KB Home (KBH) AI Stock Analysis

• Market Cap: $4.25B
• Dividend Yield: 1.54%
• Average Volume (3M): 828.40K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.74
• Revenue Growth: -0.95%
• EPS Growth: -9.22%
• Country: US
• Employees: 2,384
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 1.61
• Shares Outstanding: 64,764,690
• 10 Day Avg. Volume: 989,596
• 30 Day Avg. Volume: 828,399
• PEG Ratio: 0.47
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 19.12
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 4.56
• Enterprise Value/Ebitda: 8.62
• 1Y Price Target: $67.78
• Price Target Upside: 4.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 6.03
• Revenue Forecast (FY): $5.72B

• Rating: 76 Outperform
• Price Target: $71.00 ▲(9.23% Upside)

KB Home's overall stock score reflects a strong financial position with attractive valuation metrics and positive corporate events. While technical indicators are neutral, the company's strategic focus on operational efficiencies and shareholder returns provides a positive outlook. Challenges in revenue growth and regional market pressures are notable but are being addressed through strategic initiatives.

Positive Factors

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and shareholder returns.

Balance Sheet Health

A robust balance sheet with low leverage supports long-term stability and the ability to withstand economic fluctuations.

Operational Efficiency

Improved operational efficiency reduces costs and enhances customer satisfaction, strengthening competitive positioning.

Negative Factors

Revenue Growth Challenges

Slowing revenue growth can limit future earnings potential and impact the company's ability to scale effectively.

Order and Backlog Decline

A decline in orders and backlog indicates potential future revenue pressure and challenges in maintaining sales momentum.

Market-Specific Challenges

Regional market pressures can hinder sales growth and profitability, requiring strategic adjustments to maintain competitiveness.

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, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers. The company also offers financial services, such as insurance products and title services. It has operations in Arizona, California, Colorado, Florida, Nevada, North Carolina, Texas, and Washington. The company was formerly known as Kaufman and Broad Home Corporation and changed its name to KB Home in January 2001. KB Home was founded in 1957 and is headquartered in Los Angeles, California.

How the Company Makes Money

KB Home generates revenue primarily through the sale of newly constructed homes to individual buyers. The company earns money by acquiring land, developing residential communities, and constructing homes, which are then sold to consumers at a profit. Key revenue streams include the sale of homes, which accounts for the majority of its revenue, as well as revenue from homebuyer options and upgrades during the purchasing process. Additionally, KB Home benefits from strategic partnerships with suppliers and subcontractors that help manage construction costs and improve efficiency. Their focus on energy-efficient homes and sustainability also attracts environmentally conscious buyers, further enhancing their market position and contributing to revenue growth.

KB Home Financial Statement Overview

Summary

KB Home demonstrates a solid financial position with strong profitability and a stable balance sheet. The company faces challenges in revenue growth, and profitability margins have slightly declined. However, the balance sheet remains strong with low leverage and good equity levels. Cash flow has improved significantly, though efficiency in cash conversion could be enhanced.

Income Statement

KB Home's income statement shows a stable performance with a slight decline in revenue growth rate at -1.98% TTM. The gross profit margin is healthy at 19.89%, though it has decreased from previous years. Net profit margin stands at 7.92%, indicating profitability but a decrease from prior periods. The EBIT and EBITDA margins are also solid at 9.95% and 10.53% respectively, though they have seen a slight decline. Overall, the company maintains profitability but faces challenges in revenue growth.

