KBHKB Home presents a fundamentally sound investment with steady growth potential in the housing market. While recent performance has been mixed, its valuation remains attractive, and technical indicators suggest a neutral to slightly bullish short-term outlook.
The company operates within the essential but cyclical housing sector. Growth is influenced by broader economic conditions, interest rates, and demographic trends rather than disruptive technological shifts.
KB Home demonstrates solid profitability and a healthy balance sheet. Its valuation metrics, such as P/E and P/S, are attractive relative to its historical performance and current earnings power.
The stock is trading near its 52-week low, but recent performance shows some recovery. Technical indicators are mixed, with some suggesting potential upward movement, while others indicate ongoing pressure.
| Factor | Score |
|---|---|
| Housing Market Demand | 75 |
| Interest Rate Sensitivity | 40 |
| Regional Diversification | 70 |
| Homebuyer Demographics | 80 |
| Regulatory Environment | 60 |
| Factor | Score |
|---|---|
| Valuation | 90 |
| Profitability | 85 |
| Growth | 70 |
| Balance Sheet Health | 80 |
| Cash Flow | 85 |
| Dividend Yield | 75 |
| Factor | Score |
|---|---|
| Trend Analysis | 65 |
| Momentum | 55 |
| Support & Resistance | 70 |
| Volume | 75 |
Attractive Valuation Metrics
The current P/E ratio of 6.8 (TTM) and 5.9 (2024 est.) is significantly lower than the historical average and industry peers, suggesting potential undervaluation. The Price-to-Sales (P/S) ratio of 0.6 (TTM) and 0.6 (2024 est.) is also very attractive.
Strong Net Profitability
The company has demonstrated consistent profitability with a Net Margin of 9.5% for 2024Q4 and 9.2% for 2023Q4, indicating efficient conversion of revenue to net income.
Recent Performance Decline
The stock has experienced a significant decline over the past year (-31.48%) and YTD (-11.78%), indicating recent underperformance relative to broader market trends or previous periods.
Significant Debt Load
The company has a substantial debt of $1,712,538,000 (2024Q4), which, when considered against its cash equivalents of $599,193,000, presents a notable leverage that could be a concern during economic downturns.
August 2025
7
Ex-Dividend Date
August 2025
21
Next Dividend Date
September 2025
24
Next Earnings Date
H: $1.58
A: $1.51
L: $1.45
H: 1.64B
A: 1.59B
L: 1.56B
KB Home operates as a homebuilding company in the United States. The company operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells a variety of homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers. The company also provides financial services, such as mortgage banking services comprising residential consumer mortgage loan originations to homebuyers; property and casualty insurance services, as well as earthquake, flood, and personal property insurance products to homebuyers; and title services. It conducts operations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas, and Washington. The company was formerly known as Kaufman and Broad Home Corporation and changed its name to KB Home in January 2001. KB Home was founded in 1957 and is based in Los Angeles, California.
61.33 USD
The 39 analysts offering 1 year price forecasts for KBH have a max estimate of 80.00 and a min estimate of 49.00.