Is KB Home Stock a Good Investment?
KB Home Investment Advice | KBH |
- Examine KB Home's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research KB Home's leadership team and their track record. Good management can help KB Home navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Household Durables space and any emerging trends that could impact KB Home's business and its evolving consumer preferences.
- Compare KB Home's performance and market position to its competitors. Analyze how KB Home is positioned in terms of product offerings, innovation, and market share.
- Check if KB Home pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about KB Home's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in KB Home stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if KB Home is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine KB Home Stock
Researching KB Home's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 97.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.06. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. KB Home has Price/Earnings To Growth (PEG) ratio of 0.63. The entity recorded earning per share (EPS) of 8.45. The firm last dividend was issued on the 6th of February 2025. KB Home had 2:1 split on the 29th of April 2005.
To determine if KB Home is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding KB Home's research are outlined below:
| KB Home generated a negative expected return over the last 90 days | |
| KB Home is unlikely to experience financial distress in the next 2 years | |
| Over 97.0% of the company shares are owned by institutional investors | |
| On 20th of February 2025 KB Home paid $ 0.25 per share dividend to its current shareholders | |
| Latest headline from simplywall.st: Why KB Home Could Be Worth Watching |
KB Home Quarterly Liabilities And Stockholders Equity |
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KB Home uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in KB Home. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to KB Home's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of March 2024 Upcoming Quarterly Report | View | |
| 19th of June 2024 Next Financial Report | View | |
| 29th of February 2024 Next Fiscal Quarter End | View | |
| 8th of January 2025 Next Fiscal Year End | View | |
| 30th of November 2023 Last Quarter Report | View | |
| 30th of November 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact KB Home's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises KB Home's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1998-03-24 | 1998-02-28 | 0.09 | 0.1 | 0.01 | 11 | ||
1997-03-20 | 1997-02-28 | 0.05 | 0.06 | 0.01 | 20 | ||
2017-03-23 | 2017-02-28 | 0.13 | 0.15 | 0.02 | 15 | ||
2015-06-19 | 2015-05-31 | 0.08 | 0.1 | 0.02 | 25 | ||
2013-06-27 | 2013-05-31 | -0.06 | -0.04 | 0.02 | 33 | ||
1999-03-25 | 1999-02-28 | 0.16 | 0.18 | 0.02 | 12 | ||
1996-09-24 | 1996-08-31 | 0.15 | 0.17 | 0.02 | 13 | ||
1996-03-26 | 1996-02-29 | 0.03 | 0.05 | 0.02 | 66 |
KB Home Target Price Consensus
KBH target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. KB Home's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 15 | Hold |
Most KBH analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand KBH stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of KB Home, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationKB Home Target Price Projection
KB Home's current and average target prices are 61.81 and 80.31, respectively. The current price of KB Home is the price at which KB Home is currently trading. On the other hand, KB Home's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On KB Home Target Price
KB Home Analyst Ratings
KB Home's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about KB Home stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of KB Home's financials, market performance, and future outlook by experienced professionals. KB Home's historical ratings below, therefore, can serve as a valuable tool for investors.Know KB Home's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as KB Home is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading KB Home backward and forwards among themselves. KB Home's institutional investor refers to the entity that pools money to purchase KB Home's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 1.3 M | Lsv Asset Management | 2024-12-31 | 1.1 M | Northern Trust Corp | 2024-12-31 | 1.1 M | Arrowstreet Capital Limited Partnership | 2024-12-31 | 910 K | Millennium Management Llc | 2024-12-31 | 905.2 K | Charles Schwab Investment Management Inc | 2024-12-31 | 893.2 K | Bank Of New York Mellon Corp | 2024-12-31 | 756.8 K | Norges Bank | 2024-12-31 | 755.3 K | Allianz Asset Management Ag | 2024-12-31 | 734 K | Blackrock Inc | 2024-12-31 | 10.1 M | Vanguard Group Inc | 2024-12-31 | 7.1 M |
KB Home's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 4.4 B.Market Cap |
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KB Home's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.09 | 0.09 | |
| Return On Capital Employed | 0.13 | 0.08 | |
| Return On Assets | 0.09 | 0.09 | |
| Return On Equity | 0.16 | 0.19 |
Determining KB Home's profitability involves analyzing its financial statements and using various financial metrics to determine if KB Home is a good buy. For example, gross profit margin measures KB Home's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of KB Home's profitability and make more informed investment decisions.
