A Business at a Glance
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KB HOME
KBH
$3.9B
Mkt Cap
$56.76
+2.05%
KB HOME (KBH) has a current P/E ratio of 9.2, 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 1.87%. The company also returns capital through share buybacks, with a buyback yield of 15.22%.
Based on historical P/E analysis, KB HOME (KBH) appears fair. The current P/E of 9.2 is 12% below its historical median of 10.5. The estimated fair value CAGR (P/E method) is 22.1%.
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 is one of the largest homebuilders in the United States, having built over 700,000 homes since its founding in 1957. The company operates across nine states in 49 major markets organized into four geographic segments—West Coast, Southwest, Central, and Southeast—building attached and detached single-family homes, townhomes, and condominiums primarily for first-time, first move-up, and active adult homebuyers through both development communities and urban infill locations. The core business strategy, KB Edge, focuses on expanding within the current geographic footprint to achieve a top-five market position in each served market through a systematic, fact-based approach grounded in understanding consumer preferences and price-to-value perceptions. The company's Built to Order (BTO) model is central to its competitive differentiation, allowing homebuyers to customize structural and design choices, which creates strong emotional attachment and provides KB Home with visibility into future deliveries, improved production efficiency, and better cost structures compared to speculative inventory homes. Land strategy emphasizes acquiring entitled parcels in attractive submarkets with favorable long-term economic and population growth, typically targeting one- to three-year supplies of land or lots per product line in parcels of 50 to 250 lots. Financial services operations, representing less than 1% of revenues, provide insurance and title services to homebuyers and mortgage banking services through an unconsolidated joint venture, KBHS Home Loans, which offers residential mortgage loan originations and higher customer satisfaction levels for buyers using the joint venture lender.
【Backlog-driven margin recovery】 Management expects sequential improvement in deliveries, revenues, and gross margins through the second half of fiscal 2026 and into fiscal 2027, supported by a growing backlog of sold, not-yet-started homes that provides visibility and predictability in the construction cycle. The company anticipates meaningful gross margin expansion driven by increased operating leverage, a higher proportion of built-to-order homes delivered, and a favorable mix shift toward higher-price, higher-margin West Coast communities, particularly in Northern California, where communities are now selling and deliveries are ramping. Management remains optimistic about the long-term housing market, supported by favorable demographics and ongoing structural undersupply of homes, while acknowledging the current difficult market environment and managing through affordability concerns and cautious consumer behavior. The company is maintaining land investments at levels supporting current growth projections, continuing share repurchases and quarterly dividends, and planning the relocation of its corporate headquarters to Tempe, Arizona in 2027.