Balance Sheet

The balance sheet of KB Home reflects a strong equity position with a debt-to-equity ratio of 0.42 TTM, showing a decrease in leverage compared to previous years. Return on equity is at 12.32%, indicating efficient use of equity to generate profits, though it has decreased from past performance. The equity ratio is robust, suggesting a stable financial structure. Overall, the balance sheet is strong with manageable debt levels and solid equity.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 441.83% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.29, showing a moderate conversion of income to cash. The free cash flow to net income ratio is 0.60, reflecting a good level of cash flow relative to net income. Despite the positive cash flow growth, the ratios suggest room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.54B	6.93B	6.41B	6.90B	5.72B	4.18B
Gross Profit	1.30B	1.48B	1.37B	1.69B	1.26B	802.72M
EBITDA	688.84M	888.19M	778.95M	1.10B	723.99M	392.44M
Net Income	517.87M	655.02M	590.18M	816.67M	564.75M	296.24M
Balance Sheet
Total Assets	6.99B	6.94B	6.65B	6.65B	5.84B	5.36B
Cash, Cash Equivalents and Short-Term Investments	330.59M	599.19M	727.34M	330.20M	290.76M	681.19M
Total Debt	1.94B	1.71B	1.72B	1.87B	1.71B	1.78B
Total Liabilities	2.31B	2.88B	2.84B	2.99B	2.82B	2.69B
Stockholders Equity	4.68B	4.06B	3.81B	3.66B	3.02B	2.67B
Cash Flow
Free Cash Flow	349.79M	323.41M	1.05B	138.18M	-76.69M	281.84M
Operating Cash Flow	394.48M	362.72M	1.08B	183.42M	-37.30M	310.68M
Investing Cash Flow	-54.22M	-50.12M	-58.06M	-71.77M	-38.08M	-26.56M
Financing Cash Flow	-383.66M	-440.75M	-627.49M	-73.58M	-315.01M	-56.44M

KB Home Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KBH, the sentiment is Positive. The current price of 65 is above the 20-day moving average (MA) of 62.72, above the 50-day MA of 61.79, and above the 200-day MA of 58.28, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 58.47 is Neutral, neither overbought nor oversold. The STOCH value of 78.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KBH.

KB Home Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKY	78 Outperform	$4.91B	22.72	14.37%	―	12.14%	48.68%
TMHC	76 Outperform	$6.12B	7.49	14.31%	―	6.98%	9.74%
KBH	76 Outperform	$4.25B	9.20	13.04%	1.54%	-0.95%	-9.22%
MHO	75 Outperform	$3.55B	7.92	15.76%	―	4.77%	-9.30%
TPH	73 Outperform	$2.90B	9.95	9.47%	―	-16.60%	-29.85%
MTH	69 Neutral	$5.07B	9.61	10.50%	2.34%	-6.06%	-32.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

KB Home Corporate Events

KB Home Secures New $1.2 Billion Credit Line

On November 12, 2025, KB Home entered into a new revolving credit agreement with Bank of America, N.A., allowing for loans up to $1.2 billion, potentially increasing to $1.7 billion with additional commitments. This new facility replaces a previous agreement with Citibank, N.A., which had a commitment of up to $1.09 billion, and was terminated without penalties, reflecting KB Home’s ongoing financial management and strategic banking relationships.

KB Home Announces $1 Billion Share Repurchase

On October 27, 2025, KB Home announced a new $1 billion share repurchase authorization, replacing a prior one. This move underscores the company’s strategy of balanced capital allocation, emphasizing both growth investment and returning capital to shareholders. Since 2021, KB Home has repurchased over $1.5 billion in shares, highlighting its commitment to shareholder value and industry leadership in repurchasing market capitalization.

KB Home Approves Long-Term Incentive Awards for Executives

On October 9, 2025, KB Home‘s board of directors approved long-term incentive awards for its named executive officers under the Amended and Restated KB Home 2014 Equity Incentive Plan. These awards, consisting of performance-based restricted stock units (PSUs), are contingent on achieving specific financial performance metrics over a three-year period starting December 1, 2025. The performance metrics include cumulative adjusted earnings per share, average adjusted return on invested capital, and revenue growth relative to peers. The awards are designed to align executive compensation with company performance, but if performance thresholds are not met, recipients will not receive shares or cash dividends.