Trading KB Home stock in 2025 presents a mixed bag of opportunities and hurdles. On one hand, with a high price of 65.58 and a low of 64.09, the stock shows some resilience in the residential construction sector. However, the Total Risk Alpha of -0.41 suggests that the stock might not be delivering enough returns for its risk, indicating that investors should tread carefully and weigh potential rewards against inherent risks.
Key Points
The asset utilization ratio measures how effectively a company uses its assets to generate revenue. For KB Home, this ratio stands at 96.42%, indicating the company earns $0.96 for every dollar of assets. A higher ratio suggests improved efficiency in asset use. However, KB Home's net profit margin is just 0.09%, suggesting vulnerability to even minor revenue drops, which could lead to losses. This margin is notably low, indicating potential strategic adjustments might be necessary. Similarly, the net operating margin is 0.11%, meaning the company generates $0.11 in operating income for every $100 of revenue. These figures highlight the need for KB Home to enhance its profitability and operational efficiency.KB Home, a prominent player in the household durables sector, is currently navigating a mixed landscape as it looks toward 2025. With a market value hovering around $64.47 billion, the stock's recent price action shows a slight dip of 0.66, reflecting some investor caution. Analysts present a divided outlook: while two strong buys suggest optimism, three strong sells and eight holds indicate prevailing uncertainty. The highest target price of $90.59 suggests potential upside, yet the overall consensus remains a cautious 'Hold.' The company's fiscal year ending in November will be crucial in determining whether it can overcome current challenges and capitalize on growth opportunities. As KB Home maneuvers through these dynamics, investors should keep a close eye on its performance indicators and market sentiment. Our analysis tools for KB Home (KBH) assist investors in understanding its daily market dynamics, including demand, supply, trading volume, patterns, and price fluctuations. By employing various techniques, we aim to uncover KBH's intrinsic value using popular technical indicators. In this discussion, we'll take a closer look at KB Home to assess whether its shares are fairly valued as we approach February.
KB Home technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
KB Home
financial leverage refers to using borrowed capital as a funding source to finance KB Home ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. KB Home financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to KB Home's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of KB Home's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between KB Home's total debt and its cash.
The recent plunge in stock price may raise some interest from traders. The stock closed today at a share price of
64.47 on
1,006,617 in trading volume. The company directors and management have failed to build on market volatilities in
December. However, diversifying your overall positions with KB Home may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.06. The current volatility is consistent with the ongoing market swings in
December 2024 as well as with KB Home unsystematic, company-specific events.
Current Deferred Revenue Breakdown
KB Home's Current Deferred Revenue is increasing with slightly volatile movements from year to year. Current Deferred Revenue is estimated to finish at about 71.1
M this year. Current Deferred Revenue usually refers to revenue that has been collected but not yet earned, typically from prepaid service contracts or subscriptions. This amount is considered a liability until the service is provided or the subscription period ends. As of now, KB Home's Current Deferred Revenue is increasing as compared to previous years.
| 2017 | 19.49 Million |
| 2018 | 22.38 Million |
| 2019 | 26.24 Million |
| 2020 | 71.03 Million |
| 2021 | 76.74 Million |
| 2022 | 58.91 Million |
| 2024 | 67.75 Million |
| 2025 | 71.13 Million |
They say the devil is in the details, and when it comes to KB Home, there are plenty of details to consider. With a Price to Sales ratio of 0.73X, the stock appears undervalued compared to industry peers, suggesting potential growth. However, a Probability of Bankruptcy at 11.63% introduces a note of caution for investors. Institutional investors hold a significant 87.60% of shares, indicating strong institutional confidence, yet the short ratio of 5.84X signals some skepticism in the market. As KB Home navigates the ever-changing landscape of the residential construction industry, it will be crucial for the company to manage these challenges effectively to sustain its growth trajectory.
KB Home has 95 percent chance to stay above $66 in 2 months
KB Home's stock is showing encouraging resilience, with a strong chance of staying above $66 in the next two months. This stability is supported by a potential upside of 2.26%, indicating modest gains ahead. For investors, this presents an appealing opportunity, as the combination of stable support and growth potential offers a balanced risk-reward scenario. The stock exhibits low volatility, with a skewness of 0.35 and kurtosis of 2.01. Understanding market volatility trends helps investors time their trades more effectively. By using these indicators, traders can assess KB Home's stock risk relative to market conditions in both rising and falling markets.
Bear markets can increase volatility, impacting stock prices and prompting investors to adjust their portfolios by diversifying as prices decline.As we look ahead to 2025, KB Home stands at a pivotal juncture. With an analyst consensus rating of "Hold," the stock presents a mixed bag of potential and caution. The highest estimated target price of $90.59 suggests room for growth, yet the valuation market value hovers around $64.47, indicating a more conservative outlook. Investors should weigh these factors carefully, considering both the opportunities and risks. While the housing market dynamics and economic conditions will play crucial roles, KB Home's ability to navigate these challenges will ultimately determine whether it can reach new heights or face setbacks. For those considering an investment, keeping a close eye on market trends and company performance will be key to making informed decisions..
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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