KBH Stock Analysis: KB Home | NYSE
Residential Construction | NYSE, USA | Market Cap: 2.867m USD | 12M Return: -21.2% | US48666K1097 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 70.8M
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 (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: 227.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 4.28 > 1.0 |
| NWC/Revenue: 66.22% < 20% (prev 82.52%; Δ -16.30% < -1%) |
| CFO/TA 0.06 > 3% & CFO 411.1m > Net Income 227.6m |
| Net Debt (1.98b) to EBITDA (300.5m): 6.59 < 3 |
| Current Ratio: 2.08 > 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: 0.49 (Total Current Assets 6.60b - Total Current Liabilities 3.17b) / Total Assets 6.97b |
| B: 0.52 (Retained Earnings 3.63b / Total Assets 6.97b) |
| C: 0.04 (EBIT TTM 263.2m / Avg Total Assets 6.98b) |
| D: 1.20 (Book Value of Equity 3.80b / Total Liabilities 3.17b) |
| Altman-Z'' = 6.44 = AAA |
| DSRI: 1.29 (Receivables 397.8m/390.7m, Revenue 5.18b/6.54b) |
| GMI: 1.46 (GM 19.87% / 13.63%) |
| AQI: 0.93 (AQ_t 0.04 / 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 = -2.57 (Cap -4..+1) = A |
As of September 27, 2026, the stock is trading at USD 48.01 with a total of 1,521,191 shares traded. Over the past week, the price has changed by +1.89%, over one month by -15.93%, over three months by -20.60% and over the past year by -21.19%.
Current recommended Stop Loss: 45.80 (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 | 55.6 | 15.8% |
P/E Trailing = 11.472
P/E Forward = 11.5741
P/S = 0.5208
P/B = 0.7836
P/EG = 5.9748
Revenue TTM = 5.18b USD
EBIT TTM = 263.2m USD
EBITDA TTM = 300.5m 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 = 4.85b USD (2.87b + Debt 2.14b - CCE 159.0m)
Interest Coverage Ratio = unknown (Ebit TTM 263.2m / Interest Expense TTM 0.0)
EV/FCF = 13.37x (Enterprise Value 4.85b / FCF TTM 362.5m)
FCF Yield = 7.48% (FCF TTM 362.5m / Enterprise Value 4.85b)
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 = 0.70 (Enterprise Value 4.85b / Total Assets 6.97b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 2.14b)
Taxrate = 20.97% (60.4m / 288.0m)
NOPAT = 208.0m (EBIT 263.2m * (1 - 20.97%))
Current Ratio = 2.08 (Total Current Assets 6.60b / Total Current Liabilities 3.17b)
Debt / Equity = 0.56 (Debt 2.14b / totalStockholderEquity, last quarter 3.80b)
Debt / EBITDA = 6.59 (Net Debt 1.98b / EBITDA 300.5m)
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 = 4.76% (EBIT 263.2m / Capital Employed (Equity 3.84b + L.T.Debt 1.69b))
RoIC = 3.61% (NOPAT 208.0m / Invested Capital 5.75b)
WACC = 4.78% (E(2.87b)/V(5.01b) * Re(8.34%) + D(2.14b)/V(5.01b) * Rd(0.0%) * (1-Tc(0.21)))
Discount Rate = 8.34% (= 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=0.54 | Chg30d=-25.56% | Revisions=-25% | Analysts=8
EPS current Year (2026-11-30): EPS=3.24 | Chg30d=-2.78% | Revisions=+13% | GrowthEPS=-47.3% | GrowthRev=-19.1%
EPS next Year (2027-11-30): EPS=3.85 | Chg30d=-16.47% | Revisions=-25% | GrowthEPS=+18.7% | GrowthRev=+3.2%
[Analyst] Revisions Ratio: +0% (up=7, down=7)