KB Home Stock Analysis, Valuation (NYSE:KBH)
KB Home Stock Analysis
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%.