2.44%
4.63%
-12.41%
-20.12%
15.39%
62.75%
83.12%
AI Spotlight on KBH
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.
Market Data
| Last Price | 68.76 |
| Change Percentage | 2.44% |
| Open | 67.7 |
| Previous Close | 67.12 |
| Market Cap ( Millions) | 4962 |
| Volume | 906598 |
| Year High | 89.7 |
| Year Low | 58.15 |
| M A 50 | 71.89 |
| M A 200 | 75.06 |
Financial Ratios
| FCF Yield | 6.52% |
| Dividend Yield | 1.38% |
| ROE | 15.67% |
| Debt / Equity | 35.24% |
| Net Debt / EBIDTA | 132.07% |
| Price To Book | 1.03 |
| Price Earnings Ratio | 7.66 |
| Price To FCF | 15.34 |
| Price To sales | 0.72 |
| EV / EBITDA | 7.21 |
News
- Jan -29 - Why KB Home (KBH) Dipped More Than Broader Market Today
- Jan -29 - Homebuilders Are Drastically Mispriced Given Growth Outlook
- Jan -24 - KB Home Announces the Grand Opening of Its Newest Community in Manvel, Texas
- Jan -24 - KB Home (KBH) Stock Sinks As Market Gains: Here's Why
- Jan -23 - KB Home Declares First Quarter 2025 Dividend
- Jan -22 - KB Home Launches Fresh, Creative Take on Customer Obsession With New Brand Platform, “We See You”
- Jan -19 - The End Of An Era
- Jan -17 - KB Home Announces the Grand Opening of Its Newest Community in Robla, a Prime Sacramento Neighborhood
- Jan -17 - KB Home Announces the Grand Opening of Its Newest Community in Popular Lake Stevens, Washington
- Jan -16 - KB Home Announces the Grand Opening of Its Newest Community in Popular Raleigh, North Carolina
- Jan -16 - KB Home: Neutral Rating Amid Mixed Outlook On Housing Trends
- Jan -15 - 5 Reasons to Be Bullish on Stocks in Early 2025
- Jan -15 - Economy Goes Two-for-Two on Inflation: Stocks to Watch
- Jan -15 - KB Home Q4 Earnings: Good Enough For A Bottom, Not Enough For A Seasonal Trade
- Jan -14 - 3-Stock Lunch: JPMorgan, Robinhood, & KB Home
- Jan -14 - KB Home Stock Gains as Deliveries Surge, Driving Profit Above Estimates
- Jan -14 - KB Home Manages To Beat Q4 Expectations, Outlook 'Remains Challenged' Analysts Warn
- Jan -14 - KB Home's Q4 Earnings & Revenues Beat Estimates, Stock Up
- Jan -14 - Homebuilding Stock Pops on Beat-and-Raise
- Jan -14 - AMD's New Bull, KBH Leads Homebuilder Rally, MA Downgrade & V Upgrade
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Homebuilding - West Coast
Expected Growth : 9.5 %
What the company do ?
Homebuilding - West Coast from KB Home refers to the business segment of KB Home, a US-based homebuilder, that focuses on building and selling homes in the western United States.
Why we expect these perspectives ?
KB Home's 9.5% growth in West Coast homebuilding is driven by strong demand for new homes, fueled by low unemployment, rising wages, and limited housing supply. Additionally, the company's focus on first-time homebuyers, who account for 55% of sales, and its strategic land acquisition and development strategies have contributed to its growth in the region.
Segment n°2 -> Homebuilding - Central
Expected Growth : 9.0 %
What the company do ?
Homebuilding - Central from KB Home refers to the company's homebuilding operations in the central United States, focusing on constructing and selling homes in this region.
Why we expect these perspectives ?
KB Home's Central segment growth of 9.0% is driven by increasing demand for affordable housing, strategic land acquisition, and effective cost management. Additionally, the segment benefits from a strong economy, low unemployment, and favorable demographics in the region, leading to higher sales and revenue growth.
Segment n°3 -> Homebuilding - Southwest
Expected Growth : 10.5 %
What the company do ?
Homebuilding - Southwest from KB Home focuses on building and selling homes in the southwestern United States, offering energy-efficient and personalized living spaces.
