KB HOME (KBH)
US48666K1097 - Common Stock
We assign a fundamental rating of 6 out of 10 to KBH. KBH was compared to 64 industry peers in the Household Durables industry. While KBH has a great profitability rating, there are some minor concerns on its financial health. 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
KBH had positive earnings in the past year.
KBH had a positive operating cash flow in the past year.
KBH had positive earnings in each of the past 5 years.
KBH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.93%, KBH belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
KBH has a better Return On Equity (18.75%) than 74.19% of its industry peers.
The Return On Invested Capital of KBH (12.03%) is better than 70.97% 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 10.82%.
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
KBH's Profit Margin of 9.26% is fine compared to the rest of the industry. KBH outperforms 74.19% of its industry peers.
KBH's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 11.17%, KBH is doing good in the industry, outperforming 62.90% of the companies in the same industry.
KBH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.44%, KBH is doing worse than 80.65% of the companies in the same industry.
KBH's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for KBH has been reduced compared to 1 year ago.
The number of shares outstanding for KBH has been reduced compared to 5 years ago.
The debt/assets ratio for KBH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.59 indicates that KBH is not in any danger for bankruptcy at the moment.
The Altman-Z score of KBH (4.59) is better than 64.52% of its industry peers.
The Debt to FCF ratio of KBH is 6.22, which is on the high side as it means it would take KBH, 6.22 years of fcf income to pay off all of its debts.
KBH has a Debt to FCF ratio of 6.22. This is comparable to the rest of the industry: KBH outperforms 53.23% of its industry peers.
KBH has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KBH (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 4.59 |
ROIC/WACC1.35
WACC8.89%
2.3 Liquidity
KBH has a Current Ratio of 5.77. This indicates that KBH is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 5.77, KBH is doing good in the industry, outperforming 77.42% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that KBH may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, KBH is not doing good in the industry: 62.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.77 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
KBH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.83%.
Measured over the past years, KBH shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.25% on average per year.
The Revenue has grown by 20.90% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 7.11% on average over the past years.
EPS 1Y (TTM)1.83%
EPS 3Y31.02%
EPS 5Y20.25%
EPS Q2Q%13.33%
Revenue 1Y (TTM)20.9%
Revenue growth 3Y15.29%
Revenue growth 5Y7.11%
Sales Q2Q%10.43%
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 12.80% on average per year.
KBH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.21% yearly.
EPS Next Y20.96%
EPS Next 2Y14.25%
EPS Next 3Y12.8%
EPS Next 5YN/A
Revenue Next Year8.91%
Revenue Next 2Y7.68%
Revenue Next 3Y7.21%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.97, the valuation of KBH can be described as very reasonable.
72.58% of the companies in the same industry are more expensive than KBH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KBH to the average of the S&P500 Index (28.96), we can say KBH is valued rather cheaply.
A Price/Forward Earnings ratio of 8.46 indicates a reasonable valuation of KBH.
80.65% of the companies in the same industry are more expensive than KBH, based on the Price/Forward Earnings ratio.
KBH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 8.46 |
4.2 Price Multiples
74.19% of the companies in the same industry are more expensive than KBH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KBH indicates a somewhat cheap valuation: KBH is cheaper than 61.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.97 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of KBH may justify a higher PE ratio.
A more expensive valuation may be justified as KBH's earnings are expected to grow with 12.80% in the coming years.
PEG (NY)0.48
PEG (5Y)0.49
EPS Next 2Y14.25%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, KBH has a reasonable but not impressive dividend return.
KBH's Dividend Yield is a higher than the industry average which is at 2.47.
With a Dividend Yield of 1.27, KBH pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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 Years1
Div Non Decr Years10
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 2Y14.25%
EPS Next 3Y12.8%
KB HOME
NYSE:KBH (11/21/2024, 4:44:26 PM)
After market: 77.79 0 (0%)77.79
-0.18 (-0.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 8.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.48
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.93% | ||
| ROE | 18.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.17% | ||
| PM (TTM) | 9.26% | ||
| GM | 21.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.77 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.83%
EPS 3Y31.02%
EPS 5Y
EPS Q2Q%
EPS Next Y20.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.9%
Revenue growth 3Y15.29%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y