| Metric | Target | Period |
|---|---|---|
| Third quarter homes delivered | 2,600–2,800 | Q3 FY2026 |
| Third quarter housing revenues | $1.2 billion–$1.35 billion | Q3 FY2026 |
| Third quarter housing gross profit margin | 16%–16.6% | Q3 FY2026 |
| Full year 2026 homes delivered | 10,500–11,000 | FY2026 |
| Full year 2026 housing revenues | $4.9 billion–$5.3 billion | FY2026 |
| Full year 2026 housing gross profit margin | 16.1%–16.5% | FY2026 |
| Third quarter ending community count | 270–280 | Q3 FY2026 |
Third quarter homes delivered (Q3 FY2026): “Based on our current outlook, we expect third quarter homes delivered to range from 2,600-2,800”
Third quarter housing revenues (Q3 FY2026): “and our housing revenues to range from $1.2 billion-$1.35 billion”
Third quarter housing gross profit margin (Q3 FY2026): “We are forecasting our housing gross profit margin for the 2026 third quarter in the range of 16%-16.6%”
Full year 2026 homes delivered (FY2026): “For our homes delivered, we are maintaining the same midpoint while narrowing the expected range to 10,500-11,000 homes”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.9B | 6.2B | 6.9B | 6.4B | 6.9B | 5.7B |
| Net Income | 351M | 426M | 650M | 586M | 812M | 562M |
| EPS | $5.15 | $6.15 | $8.45 | $7.03 | $9.09 | $6.01 |
| Free Cash Flow | 494M | 287M | 323M | 1.0B | 138M | -77M |
| ROIC | 0.0% | 12.0% | 19.9% | 18.3% | 27.0% | 24.1% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.08 | 0.71 | 0.71 | 0.74 | 0.82 | 0.93 |
| Dividends/Share | $1.06 | $1.00 | $0.95 | $0.70 | $0.60 | $0.58 |
| Operating Income | 0 | 552M | 846M | 767M | 1.1B | 700M |
| Operating Margin | 0.0% | 8.8% | 12.2% | 12.0% | 15.5% | 12.2% |
| ROE | 9.1% | 10.7% | 16.5% | 15.7% | 24.3% | 19.8% |
| Shares Outstanding | 63M | 69M | 77M | 83M | 89M | 94M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.4B | 3.0B | 3.6B | 4.4B | 4.5B | 4.6B | 4.2B | 5.7B | 6.9B | 6.4B | 6.9B | 6.2B | 5.9B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 288M | 343M | 389M | 426M | 444M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EBIT | 116M | 139M | 152M | 283M | 346M | 347M | 363M | 700M | 1.1B | 767M | 846M | 552M | 0 |
| Op. Margin | 4.8% | 4.6% | 4.2% | 6.5% | 7.6% | 7.6% | 8.7% | 12.2% | 15.5% | 12.0% | 12.2% | 8.8% | 0.0% |
| Net Income | 916M | 84M | 105M | 179M | 169M | 267M | 295M | 562M | 812M | 586M | 650M | 426M | 351M |
| Net Margin | 38.1% | 2.8% | 2.9% | 4.1% | 3.7% | 5.9% | 7.0% | 9.8% | 11.8% | 9.1% | 9.4% | 6.8% | 5.9% |
| Non-Recurring | 38M | 8.0M | 50M | 21M | 26M | 14M | 23M | 9.9M | 24M | 0 | 13M | 16M | 16M |
| Returns on Capital | |||||||||||||
| ROIC | 85.9% | 7.8% | 9.5% | 15.1% | 15.3% | 15.6% | 15.1% | 24.1% | 27.0% | 18.3% | 19.9% | 12.0% | 0.0% |
| ROE | 85.9% | 5.1% | 6.2% | 9.8% | 8.4% | 12.0% | 11.7% | 19.8% | 24.3% | 15.7% | 16.5% | 10.7% | 9.1% |
| ROA | 23.0% | 1.7% | 2.1% | 3.5% | 3.3% | 5.3% | 5.7% | 10.0% | 13.0% | 8.8% | 9.6% | 6.3% | 5.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | -631M | 181M | 189M | 513M | 222M | 251M | 311M | -37M | 183M | 1.1B | 363M | 336M | 545M |
