KBH Stock Analysis: KB Home | NYSE
Residential Construction | NYSE, USA | Market Cap: 2.825m USD | 12M Return: -28.3% | US48666K1097 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 83.2M
EPS Trend: -77.9%
Qual. Beats: 1
Rev. Trend: -70.2%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
KB Home is a U.S. homebuilding company that designs, builds, and sells residential properties, including attached and detached single-family homes, townhomes, and condominiums. Its customers primarily include first-time, first move-up, second move-up, and active adult homebuyers. The company also offers integrated financial services such as mortgage banking, property and casualty insurance, and title services to support its home sales.
The company operates across nine states: Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas, and Washington. Founded in 1957 and headquartered in Los Angeles, California, KB Home was originally known as Kaufman and Broad Home Corporation before adopting its current name in January 2001.
As a homebuilder within the Consumer Discretionary sector, KB Homes business is highly cyclical and closely tied to housing demand, mortgage rates, and broader economic conditions. The inclusion of mortgage banking, insurance, and title services reflects a vertically integrated model commonly used by homebuilders to simplify the purchase process for buyers and capture additional revenue from each transaction.
- Mortgage rates climb, pressuring first-time buyer affordability and orders
- California land costs and buyer incentives squeeze homebuilding gross margins
- Community count expansion accelerates future home delivery revenue
| Net Income: 227.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 4.28 > 1.0 |
| NWC/Revenue: 105.8% < 20% (prev 82.52%; Δ 23.28% < -1%) |
| CFO/TA 0.06 > 3% & CFO 411.1m > Net Income 227.6m |
| Net Debt (1.98b) to EBITDA (315.0m): 6.29 < 3 |
| Current Ratio: 6.19 > 1.5 & < 3 |
| Outstanding Shares: last quarter (61.8m) vs 12m ago -8.83% < -2% |
| Gross Margin: 13.63% > 18% (prev 19.87%; Δ -6.24% > 0.5%) |
| Asset Turnover: 74.25% > 50% (prev 93.65%; Δ -19.39% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.79 (Total Current Assets 6.54b - Total Current Liabilities 1.06b) / Total Assets 6.97b |
| B: 0.52 (Retained Earnings 3.63b / Total Assets 6.97b) |
| C: 0.04 (EBIT TTM 272.0m / Avg Total Assets 6.98b) |
| D: 1.20 (Book Value of Equity 3.80b / Total Liabilities 3.17b) |
| Altman-Z'' = 8.38 = AAA |
| DSRI: 1.29 (Receivables 397.8m/390.7m, Revenue 5.18b/6.54b) |
| GMI: 1.46 (GM 19.87% / 13.63%) |
| AQI: 1.13 (AQ_t 0.05 / AQ_t-1 0.04) |
| SGI: 0.79 (Revenue 5.18b / 6.54b) |
| TATA: -0.03 (NI 227.6m - CFO 411.1m) / TA 6.97b) |
| Beneish M = -2.45 (Cap -4..+1) = BBB |
As of October 07, 2026, the stock is trading at USD 45.40 with a total of 1,089,243 shares traded. Over the past week, the price has changed by -4.26%, over one month by -9.56%, over three months by -23.73% and over the past year by -28.33%.
Current recommended Stop Loss: 43.30 (which is 4.6% or 1.3 ATR below the current price).
KB Home has received a consensus analysts rating of 2.88. Therefore, it is recommended to hold KBH.
- StrongBuy: 1
- Buy: 2
- Hold: 10
- Sell: 0
- StrongSell: 3
| Analysts Target Price | 56 | 23.3% |
P/E Trailing = 13.0901
P/E Forward = 11.5741
P/S = 0.5453
P/B = 0.7836
P/EG = 5.9748
Revenue TTM = 5.18b USD
EBIT TTM = 272.0m USD
EBITDA TTM = 315.0m USD
Long Term Debt = 1.69b USD (from longTermDebt, last fiscal year)
Short Term Debt = 2.11b USD (from shortTermDebt, last quarter)
Debt = 2.14b USD (from shortLongTermDebtTotal, last quarter) + Leases 29.9m
Net Debt = 1.98b USD (calculated: Debt 2.14b - CCE 159.0m)
Enterprise Value = 4.81b USD (2.83b + Debt 2.14b - CCE 159.0m)
Interest Coverage Ratio = unknown (Ebit TTM 272.0m / Interest Expense TTM 0.0)
EV/FCF = 13.26x (Enterprise Value 4.81b / FCF TTM 362.5m)
FCF Yield = 7.54% (FCF TTM 362.5m / Enterprise Value 4.81b)
FCF Margin = 7.00% (FCF TTM 362.5m / Revenue TTM 5.18b)
Net Margin = 4.39% (Net Income TTM 227.6m / Revenue TTM 5.18b)
Gross Margin = 13.63% ((Revenue TTM 5.18b - Cost of Revenue TTM 4.47b) / Revenue TTM)
Gross Margin QoQ = 5.54% (prev 15.64%)
Tobins Q-Ratio = 0.69 (Enterprise Value 4.81b / Total Assets 6.97b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 2.14b)
Taxrate = 20.97% (60.4m / 288.0m)
NOPAT = 214.9m (EBIT 272.0m * (1 - 20.97%))
Current Ratio = 6.19 (Total Current Assets 6.54b / Total Current Liabilities 1.06b)
Debt / Equity = 0.56 (Debt 2.14b / totalStockholderEquity, last quarter 3.80b)
Debt / EBITDA = 6.29 (Net Debt 1.98b / EBITDA 315.0m)
Debt / FCF = 5.46 (Net Debt 1.98b / FCF TTM 362.5m)
Total Stockholder Equity = 3.84b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.26% (Net Income 227.6m / Total Assets 6.97b)
RoE = 5.93% (Net Income TTM 227.6m / Total Stockholder Equity 3.84b)
RoCE = 4.92% (EBIT 272.0m / Capital Employed (Equity 3.84b + L.T.Debt 1.69b))
RoIC = 2.73% (NOPAT 214.9m / Invested Capital 7.86b)
WACC = 4.74% (E(2.83b)/V(4.96b) * Re(8.33%) + D(2.14b)/V(4.96b) * Rd(0.0%) * (1-Tc(0.21)))
Discount Rate = 8.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.63 | Cagr: -9.76%
[DCF] Terminal Value 77.97% ; FCFF base≈243.3m ; Y1≈278.9m ; Y5≈410.5m
[DCF] Fair Price = 69.04 (EV 6.18b - Net Debt 1.98b = Equity 4.20b / Shares 60.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -77.93 | EPS CAGR: -21.53% | SUE: 1.54 | # QB: 1
Revenue Correlation: -70.21 | Revenue CAGR: -6.63% | SUE: 0.00 | # QB: 0
EPS current Quarter (2027-02-28): EPS=0.50 | Chg30d=-30.23% | Revisions=-25% | Analysts=8
EPS current Year (2026-11-30): EPS=3.24 | Chg30d=-2.97% | Revisions=+13% | GrowthEPS=-47.4% | GrowthRev=-19.1%
EPS next Year (2027-11-30): EPS=3.79 | Chg30d=-17.77% | Revisions=-25% | GrowthEPS=+17.1% | GrowthRev=+2.4%
[Analyst] Revisions Ratio: +0% (up=7, down=7)