beat(2)-1.73%
Max EPS beat(2)18.2%
EPS beat(4)3
Avg EPS beat(4)8.94%
Min EPS beat(4)-1.73%
Max EPS beat(4)18.2%
EPS beat(8)6
Avg EPS beat(8)14.44%
EPS beat(12)9
Avg EPS beat(12)11.4%
EPS beat(16)12
Avg EPS beat(16)11.02%
Revenue beat(2)2
Avg Revenue beat(2)1.47%
Min Revenue beat(2)0.44%
Max Revenue beat(2)2.51%
Revenue beat(4)3
Avg Revenue beat(4)1.17%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)2.51%
Revenue beat(8)6
Avg Revenue beat(8)4.41%
Revenue beat(12)7
Avg Revenue beat(12)2.21%
Revenue beat(16)8
Avg Revenue beat(16)0.75%
PT rev (1m)-4.17%
PT rev (3m)4.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.68%
EPS NY rev (1m)0%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 7.41 | ||
| P/S | 0.61 | ||
| P/FCF | 18.07 | ||
| P/OCF | 15.84 | ||
| P/B | 1.23 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)8.47
EY12.64%
EPS(NY)9.05
Fwd EY13.5%
FCF(TTM)3.71
FCFY5.53%
OCF(TTM)4.23
OCFY6.31%
SpS110.08
BVpS54.37
TBVpS54.37
PEG (NY)1.16
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.93% | ||
| ROE | 18.75% | ||
| ROCE | 15.75% | ||
| ROIC | 12.03% | ||
| ROICexc | 12.87% | ||
| ROICexgc | 13.04% | ||
| OM | 11.17% | ||
| PM (TTM) | 9.26% | ||
| GM | 21.44% | ||
| FCFM | 3.37% |
ROA(3y)10.22%
ROA(5y)8.3%
ROE(3y)18.73%
ROE(5y)15.69%
ROIC(3y)11.87%
ROIC(5y)9.52%
ROICexc(3y)12.93%
ROICexc(5y)10.52%
ROICexgc(3y)13.1%
ROICexgc(5y)10.69%
ROCE(3y)15.55%
ROCE(5y)12.47%
ROICexcg growth 3Y19.82%
ROICexcg growth 5Y9.24%
ROICexc growth 3Y20.17%
ROICexc growth 5Y9.43%
OM growth 3Y13.14%
OM growth 5Y8.2%
PM growth 3Y9.06%
PM growth 5Y19.66%
GM growth 3Y3.92%
GM growth 5Y4.04%
F-Score6
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 6.22 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 101.66% | ||
| Cap/Sales | 0.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 33.02% | ||
| Profit Quality | 36.38% | ||
| Current Ratio | 5.77 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 4.42 |
F-Score6
WACC8.52%
ROIC/WACC1.41
Cap/Depr(3y)125.04%
Cap/Depr(5y)125.08%
Cap/Sales(3y)0.63%
Cap/Sales(5y)0.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.31%
EPS 3Y11.99%
EPS 5Y24.25%
EPS Q2Q%36.22%
EPS Next Y6.84%
EPS Next 2Y9.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.47%
Revenue Next Year4.24%
Revenue Next 2Y2.56%
Revenue Next 3Y5.08%
Revenue Next 5YN/A
EBIT growth 1Y7.6%
EBIT growth 3Y30.44%
EBIT growth 5Y15.9%
EBIT Next Year23.5%
EBIT Next 3Y9.86%
EBIT Next 5Y9.32%
FCF growth 1Y315.69%
FCF growth 3Y54.88%
FCF growth 5Y37.37%
OCF growth 1Y482.59%
OCF growth 3Y51.61%
OCF growth 5Y37.35%