| Free Cash Flow | -636M | 177M | 184M | 505M | 214M | 211M | 282M | -77M | 138M | 1.0B | 323M | 287M | 494M |
| Owner Earnings | -642M | 161M | 168M | 496M | 203M | 172M | 221M | -135M | 76M | 964M | 239M | 186M | 395M |
| CapEx | 5.8M | 4.7M | 4.8M | 8.1M | 7.4M | 40M | 29M | 39M | 45M | 35M | 39M | 48M | 50M |
| Maint. CapEx | 2.4M | 3.4M | 3.6M | 2.8M | 2.5M | 60M | 68M | 69M | 78M | 84M | 90M | 104M | 105M |
| Growth CapEx | 3.4M | 1.3M | 1.1M | 5.3M | 4.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 2.4M | 3.4M | 3.6M | 2.8M | 2.5M | 60M | 68M | 69M | 78M | 84M | 90M | 104M | 105M |
| CapEx/OCF | N/A | 2.6% | 2.5% | 1.6% | 3.3% | 16.1% | 9.3% | N/A | 24.7% | 3.3% | 10.8% | 14.4% | 9.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 9.0M | 9.2M | 8.6M | 8.6M | 8.9M | 20M | 38M | 54M | 52M | 57M | 72M | 69M | 67M |
| Dividend Yield | 0.6% | 0.7% | 0.7% | 0.5% | 0.4% | 0.9% | 1.4% | 1.5% | 1.8% | 1.6% | 1.3% | 1.7% | 1.9% |
| Share Buybacks | 546K | 567K | 86M | 0 | 35M | 0 | 0 | 188M | 150M | 411M | 354M | 541M | 541M |
| Buyback Yield | 0.0% | 0.0% | 6.5% | N/A | 1.8% | N/A | N/A | 5.1% | 5.8% | 9.7% | 5.6% | 12.1% | 15.2% |
| Stock-Based Comp | 9.1M | 17M | 17M | 15M | 16M | 18M | 22M | 29M | 29M | 35M | 34M | 46M | 45M |
| Debt Repayment | 0 | 200M | 0 | 270M | 300M | 986M | 0 | 455M | 704M | 0 | 0 | 9.9M | 9.9M |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 99M |
| Cash & Equiv. | 359M | 560M | 593M | 721M | 575M | 455M | 683M | 292M | 330M | 727M | 599M | 230M | 202M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 301M |
| Debt/Equity | 1.98 | 2.01 | 1.98 | 1.62 | 1.43 | 1.10 | 1.01 | 0.93 | 0.82 | 0.74 | 0.71 | 0.71 | 0.08 |
| Interest Coverage | 3.8 | 6.3 | 25.8 | 455.6 | N/A | N/A | 419.6 | 98.7 | 197.5 | N/A | N/A | N/A | N/A |
| Equity | 1.6B | 1.7B | 1.7B | 1.9B | 2.1B | 2.4B | 2.7B | 3.0B | 3.7B | 3.8B | 4.1B | 3.9B | 3.9B |
| Total Assets | 4.8B | 5.1B | 5.1B | 5.0B | 5.1B | 5.0B | 5.4B | 5.8B | 6.7B | 6.6B | 6.9B | 6.7B | 6.7B |
| Total Liabilities | 3.2B | 3.4B | 3.4B | 3.1B | 3.0B | 2.6B | 2.7B | 2.8B | 3.0B | 2.8B | 2.9B | 2.8B | -148M |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 1.4B | 1.5B | 1.6B | 1.7B | 1.9B | 2.2B | 1.9B | 2.4B | 3.1B | 3.7B | 3.3B | 3.6B | 3.6B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 667M |
| Per Share Data | |||||||||||||
| EPS | 9.25 | 0.85 | 1.12 | 1.85 | 1.71 | 2.85 | 3.13 | 6.01 | 9.09 | 7.03 | 8.45 | 6.15 | 5.15 |
| Owner EPS | -6.49 | 1.62 | 1.79 | 5.11 | 2.05 | 1.84 | 2.34 | -1.45 | 0.85 | 11.57 | 3.10 | 2.68 | 6.31 |
| Book Value | 16.12 | 17.04 | 18.37 | 19.86 | 21.07 | 25.42 | 28.31 | 32.28 | 40.96 | 45.72 | 52.77 | 56.30 | 61.53 |
| Cash Flow/Share | -6.37 | 1.83 | 2.01 | 5.29 | 2.24 | 2.68 | 3.30 | -0.40 | 2.05 | 12.99 | 4.71 | 4.84 | 7.27 |
| Dividends/Share | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.22 | 0.40 | 0.58 | 0.60 | 0.70 | 0.95 | 1.00 | 1.06 |
| Shares Out. | 99.0M | 99.2M | 93.8M | 97.0M | 99.1M | 93.7M | 94.2M | 93.5M | 89.4M | 83.3M | 76.9M | 69.3M | 62.6M |
| Valuation | |||||||||||||
| P/E Ratio | 1.7 | 14.6 | 12.8 | 14.6 | 11.2 | 11.1 | 10.5 | 6.6 | 3.2 | 7.2 | 9.6 | 10.4 | 11.0 |
| P/FCF | N/A | 7.0 | 7.3 | 5.2 | 8.9 | 14.1 | 11.0 | N/A | 18.7 | 4.0 | 19.3 | 15.5 | 7.2 |
