KB Home Stock Analysis, Valuation (NYSE:KBH)

Add to My Stocks
$21.12 $0.24 (1.15%) KBH stock closing price Sep 25, 2017 (Closing)
Watch Robo Advisor Video of KBH Stock Analysis
KB Home
Updated on : Sep 25, 2017
previous close
KBH 21.1 (0%)
S&P 500 2496.7 (0%)
Closing Price On: Sep 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Building-Residential-Commercial
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
22.8%
Operating Profit
Operating Margin:
4.9%
Sector Average:
7.5%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.64B
Debt/Equity Ratio:
 1.49
Compared to the industry
Cash Flow
Operating cash flow:
$12.5M
Net Income:
$31.8M
Dividend Yield
KBH dividend yield:
0.57%
PROS      CONS
Recent Growth
Long Term Growth
PE Valuation
PS Valuation
High Debt Burden
Cash Flow
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
KBH PS :
0.5
Industry PS :
0.9
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
3.3%
Return on Equity:
7.2%
Free Cash Flow Margin:
0.9%
Double Tap To Exit Full Screen
0:00
/

KB Home Stock Analysis

46 5 2

View KB Home stock analysis video. This is our analyst opinion covering the buy and sell arguments for KBH stock.

KB Home Stock Rating 2.5/5

Our KB Home stock opinion is based on fundamentals of the company. This KB Home stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy KBH stock?

  • KB Home's revenue growth came in at 23.6% in 2017 Q2.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 22.8%.
  • KBH stock is trading at an earnings multiple of 16.2 which is better than the industry average of 20.4.
  • KBH stock is trading at a favorable price to sales multiple of 0.5 as against the Building-Residential-Commercial industry average multiple of 0.9.

Should you sell KBH stock?

  • KB Home has a debt/equity ratio of  1.49, which is worse than the average in the Construction sector.
  • The company has an operating cash flow which is 0.4 times the net income. This is not a healthy sign.
  • KB Home has a poor return on invested capital of 3.3%.

Comments on this video and KB Home stock