KB Home Return On Asset vs. Return On Equity
| KBH Stock | USD 65.69 0.58 0.88% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.2 | 0.25 |
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For KB Home profitability analysis, we use financial ratios and fundamental drivers that measure the ability of KB Home to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well KB Home utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between KB Home's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of KB Home over time as well as its relative position and ranking within its peers.
KBH |
KB Home's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
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 0.133 | Dividend Share 0.9 | Earnings Share 7.79 | Revenue Per Share 86.893 | Quarterly Revenue Growth 0.104 |
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.
Please note, there is a significant difference between KB Home's value and its price as these two are different measures arrived at by different 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.
KB Home Return On Equity vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining KB Home's current stock value. Our valuation model uses many indicators to compare KB Home value to that of its competitors to determine the firm's financial worth. KB Home is rated below average in return on asset category among its peers. It also is rated below average in return on equity category among its peers reporting about 2.20 of Return On Equity per Return On Asset. As of now, KB Home's Return On Equity is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the KB Home's earnings, one of the primary drivers of an investment's value.KB Home's Earnings Breakdown by Geography
KBH Return On Equity vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
KB Home |
| = | 0.0716 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
KB Home |
| = | 0.16 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
KBH Return On Equity Comparison
KB Home is currently under evaluation in return on equity category among its peers.
KB Home Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in KB Home, profitability is also one of the essential criteria for including it into their portfolios because, without profit, KB Home will eventually generate negative long term returns. The profitability progress is the general direction of KB Home's change in net profit over the period of time. It can combine multiple indicators of KB Home, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -4.2 M | -4.4 M | |
| Operating Income | 826.5 M | 867.9 M | |
| Income Before Tax | 470.4 M | 494 M | |
| Total Other Income Expense Net | -278.7 M | -264.8 M | |
| Net Income | 678.7 M | 712.6 M | |
| Income Tax Expense | -163 M | -154.8 M | |
| Net Income Applicable To Common Shares | 939.2 M | 986.1 M | |
| Net Income From Continuing Ops | 678.7 M | 712.6 M | |
| Non Operating Income Net Other | 19.6 M | 20.6 M | |
| Interest Income | 12.4 M | 13 M | |
| Net Interest Income | 15.8 M | 16.6 M | |
| Change To Netincome | 46.8 M | 49.1 M | |
| Net Income Per Share | 6.57 | 6.90 | |
| Income Quality | 1.65 | 1.73 | |
| Net Income Per E B T | 0.69 | 0.73 |
KBH Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on KB Home. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of KB Home position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the KB Home's important profitability drivers and their relationship over time.
Use KB Home in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if KB Home position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KB Home will appreciate offsetting losses from the drop in the long position's value.KB Home Pair Trading
KB Home Pair Trading Analysis
The ability to find closely correlated positions to KB Home could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace KB Home when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back KB Home - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling KB Home to buy it.
The correlation of KB Home is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as KB Home moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if KB Home moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for KB Home can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your KB Home position
In addition to having KB Home in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Utilities ETFs theme has 13 constituents at this time.
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Check out Correlation Analysis. 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
To fully project KB Home's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of KB Home at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include KB Home's income statement, its balance sheet, and the statement of cash flows.