KB Home Stock Analysis, Valuation (NYSE:KBH)

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$25.67 $0.41 (1.57%) KBH stock closing price Jun 18, 2018 (Closing)

Take a look at Amigobulls KB Home stock analysis video. Our KBH analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

KB Home Stock Rating 2.7/5

Amigobulls KBH stock analysis uses latest quarter 2018 Q1 financial data like KB Home revenue growth, profit margins and cash flows. KB Home valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our KB Home stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy KBH stock?

  • Long term revenue growth has been strong with a 5 year compounded annual growth of 20.9.
  • The KB Home stock currently trades at a price to earnings ratio of 12.3, compared to the sector average of 19.7. We rate this as a positive.
  • When compared with the Construction sector average PS ratio of 1, the price-to-sales ratio of 0.5 for KBH stock is attractive.

Should you sell KBH stock?

  • With a debt/equity ratio of 1.27, KB Home is highly leveraged in comparison to -sectordesc- peers.
  • KB Home has a poor return on invested capital of 2.5.
  • The TTM ROE (Return On Equity) for KB Home is not so attractive at 5.2.
  • The company has a negative free cash flow margin of -16.5.

Comments on this video and KB Home stock

Investors can make use of the Amigobulls KB Home stock analysis to ascertain how KBH stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, KB Home revenue growth and profit or net income are two main metrics which help in identifying whether KBH stock is overvalued or undervalued. Investors could make use of KBH technical analysis to check whether the fundamental story is reflected in the market sentiment.