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 | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | 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 12.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.43. 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 7.79. The firm last dividend was issued on the 14th of November 2024. 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 88.0% of the company shares are owned by institutional investors | |
| Latest headline from bizjournals.com: Lennar offers aggressive discounts ahead of fiscal year-end |
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 |
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 | Third Point, Llc | 2024-06-30 | 2.1 M | Geode Capital Management, Llc | 2024-06-30 | 1.9 M | American Century Companies Inc | 2024-09-30 | 1.5 M | Arrowstreet Capital Limited Partnership | 2024-06-30 | 1.3 M | Lsv Asset Management | 2024-09-30 | 1.1 M | Allianz Asset Management Ag | 2024-06-30 | 1.1 M | Northern Trust Corp | 2024-09-30 | 1 M | Aqr Capital Management Llc | 2024-06-30 | 929.6 K | Jacobs Levy Equity Management, Inc. | 2024-06-30 | 925.9 K | Blackrock Inc | 2024-06-30 | 10.7 M | Vanguard Group Inc | 2024-09-30 | 7.3 M |
KB Home's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 5.72 B.Market Cap |
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KB Home's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.10 | 0.11 | |
| Return On Capital Employed | 0.13 | 0.08 | |
| Return On Assets | 0.08 | 0.08 | |
| Return On Equity | 0.18 | 0.09 |
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 0.0716 % which means that on every $100 spent on assets, it made $0.0716 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1573 %, implying that it generated $0.1573 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 0.08, 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 0.11, while Total Assets are projected to decrease to under 3.8 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 42.42 | 44.54 | |
| Tangible Book Value Per Share | 42.42 | 44.54 | |
| Enterprise Value Over EBITDA | 7.41 | 7.78 | |
| Price Book Value Ratio | 1.27 | 1.64 | |
| Enterprise Value Multiple | 7.41 | 7.78 | |
| Price Fair Value | 1.27 | 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.
Dividend Yield 0.0129 | Forward Dividend Yield 0.0129 | Forward Dividend Rate 1 | Beta 1.815 |
Basic technical analysis of KBH Stock
As of the 22nd of November, KB Home owns the Mean Deviation of 1.55, market risk adjusted performance of (0.02), and Information Ratio of (0.06). 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.
Jeffrey Mezger over a month ago Acquisition by Jeffrey Mezger of 165307 shares of KB Home at 14.92 subject to Rule 16b-3 | ||
Albert Praw over three months ago Disposition of 22772 shares by Albert Praw of KB Home at 63.96 subject to Rule 16b-3 | ||
Robert Mcgibney over three months ago Disposition of 14781 shares by Robert Mcgibney of KB Home at 60.86 subject to Rule 16b-3 | ||
Dorene Dominguez over six months ago Acquisition by Dorene Dominguez of 2895 shares of KB Home subject to Rule 16b-3 | ||
Brian Woram over six months ago Exercise or conversion by Brian Woram of 10000 shares of KB Home subject to Rule 16b-3 | ||
Brian Woram over a year ago Bona fide gift to Brian Woram of 2000 shares of KB Home subject to Section 16 | ||
Brian Woram over a year ago Exercise or conversion by Brian Woram of 40000 shares of KB Home subject to Rule 16b-3 | ||
Brian Woram over a year ago Bona fide gift to Brian Woram of 2100 shares of KB Home subject to Section 16 |
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.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| 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 52 Corp BondUS55336VAL45 | 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 | (0.0006) | |||
| Market Risk Adjusted Performance | (0.02) | |||
| Mean Deviation | 1.55 | |||
| Coefficient Of Variation | (10,916) | |||
| Standard Deviation | 2.04 | |||
| Variance | 4.17 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.11) | |||
| Total Risk Alpha | (0.26) | |||
| Treynor Ratio | (0.03) | |||
| Maximum Drawdown | 10.3 | |||
| Value At Risk | (3.31) | |||
| Potential Upside | 3.05 | |||
| Skewness | (0.13) | |||
| Kurtosis | 0.5465 |
| Risk Adjusted Performance | (0.0006) | |||
| Market Risk Adjusted Performance | (0.02) | |||
| Mean Deviation | 1.55 | |||
| Coefficient Of Variation | (10,916) | |||
| Standard Deviation | 2.04 | |||
| Variance | 4.17 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.11) | |||
| Total Risk Alpha | (0.26) | |||
| Treynor Ratio | (0.03) | |||
| Maximum Drawdown | 10.3 | |||
| Value At Risk | (3.31) | |||
| Potential Upside | 3.05 | |||
| Skewness | (0.13) | |||
| Kurtosis | 0.5465 |
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
F4 | 15th of November 2024 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 | 15th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 11th of October 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
10Q | 10th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | 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 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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.
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.