KB Home (KBH)
NYSE:KBH
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KB Home
(NYSE:KBH)
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Rating:60Neutral
Price Target:
$55.00
▲(5.91% Upside)
Action:ReiteratedDate:04/10/26
The score is primarily supported by stable financials and notably strong recent cash generation alongside manageable leverage. Offsetting that, the technical setup is weak (below key moving averages with negative MACD), and valuation appears relatively rich (P/E ~29.8) given margin and revenue normalization. Earnings-call commentary is mixed: operational execution and capital returns are positives, but near-term demand, margin pressure, and reduced delivery outlook temper the outlook.
Positive Factors
Cash generation
Sustained, sizable operating and free cash flow provides durable funding for working capital, land investment and shareholder returns. Strong cash conversion (FCF ~0.91x net income TTM) improves resilience across housing cycles and reduces reliance on external financing.
Negative Factors
Material margin compression
Nearly 500bp margin erosion reflects weaker pricing, higher relative land costs and mix shifts. Even with BTO benefits, restoring prior margin peak will take time and hinges on sustained pricing power, land cost control and improved operating leverage across markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained, sizable operating and free cash flow provides durable funding for working capital, land investment and shareholder returns. Strong cash conversion (FCF ~0.91x net income TTM) improves resilience across housing cycles and reduces reliance on external financing.
Read all positive factors
KB Home (KBH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.23B
Dividend Yield1.76%
Average Volume (3M)1.32M
Price to Earnings (P/E)29.8
Beta (1Y)0.71
Revenue Growth-10.01%
EPS Growth-27.81%
CountryUS
Employees2,384
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)0.52
Shares Outstanding62,648,247
10 Day Avg. Volume1,066,049
30 Day Avg. Volume1,315,406
Financial Highlights & Ratios
PEG Ratio-0.37
Price to Book (P/B)1.12
Price to Sales (P/S)0.70
P/FCF Ratio15.01
Enterprise Value/Market Cap1.58
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit4.82
Enterprise Value/Ebitda10.41
Forecast
1Y Price Target
$56.73Price Target Upside9.24% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)3.28
Revenue Forecast (FY)$5.12B
KB Home Business Overview & Revenue Model
Company Description
KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, ...
How the Company Makes Money
KB Home primarily makes money by selling newly constructed homes to homebuyers. Its main revenue stream is home sale revenue recognized when a home is delivered/closed to the buyer, which reflects the base sales price plus any buyer-selected upgra...
KB Home Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows revenue distribution across different regions, highlighting where KB Home is performing well and identifying areas with growth opportunities or potential risks.
Shows revenue distribution across different regions, highlighting where KB Home is performing well and identifying areas with growth opportunities or potential risks.
Data provided by:
The Fly
The FlyKB Home Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 24, 2026
Earnings Call Sentiment Neutral
The call balanced meaningful operational and structural progress (notably the deliberate shift back to built‑to‑order, material reductions in build times, cost improvements, increased community count, strong buyer credit profiles, and healthy liquidity and buybacks) against clear near‑term financial headwinds (notably a 23% revenue decline, a 10% drop in ASP, ~480 bps margin compression, and a lowered full‑year delivery outlook). Management emphasized a purposeful reset that will depress near‑term deliveries but aims to generate higher margins and more predictable operations in the back half of fiscal 2026. Given the comparable weight of significant operational positives and meaningful financial/market negatives, the tone is cautiously optimistic but pragmatic.Positive Updates
Revenue and EPS Reported
Total revenues of approximately $1.08–$1.10 billion in Q1 and diluted EPS of $0.52; net income of $33 million.
Negative Updates
Sharp Revenue and ASP Decline
Housing revenues declined 23% year‑over‑year; average selling price fell 10% year‑over‑year to $452,000 (3% sequential decline), driven by regional and product mix and market conditions.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and EPS Reported
Total revenues of approximately $1.08–$1.10 billion in Q1 and diluted EPS of $0.52; net income of $33 million.
