A Business at a Glance
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KB Home is one of the largest and most trusted homebuilders in the U.S. We have been building homes for nearly 70 years, with over 700,000 homes built since our founding in 1957. We build a variety of new homes, including attached and detached single-family residential homes, townhomes and condominiums, designed primarily for first-time and first move-up, as well as second move-up and active adult, homebuyers. We offer homes in development communities, at urban in-fill locations and as part of mixed-use projects. Our homebuilding operations represent the majority of our business, accounting for 99.6% of our total revenues in 2025. Our financial services operations, which accounted for the remaining .4% of our total revenues in 2025, offer various insurance products to our homebuyers in the markets where we build homes and provide title services in certain of those markets.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 6.2B | 6.2B | 6.9B | 6.4B | 6.9B | 5.7B |
| Net Income | 426M | 426M | 650M | 586M | 812M | 562M |
| EPS | $6.15 | $6.15 | $8.45 | $7.03 | $9.09 | $6.01 |
| Free Cash Flow | 287M | 287M | 323M | 1.0B | 138M | -77M |
| ROIC | 11.6% | 12.0% | 19.9% | 18.3% | 27.0% | 24.1% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.00 | 0.71 | 0.71 | 0.74 | 0.82 | 0.93 |
| Dividends/Share | $0.99 | $1.00 | $0.95 | $0.70 | $0.60 | $0.58 |
| Operating Income | 552M | 552M | 846M | 767M | 1.1B | 700M |
| Operating Margin | 8.8% | 8.8% | 12.2% | 12.0% | 15.5% | 12.2% |
| ROE | 10.9% | 10.7% | 16.5% | 15.7% | 24.3% | 19.8% |
| Shares Outstanding | 69M | 69M | 77M | 83M | 89M | 94M |
KB HOME passes 7 of 9 quality checks, indicating strong fundamentals.
KB HOME trades at 8.5x trailing earnings, compared to its 15-year median P/E of 10.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 11.4x vs a median of 11.0x. The company's 5-year average ROIC is 20.3%. Total shareholder yield (dividends + buybacks) is 16.9%. At current prices, the estimated annualized return to fair value is +16.5%.
KB HOME (KBH) has a current P/E ratio of 8.5, compared to its historical median P/E of 10.5. The stock is currently considered Fair based on its historical valuation range.
KB HOME (KBH) has a 5-year average return on invested capital (ROIC) of 20.3%. This indicates strong capital allocation and a potential competitive advantage.
KB HOME (KBH) has a market capitalization of $3.6B. It is classified as a mid-cap stock.
Yes, KB HOME (KBH) pays a dividend with a trailing twelve-month yield of 1.90%. The company also returns capital through share buybacks, with a buyback yield of 15.02%.
Based on historical P/E analysis, KB HOME (KBH) appears fair. The current P/E of 8.5 is 19% below its historical median of 10.5. The estimated fair value CAGR (P/E method) is 24.3%.
KB HOME (KBH) operates in the Operative Builders industry, within the Industrials sector.
KB HOME (KBH) reported annual revenue of $6.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
KB HOME (KBH) has a net profit margin of 6.8%. This is a modest margin.
KB HOME (KBH) generated $287 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
KB HOME (KBH) has a debt-to-equity ratio of 0.71. This indicates moderate leverage.
KB HOME (KBH) reported earnings per share (EPS) of $6.15 in its most recent fiscal year.
KB HOME (KBH) has a return on equity (ROE) of 10.7%. This indicates moderate shareholder returns.
The Ledger Terminal provides 15 years of financial data for KB HOME (KBH), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
KB HOME (KBH) has a book value per share of $56.30, based on its most recent annual SEC filing.