| EV/EBIT | 29.3 | 19.6 | 18.4 | 12.4 | 8.2 | 11.6 | 11.1 | 7.3 | 4.0 | 7.2 | 9.7 | 11.7 | N/A |
| Price/Book | 1.0 | 0.7 | 0.8 | 1.4 | 0.9 | 1.3 | 1.2 | 1.2 | 0.7 | 1.1 | 1.5 | 1.1 | 0.9 |
| Price/Sales | 0.6 | 0.4 | 0.3 | 0.4 | 0.5 | 0.5 | 0.7 | 0.6 | 0.4 | 0.5 | 0.8 | 0.7 | 0.6 |
| FCF Yield | -41.4% | 14.2% | 13.6% | 19.2% | 11.2% | 7.0% | 9.0% | -2.1% | 5.3% | 24.8% | 5.1% | 6.4% | 13.9% |
| Market Cap | 1.5B | 1.2B | 1.4B | 2.6B | 1.9B | 3.0B | 3.1B | 3.7B | 2.6B | 4.2B | 6.3B | 4.5B | 3.6B |
| Avg. Price | 15.10 | 13.08 | 12.45 | 18.98 | 24.15 | 23.93 | 29.80 | 38.90 | 31.86 | 41.75 | 69.45 | 59.86 | 56.76 |
| Year-End Price | 15.49 | 12.44 | 14.35 | 26.96 | 19.21 | 31.72 | 32.92 | 39.44 | 28.94 | 50.40 | 81.15 | 64.07 | 56.76 |
KB HOME passes 7 of 9 quality checks, indicating strong fundamentals.
KB HOME trades at 9.2x 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 12.5x vs a median of 11.0x. The company's 5-year average ROIC is 20.3%. Total shareholder yield (dividends + buybacks) is 17.1%. At current prices, the estimated annualized return to fair value is +19.4%.
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.
Based on recent SEC filings and earnings disclosures, Management expects sequential improvement in deliveries, revenues, and gross margins through the second half of fiscal 2026 and into fiscal 2027, supported by a growing backlog of sold, not-yet-started homes that provides visibility and predictability in the construction cycle. The company anticipates meaningful gross margin expansion driven by increased operating leverage, a higher proportion of built-to-order homes delivered, and a favorable mix shift toward higher-price, higher-margin West Coast communities, particularly in Northern California, where communities are now selling and deliveries are ramping. Management remains optimistic about the long-term housing market, supported by favorable demographics and ongoing structural undersupply of homes, while acknowledging the current difficult market environment and managing through affordability concerns and cautious consumer behavior. The company is maintaining land investments at levels supporting current growth projections, continuing share repurchases and quarterly dividends, and planning the relocation of its corporate headquarters to Tempe, Arizona in 2027.
Based on recent SEC filings and earnings calls, KB HOME (KBH) has provided the following forward guidance: Third quarter homes delivered: 2,600–2,800 (Q3 FY2026); Third quarter housing revenues: $1.2 billion–$1.35 billion (Q3 FY2026); Third quarter housing gross profit margin: 16%–16.6% (Q3 FY2026); Full year 2026 homes delivered: 10,500–11,000 (FY2026); Full year 2026 housing revenues: $4.9 billion–$5.3 billion (FY2026), plus 2 additional metrics.
Full year 2026 housing revenues (FY2026): “We have also narrowed our range of expected housing revenues to $4.9 billion-$5.3 billion”
Full year 2026 housing gross profit margin (FY2026): “and for the full year in the range of 16.1%-16.5%, assuming no inventory-related charges”
Third quarter ending community count (Q3 FY2026): “We estimate our third quarter ending community count will be between 270 and 280”