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