KB Home Stock Analysis, Valuation (NYSE:KBH)

Add to My Stocks
$29.83 $0.36 (1.19%) KBH stock closing price Feb 23, 2018 (Closing)
Watch Robo Advisor Video of KBH Stock Analysis
KB Home
Updated on : Feb 23, 2018
previous close
KBH 29.8 (0%)
S&P 500 2747.3 (0%)
Closing Price On: Feb 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Building-Residential-Commercial
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
22.9%
Operating Profit
Operating Margin:
6.8%
Sector Average:
7.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$410M
Net Income:
$84.4M
Dividend Yield
KBH dividend yield:
0.4%
PROS      CONS
Recent Growth
Long Term Growth
Cash Flow
FCF Margin
PE Valuation
PS Valuation
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
KBH PS :
0.6
Industry PS :
0.9
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.9%
Return on Equity:
10%
Free Cash Flow Margin:
29.1%
Double Tap To Exit Full Screen
0:00
/

KB Home Stock Analysis

46 5 2

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 3.6/5

Amigobulls KBH stock analysis uses latest quarter 2017 Q4 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?

  • KB Home's revenue growth came in at 17.7% in 2017 Q4.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 22.9%.
  • The company has an operating cash flow which is 4.9 times the net income.
  • KBH stock is trading at an earnings multiple of 16.3 which is better than the industry average of 21.
  • The lower PS ratio 0.6 for KBH stock versus Building-Residential-Commercial industry average of 0.9 is a positive for the company.
  • The company has a healthy free cash flow margin of 29.1%.

Should you sell KBH stock?

  • KB Home has a low ROIC (Return on Invested Capital) of 4.9%.

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.