Read all positive updates
Company Guidance
KB Home guided second-quarter 2026 housing revenues of $1.05–$1.15 billion on 2,250–2,450 deliveries, with housing gross profit margin (assuming no inventory charges) of 15.0%–15.6%, an SG&A ratio of 12.4%–13.0% and an effective tax rate of ~19%; for full-year 2026 the company now expects housing revenues of $4.8–$5.5 billion on 10,000–11,500 deliveries. Management highlighted that built‑to‑order (BTO) sales have climbed to ~68% at end‑February and above 70% in early March with a target of at least 70% BTO deliveries in H2 (BTO typically drives a 300–500 bps margin uplift), BTO build times improved to 108 days, backlog and regional mix (more higher‑ASP Northern California deliveries) should drive H2 margin improvement, and the company plans Q2 share repurchases of $50–$100 million; it closed Q1 with $1.2 billion liquidity ($201M cash, $1.0B revolver), owns/controls ~63,000 lots, had 276 active communities (37 Q1 grand openings; 30–35 planned in Q2), 3,353 homes in process (70% sold) and will refine guidance after the spring selling season.KB Home Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
66
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.92B | 6.24B | 6.93B | 6.41B | 6.90B | 5.72B |
| Gross Profit | 1.06B | 1.18B | 1.48B | 1.39B | 1.69B | 1.26B |
| EBITDA | 491.83M | 595.13M | 888.19M | 807.69M | 1.10B | 723.99M |
| Net Income | 352.66M | 428.79M | 655.02M | 590.18M | 816.67M | 564.75M |
Balance Sheet | ||||||
| Total Assets | 6.70B | 6.72B | 6.94B | 6.65B | 6.65B | 5.84B |
| Cash, Cash Equivalents and Short-Term Investments | 200.53M | 230.44M | 599.19M | 727.34M | 330.20M | 292.14M |
| Total Debt | 1.92B | 1.73B | 1.71B | 1.72B | 2.37B | 1.71B |
| Total Liabilities | 2.85B | 2.82B | 2.88B | 2.84B | 2.99B | 2.82B |
| Stockholders Equity | 3.86B | 3.90B | 4.06B | 3.81B | 3.66B | 3.02B |
Cash Flow | ||||||
| Free Cash Flow | 497.20M | 290.25M | 323.41M | 1.05B | 138.18M | -76.69M |
| Operating Cash Flow | 547.60M | 338.65M | 362.72M | 1.08B | 183.42M | -37.30M |
| Investing Cash Flow | -72.07M | -64.76M | -50.12M | -58.06M | -71.77M | -38.08M |
| Financing Cash Flow | -543.19M | -642.63M | -440.75M | -627.49M | -73.58M | -315.01M |
KB Home Technical Analysis
Neutral
51.93
Price Trends
56.97
Negative
58.64
Negative
59.46
Negative
Market Momentum
-1.26
Negative
44.94
Neutral
78.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KBH, the sentiment is Neutral. The current price of 51.93 is above the 20-day moving average (MA) of 51.57, below the 50-day MA of 56.97, and below the 200-day MA of 59.46, indicating a neutral trend. The MACD of -1.26 indicates Negative momentum. The RSI at 44.94 is Neutral, neither overbought nor oversold. The STOCH value of 78.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KBH.
KB Home Risk Analysis
KB Home disclosed 1 risk factors in its most recent earnings report. KB Home reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KB Home Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.56B | 8.21 | 12.83% | ― | 6.98% | 9.74% | |
74 Outperform | $4.19B | 22.24 | 13.58% | ― | 12.14% | 48.68% | |
71 Outperform | $3.10B | 8.49 | 12.99% | ― | 4.77% | -9.30% | |
70 Outperform | $3.98B | 11.14 | 7.29% | ― | -16.60% | -29.85% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $3.23B | 29.80 | 9.01% | 1.76% | -10.01% | -27.81% | |
60 Neutral | $4.34B | 10.29 | 8.65% | 2.62% | -6.06% | -32.39% |
* Consumer Cyclical Sector Average
KBH
KB Home
54.28
3.49
6.87%
MHO
M/I Homes
126.38
22.48
21.64%
MTH
Meritage
68.07
4.61
7.26%
SKY
Champion Homes
81.33
2.03
2.56%
TPH
Tri Pointe
46.86
17.29
58.47%
TMHC
Taylor Morrison
60.64
5.05
9.08%
KB Home Corporate Events
Executive/Board Changes
KB Home Sets 2025 Incentive Awards for Top Executives
Neutral
Jan 23, 2026
On January 22, 2026, KB Home’s board of directors, through its management development and compensation committee, set the fiscal 2025 annual incentive awards for participants in the company’s incentive compensation program, including i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.