Why we expect these perspectives ?
Strong demand in the Southwest region, driven by job growth, low unemployment, and migration to affordable markets. KB Home's focus on first-time homebuyers and entry-level products resonates with the region's demographics. Additionally, the company's strategic land acquisition and development strategies have positioned it for success in this growing market.
Segment n°4 -> Homebuilding - Southeast
Expected Growth : 10.0 %
What the company do ?
Homebuilding - Southeast from KB Home refers to the company's homebuilding operations in the southeastern United States, offering a range of new homes and communities.
Why we expect these perspectives ?
KB Home's Southeast homebuilding segment growth is driven by strong demand in Florida and the Carolinas, fueled by population growth, job creation, and migration to these regions. Additionally, the company's focus on first-time homebuyers and affordable pricing has resonated with customers, contributing to the 10.0% growth.
Segment n°5 -> Financial Services
Expected Growth : 8.0 %
What the company do ?
KB Home's Financial Services offers mortgage and title services, insurance products, and other financial solutions to homebuyers, making the homebuying process easier and more convenient.
Why we expect these perspectives ?
KB Home's 8.0% growth in Financial Services is driven by increasing mortgage banking revenue, fueled by rising home sales and higher average selling prices. Additionally, the company's strategic partnerships with mortgage providers and its own mortgage banking operations contribute to the growth. Furthermore, KB Home's focus on providing a comprehensive homebuying experience, including title and insurance services, also supports the segment's expansion.
Kb Home Products
| Product Range | What is it ? |
|---|---|
| Single-Family Homes | KB Home offers a wide range of single-family homes, from starter homes to luxury estates, designed to meet the needs of various lifestyles and budgets. |
| Townhomes | KB Home's townhomes offer a low-maintenance lifestyle with shared walls, perfect for those who want the benefits of homeownership without the upkeep of a single-family home. |
| Condominiums | KB Home's condominiums provide a carefree lifestyle with shared amenities and services, ideal for those who want to own their home without the burden of exterior maintenance. |
| Active Adult Communities | KB Home's active adult communities are designed for adults 55+, offering a resort-style lifestyle with amenities and services tailored to this demographic. |
| Urban Infill Communities | KB Home's urban infill communities offer new homes in established neighborhoods, close to urban centers, public transportation, and local amenities. |
KB Home's Porter Forces
Threat Of Substitutes
KB Home faces moderate threat from substitutes, as customers have limited alternatives to traditional single-family homes. However, the rise of alternative housing options, such as apartments and condos, poses a moderate threat.
Bargaining Power Of Customers
KB Home's customers have low bargaining power due to the company's strong brand reputation and limited competition in the homebuilding industry.
Bargaining Power Of Suppliers
KB Home's suppliers, such as lumber and material providers, have moderate bargaining power due to the company's large scale of operations and diversified supplier base.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the homebuilding industry, including significant capital requirements and regulatory hurdles.
Intensity Of Rivalry
The homebuilding industry is highly competitive, with many established players competing for market share. KB Home faces intense rivalry from competitors such as Lennar, D.R. Horton, and PulteGroup.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 31.43% |
| Debt Cost | 8.15% |
| Equity Weight | 68.57% |
| Equity Cost | 12.63% |
| WACC | 11.22% |
| Leverage | 45.83% |
KB Home : Quality Control
KB Home passed 8 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MTH | Meritage Homes Corporation, together with its subsidiaries, designs and builds single-family homes in the United States. The company operates through two segments, Homebuilding and Financial Services. It acquires and develops … |
| TOL | Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. … |
| MHO | M/I Homes, Inc., together with its subsidiaries, operates as a builder of single-family homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. The company operates through … |
| TMHC | Taylor Morrison Home Corporation, together with its subsidiaries, operates as a public homebuilder in the United States. The company designs, builds, and sells single and multi-family detached and attached homes; … |
| CCS | Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Toll Brothers
A-Score
1-Year Total Return ->
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Meritage Homes
A-Score
1-Year Total Return ->
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KB Home
A-Score
1-Year Total Return ->
4
Century Communities
A-Score
1-Year Total Return ->
5
Taylor Morrison
A-Score
1-Year Total Return ->
6
