KBH Stock Analysis: KB Home | NYSE
Residential Construction | NYSE, USA | Market Cap: 3.851m USD | 12M Return: 20.3% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 79.5M
EPS Trend: -67.9%
Qual. Beats: 0
Rev. Trend: -59.2%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
KB Home (NYSE: KBH) is a U.S. homebuilding company that designs, builds, and sells residential properties, including attached and detached single-family homes, townhomes, and condominiums. Its customer base primarily targets first-time, first move-up, second move-up, and active adult homebuyers.
In addition to home construction, KB Home offers a range of financial services to its buyers, including residential mortgage loan origination, property and casualty insurance, earthquake and flood coverage, personal property insurance, and title services. These ancillary services are commonly bundled with home purchases in the homebuilding industry to streamline the buying process and generate supplementary revenue beyond home sales.
The company operates across nine states: Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas, and Washington. KB Home was founded in 1957 and is headquartered in Los Angeles, California. It was formerly known as Kaufman and Broad Home Corporation before adopting its current name in January 2001.
As a mid-cap stock in the Consumer Discretionary sector under the GICS Homebuilding sub-industry, KB Homes business performance is closely tied to U.S. housing market conditions, including mortgage rates, home affordability, and regional construction demand. Its geographic footprint spans several of the most active U.S. housing markets, particularly in the Sun Belt and West Coast regions, which have been key drivers of national homebuilding activity.
- Mortgage rate volatility pressures first-time buyer demand
- California market exposure weighs on home deliveries and margins
- Incentive spending widens as net orders soften
| Net Income: 272.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 7.93 > 1.0 |
| NWC/Revenue: 109.3% < 20% (prev 85.20%; Δ 24.14% < -1%) |
| CFO/TA 0.08 > 3% & CFO 547.6m > Net Income 272.1m |
| Net Debt (1.80b) to EBITDA (335.7m): 5.35 < 3 |
| Current Ratio: 20.81 > 1.5 & < 3 |
| Outstanding Shares: last quarter (63.2m) vs 12m ago -12.33% < -2% |
| Gross Margin: 17.46% > 18% (prev 20.49%; Δ -3.03% > 0.5%) |
| Asset Turnover: 79.81% > 50% (prev 95.10%; Δ -15.29% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.89 (Total Current Assets 6.32b - Total Current Liabilities 303.9m) / Total Assets 6.78b |
| B: 0.54 (Retained Earnings 3.63b / Total Assets 6.78b) |
| C: 0.05 (EBIT TTM 316.4m / Avg Total Assets 6.90b) |
| D: 1.98 (Book Value of Equity 4.50b / Total Liabilities 2.27b) |
| Altman-Z'' = 9.96 = AAA |
| DSRI: 1.26 (Receivables 389.7m/374.7m, Revenue 5.50b/6.67b) |
| GMI: 1.17 (GM 20.49% / 17.46%) |
| AQI: 1.28 (AQ_t 0.05 / AQ_t-1 0.04) |
| SGI: 0.82 (Revenue 5.50b / 6.67b) |
| TATA: -0.04 (NI 272.1m - CFO 547.6m) / TA 6.78b) |
| Beneish M = -2.62 (Cap -4..+1) = A |
As of July 01, 2026, the stock is trading at USD 62.64 with a total of 1,297,100 shares traded. Over the past week, the price has changed by +18.70%, over one month by +22.46%, over three months by +21.56% and over the past year by +20.25%.
Current recommended Stop Loss: 59.50 (which is 5% 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 | 55.2 | -11.9% |
P/E Trailing = 10.1838
P/E Forward = 19.2308
P/S = 0.6503
P/B = 0.9996
P/EG = 5.9748
Revenue TTM = 5.50b USD
EBIT TTM = 316.4m USD
EBITDA TTM = 335.7m USD
Long Term Debt = 1.69b USD (from longTermDebt, last fiscal year)
Short Term Debt = 350.0m USD (from shortTermDebt, last fiscal year)
Debt = 2.00b USD (from shortLongTermDebtTotal, last quarter) + Leases 28.5m
Net Debt = 1.80b USD (calculated: Debt 2.00b - CCE 199.8m)
Enterprise Value = 5.65b USD (3.85b + Debt 2.00b - CCE 199.8m)
Interest Coverage Ratio = unknown (Ebit TTM 316.4m / Interest Expense TTM 0.0)
EV/FCF = 11.36x (Enterprise Value 5.65b / FCF TTM 497.2m)
FCF Yield = 8.80% (FCF TTM 497.2m / Enterprise Value 5.65b)
FCF Margin = 9.03% (FCF TTM 497.2m / Revenue TTM 5.50b)
Net Margin = 4.94% (Net Income TTM 272.1m / Revenue TTM 5.50b)
Gross Margin = 17.46% ((Revenue TTM 5.50b - Cost of Revenue TTM 4.54b) / Revenue TTM)
Gross Margin QoQ = 18.24% (prev 15.55%)
Tobins Q-Ratio = 0.83 (Enterprise Value 5.65b / Total Assets 6.78b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 2.00b)
Taxrate = 14.00% (44.3m / 316.4m)
NOPAT = 272.1m (EBIT 316.4m * (1 - 14.00%))
Current Ratio = 20.81 (Total Current Assets 6.32b / Total Current Liabilities 303.9m)
Debt / Equity = 0.44 (Debt 2.00b / totalStockholderEquity, last quarter 4.50b)
Debt / EBITDA = 5.35 (Net Debt 1.80b / EBITDA 335.7m)
Debt / FCF = 3.61 (Net Debt 1.80b / FCF TTM 497.2m)
Total Stockholder Equity = 4.04b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.95% (Net Income 272.1m / Total Assets 6.78b)
RoE = 6.74% (Net Income TTM 272.1m / Total Stockholder Equity 4.04b)
RoCE = 5.52% (EBIT 316.4m / Capital Employed (Equity 4.04b + L.T.Debt 1.69b))
RoIC = 4.11% (NOPAT 272.1m / Invested Capital 6.62b)
WACC = 5.73% (E(3.85b)/V(5.85b) * Re(8.70%) + D(2.00b)/V(5.85b) * Rd(0.0%) * (1-Tc(0.14)))
Discount Rate = 8.70% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -9.05%
[DCF] Terminal Value 75.44% ; FCFF base≈497.2m ; Y1≈499.2m ; Y5≈528.9m
[DCF] Fair Price = 102.7 (EV 8.23b - Net Debt 1.80b = Equity 6.43b / Shares 62.6m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: -67.88 | EPS CAGR: -14.60% | SUE: 0.0 | # QB: 0
Revenue Correlation: -59.24 | Revenue CAGR: -4.14% | SUE: 0.45 | # QB: 0
EPS current Quarter (2026-08-31): EPS=0.90 | Chg30d=-2.41% | Revisions=-20% | Analysts=11
EPS current Year (2026-11-30): EPS=3.20 | Chg30d=-1.29% | Revisions=-20% | GrowthEPS=-47.9% | GrowthRev=-19.0%
EPS next Year (2027-11-30): EPS=4.55 | Chg30d=-2.07% | Revisions=-20% | GrowthEPS=+42.0% | GrowthRev=+9.3%
[Analyst] Revisions Ratio: -20%