KB Home's Earnings Breakdown by Geography
Evaluate KB Home's management efficiency
KB Home has Return on Asset of 0.0752 % which means that on every $100 spent on assets, it made $0.0752 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1664 %, implying that it generated $0.1664 on every 100 dollars invested. KB Home's management efficiency ratios could be used to measure how well KB Home manages its routine affairs as well as how well it operates its assets and liabilities. As of now, KB Home's Return On Tangible Assets are increasing as compared to previous years. The KB Home's current Return On Assets is estimated to increase to 0.09, while Return On Capital Employed is projected to decrease to 0.08. As of now, KB Home's Net Tangible Assets are increasing as compared to previous years. The KB Home's current Return On Tangible Assets is estimated to increase to 0.09, while Total Current Assets are projected to decrease to under 3.8 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 48.89 | 51.33 | |
| Tangible Book Value Per Share | 48.89 | 51.33 | |
| Enterprise Value Over EBITDA | 10.20 | 10.71 | |
| Price Book Value Ratio | 1.75 | 1.64 | |
| Enterprise Value Multiple | 10.20 | 10.71 | |
| Price Fair Value | 1.75 | 1.64 | |
| Enterprise Value | 3.8 B | 2.4 B |
KB Home's management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Basic technical analysis of KBH Stock
As of the 20th of March, KB Home owns the Information Ratio of (0.10), market risk adjusted performance of (0.32), and Mean Deviation of 1.49. KB Home technical analysis lets you operate past data patterns with an objective to determine a pattern that forecasts the direction of the entity's future prices.KB Home's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific KB Home insiders, such as employees or executives, is commonly permitted as long as it does not rely on KB Home's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases KB Home insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
KB Home's Outstanding Corporate Bonds
KB Home issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. KB Home uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most KBH bonds can be classified according to their maturity, which is the date when KB Home has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US48666KAZ21 Corp BondUS48666KAZ21 | View | |
| KB HOME 6875 Corp BondUS48666KAX72 | View | |
| KB Home 48 Corp BondUS48666KAY55 | View | |
| KBH 725 15 JUL 30 Corp BondUS48666KBA60 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View |
Understand KB Home's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing KB Home's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.11) | |||
| Market Risk Adjusted Performance | (0.32) | |||
| Mean Deviation | 1.49 | |||
| Coefficient Of Variation | (743.81) | |||
| Standard Deviation | 1.94 | |||
| Variance | 3.78 | |||
| Information Ratio | (0.10) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.11) | |||
| Treynor Ratio | (0.33) | |||
| Maximum Drawdown | 9.3 | |||
| Value At Risk | (2.88) | |||
| Potential Upside | 3.4 | |||
| Skewness | 0.392 | |||
| Kurtosis | 0.4215 |
| Risk Adjusted Performance | (0.11) | |||
| Market Risk Adjusted Performance | (0.32) | |||
| Mean Deviation | 1.49 | |||
| Coefficient Of Variation | (743.81) | |||
| Standard Deviation | 1.94 | |||
| Variance | 3.78 | |||
| Information Ratio | (0.10) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.11) | |||
| Treynor Ratio | (0.33) | |||
| Maximum Drawdown | 9.3 | |||
| Value At Risk | (2.88) | |||
| Potential Upside | 3.4 | |||
| Skewness | 0.392 | |||
| Kurtosis | 0.4215 |
Consider KB Home's intraday indicators
KB Home intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of KB Home stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
KB Home Corporate Filings
| 7th of March 2025 Other Reports | ViewVerify | |
F4 | 25th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 27th of January 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10K | 24th of January 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
KBH Stock media impact
Far too much social signal, news, headlines, and media speculation about KB Home that are available to investors today. That information is available publicly through KBH media outlets and privately through word of mouth or via KBH internal channels. However, regardless of the origin, that massive amount of KBH data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of KB Home news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of KB Home relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to KB Home's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive KB Home alpha.
KB Home Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards KB Home can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
KB Home Historical Investor Sentiment
Investor biases related to KB Home's public news can be used to forecast risks associated with an investment in KBH. The trend in average sentiment can be used to explain how an investor holding KBH can time the market purely based on public headlines and social activities around KB Home. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
KB Home's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for KB Home and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average KB Home news discussions. The higher the estimate score, the more favorable the investor's outlook on KB Home.
KB Home Maximum Pain Price Across June 20th 2025 Option Contracts
KB Home's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of KB Home close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of KB Home's options.
KB Home Corporate Directors
| Stuart Gabriel | Independent Director | Profile | |
| Thomas Gilligan | Independent Director | Profile | |
| Michael Wood | Independent Director | Profile | |
| Dorene Dominguez | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in KB Home. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. For more detail on how to invest in KBH Stock please use our How to Invest in KB Home guide.You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Is Household Durables space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of KB Home. If investors know KBH will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about KB Home listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.36 | Dividend Share 0.95 | Earnings Share 8.45 | Revenue Per Share | Quarterly Revenue Growth 0.195 |
The market value of KB Home is measured differently than its book value, which is the value of KBH that is recorded on the company's balance sheet. Investors also form their own opinion of KB Home's value that differs from its market value or its book value, called intrinsic value, which is KB Home's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because KB Home's market value can be influenced by many factors that don't directly affect KB Home's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between KB Home's value and its price, as these two are different measures arrived at by various means. Investors typically determine if KB Home is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KB Home's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.