NYSE:KBH

Stock Analysis Report

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Executive Summary

KB Home operates as a homebuilding company in the United States. More Details


Snowflake Analysis

Solid track record with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has KB Home's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KBH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: KBH's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

KBH

-2.9%

US Consumer Durables

0.6%

US Market


1 Year Return

0.3%

KBH

20.3%

US Consumer Durables

22.7%

US Market

Return vs Industry: KBH underperformed the US Consumer Durables industry which returned 21.5% over the past year.

Return vs Market: KBH underperformed the US Market which returned 21% over the past year.


Shareholder returns

KBHIndustryMarket
7 Day-3.0%-2.9%0.6%
30 Day6.9%8.3%13.1%
90 Day-6.7%3.0%4.5%
1 Year1.7%0.3%21.7%20.3%25.5%22.7%
3 Year17.4%14.4%14.4%10.1%49.0%39.1%
5 Year172.1%162.1%49.0%39.2%98.3%76.5%

Long-Term Price Volatility Vs. Market

How volatile is KB Home's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KB Home undervalued compared to its fair value and its price relative to the market?

9.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KBH ($34.46) is trading above our estimate of fair value ($9.87)

Significantly Below Fair Value: KBH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KBH is good value based on its PE Ratio (10x) compared to the US Consumer Durables industry average (14.2x).

PE vs Market: KBH is good value based on its PE Ratio (10x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: KBH is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: KBH is good value based on its PB Ratio (1.2x) compared to the US Consumer Durables industry average (1.5x).


Next Steps

Future Growth

How is KB Home forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KBH's forecast earnings growth (21.9% per year) is above the savings rate (2.2%).

Earnings vs Market: KBH's earnings (21.9% per year) are forecast to grow faster than the US market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KBH's revenue (20.7% per year) is forecast to grow faster than the US market (10.3% per year).

High Growth Revenue: KBH's revenue (20.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KBH's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has KB Home performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KBH has high quality earnings.

Growing Profit Margin: KBH's current net profit margins (6.9%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: KBH's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: KBH's earnings growth over the past year (29.1%) exceeds its 5-year average (3.4% per year).

Earnings vs Industry: KBH earnings growth over the past year (29.1%) exceeded the Consumer Durables industry 26%.


Return on Equity

High ROE: KBH's Return on Equity (12.2%) is considered low.


Next Steps

Financial Health

How is KB Home's financial position?


Financial Position Analysis

Short Term Liabilities: KBH's short term assets ($4.7B) exceed its short term liabilities ($748.0M).

Long Term Liabilities: KBH's short term assets ($4.7B) exceed its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: KBH's debt to equity ratio (68.1%) is considered high.

Reducing Debt: KBH's debt to equity ratio has reduced from 160.2% to 68.1% over the past 5 years.

Debt Coverage: KBH's debt is well covered by operating cash flow (41.9%).

Interest Coverage: KBH earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is KB Home current dividend yield, its reliability and sustainability?

1.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KBH's dividend (1.74%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: KBH's dividend (1.74%) is low compared to the top 25% of dividend payers in the US market (4.18%).


Stability and Growth of Payments

Stable Dividend: KBH's dividend payments have been volatile in the past 10 years.

Growing Dividend: KBH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.4%), KBH's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KBH's dividends in 3 years are forecast to be thoroughly covered by earnings (7.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.1yrs

Average management tenure


CEO

Jeff Mezger (64 yo)

14yrs

Tenure

US$13,371,376

Compensation

Mr. Jeffrey T. Mezger, also known as Jeff, has been the Chief Executive Officer and President of KB Home since November 12, 2006 and has been its Chairman since August 17, 2016. As a respected industry voi...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD13.37M) is above average for companies of similar size in the US market ($USD5.20M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Mezger
Chairman14yrsUS$13.37m1.09%
$ 34.0m
Jeff Kaminski
Executive VP & CFO10.42yrsUS$3.73m0.13%
$ 4.1m
Matthew Mandino
Executive VP & COO2.42yrsUS$5.11m0.025%
$ 765.4k
Brian Woram
Executive VP & General Counsel10.33yrsUS$2.66m0.092%
$ 2.9m
Albert Praw
Executive Vice President of Real Estate & Business Development18.83yrsUS$2.80m0.13%
$ 4.2m
William Hollinger
Senior VP & Chief Accounting Officer13.83yrsUS$1.68m0.18%
$ 5.7m
Dan Bridleman
Senior Vice President of Sustainabilityno datano datano data
Jill Peters
Senior Vice President of Investor Relations4.83yrsno datano data
Amit Desai
Senior VP & Chief Marketing Officer1yrno datano data
Thomas Norton
Senior Vice President of Human Resources11.83yrsno datano data
Cory Cohen
Senior Vice President of Tax31.92yrsno datano data
Larry Oglesby
Senior VP of National Operations & President of Central Regionno datano datano data

11.1yrs

Average Tenure

59yo

Average Age

Experienced Management: KBH's management team is seasoned and experienced (11.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Mezger
Chairman14yrsUS$13.37m1.09%
$ 34.0m
Robert Johnson
Independent Director12.33yrsUS$267.00k0.094%
$ 2.9m
Kenneth Jastrow
Independent Director18.92yrsUS$263.00k0.047%
$ 1.5m
Timothy Finchem
Independent Director15.5yrsUS$257.00k0.20%
$ 6.2m
Melissa Lora
Lead Independent Director4yrsUS$302.00k0.0023%
$ 70.5k
Stuart Gabriel
Independent Director4.58yrsUS$255.00k0.039%
$ 1.2m
James Weaver
Independent Director3.08yrsUS$262.00k0.026%
$ 823.1k
Dorene Dominguez
Independent Director3.33yrsUS$260.00k0.023%
$ 724.5k
Thomas Gilligan
Independent Director8.33yrsUS$275.00k0.062%
$ 1.9m
Arthur Collins
Independent Director0.083yrno data0.0022%
$ 69.9k
Michael Wood
Independent Director6.83yrsUS$260.00k0.062%
$ 1.9m
Kevin Eltife
Independent Director0.083yrno data0.0022%
$ 69.9k

4.4yrs

Average Tenure

65yo

Average Age

Experienced Board: KBH's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

KB Home's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KB Home
  • Ticker: KBH
  • Exchange: NYSE
  • Founded: 1957
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$3.120b
  • Shares outstanding: 90.54m
  • Website: https://www.kbhome.com

Number of Employees


Location

  • KB Home
  • 10990 Wilshire Boulevard
  • 7th Floor
  • Los Angeles
  • California
  • 90024
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KBHNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1986
KBHDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1986
KBH *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 1986

Biography

KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. The company builds and sells various homes, including atta...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 23:44
End of Day Share Price2020/12/01 00:00
Earnings2020/08/31
Annual Earnings2019/11/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.