NYSE
KBH
Last Price
US $55.49
KEY FIGURES
MKT CAP
$3.5B
EPS
TTM
$4.37
PEG
TTM
N/M
P/E
TTM
12.69x
P/S
TTM
0.63x
YIELD
1.80%
GROWTH
Revenue Y/Y
8.31%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $55.49
-42.91%
Default assumptions
EBITDA Multiple
Fair Value
Market $55.49
-23.30%
Default assumptions
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
KB Home cash flow to debt ratio of 19.37% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
KB Home's free cash flow has decreased -11.17% from $323.41M last year to $287.28M, signaling decreasing performance
Financial stability - Healthy debt to equity ratio.
KB Home's debt to equity ratio is 0.52, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial risk - Healthy debt to equity ratio development.
KB Home's debt has increased relative to shareholder equity from 0.42 last year to 0.52 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
KB Home has a net debt to EBITDA ratio of 2.54x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
KB Home earns at least as much interest as it pays. Interest obligations are fully covered.
Financial risk - Profit margin growth.
KB Home's profit margin has decreased (-47.69%) in the last year from 9.45% to 4.94%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
KB Home's short-term assets of $6.27G exceed its short-term liabilities of $1.37G
Decreasing performance - ROA.
KB Home's return on assets of 4.02% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
KB Home's return on equity of 7.04%, is lower than 15.00%, indicating bad performance
Decreasing performance - Earnings quality.
KB Home's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
KB Home had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
KB Home has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
KB Home has a free cash flow yield of 8.26%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
KB Home's yearly earnings has decreased -34.54% since last year from $655.02M to $428.79M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
KB Home's yearly revenue has decreased -10.01% since last year from $6.93G to $6.24G, signaling decreasing performance
Decreasing performance - ROIC.
ROIC 4.43% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Decreasing performance - 3-year revenue CAGR.
KB Home's 3-year revenue CAGR of -3.33% is negative, indicating declining revenue over the past 3 years
Increasing performance - Revenue consistency.
KB Home had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
KB Home had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
KB Home is overvalued relative to its fair value price of 31.68 based on Discounted Cash Flow model
Undervalued - Earnings yield.
KB Home has an earnings yield of 7.88%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
KB Home is overvalued relative to its fair value price of 42.56 based on EBITDA multiple model
Undervalued - EV/EBITDA.
KB Home has an EV/EBITDA ratio of 8.42x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
KB Home has no meaningful EPS growth rate; PEG ratio cannot be computed.
Undervalued - P/B ratio.
KB Home has a price-to-book ratio of 0.91x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
KB Home has a price-to-sales ratio of 0.63x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
7.04%
Return on equity
ROIC: 4.43%
Valuation History
13.4X
Price to Earnings
EV/EBITDA: 13.7X
Cash flow
Profit margin
10.67%
(FY vs FY)
Cash flow Y/Y
0.38%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.