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KB Home (KBH) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Consumer Cyclical•Residential Construction
D
WeakMetricSide Score: 35/100
ProfitabilityProfit11/30
GrowthGrowth6/25
Balance SheetBalance9/25
Cash QualityCash9/20
Price & Volume
Market Cap $3.40B

KB Home operates as a homebuilding company in the United States. It builds and sells 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 provides financial services, such as mortgage banking services, such as residential consumer mortgage loan originations to homebuyers; property and casualty insurance services, as well as earthquake, flood, and personal property insurance products to homebuyers; and title services. It conducts operations in Arizona, California, Colorado, Florida, Idaho, 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 based in Los Angeles, California.

Moat Signals

Competitive analysis based on 64 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~7.6% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Moderate Moat

ROE is positive at ~12.7% on average, adequate but below the threshold typically associated with wide moats.

Risk Signals

Data-driven red flags and warnings across 64 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 48.5% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Leverage Risk

Healthy

Limited debt-to-equity data available.

Revenue Decline

Red Flag

TTM revenue has contracted 10.6% — significant decline indicating deteriorating demand.

Cash Burn

Watch

FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.

Share Dilution

Healthy

Shares decreased 17.0% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of May 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$5.50B
17.5%
Q. Revenue
$1.11B
TTM EBITDA
$349.18M
51.0%
TTM Op. Income
$309.40M
54.3%
Q. Op. Income
$28.15M
TTM Net Income
$272.12M
51.9%
Q. Net Income
$27.35M
EPS
$0.44
Shares Out.
$61.79M
11.7%
$5.50B in TTM revenue declined 17.5% YoY, reaching $1.11B last quarter. TTM EBITDA of $349.18M and TTM operating income of $309.40M shows growth is flowing through. Net income of $272.12M TTM confirms the company is converting revenue into profit. Revenue is contracting — assess whether this is cyclical or structural.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
15.2%
22.6%
EBITDA Margin
3.5%
Op. Margin
2.5%
70.6%
Net Margin
2.5%
65.1%
Op. margin of 2.5% is down 6.1% YoY — costs are rising relative to revenue. Net margin at 2.5% and gross margin of 15.2% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
12.5x
P/S Ratio
0.6x
P/B Ratio
0.9x
At 12.5x P/E, the stock trades below market averages — potentially undervalued. P/S of 0.6x and P/B of 0.9x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$6.78B
Cash
$200.76M
Long-Term Debt
N/A
Book Value
$3.80B
D/E Ratio
N/A
Debt/EBITDA
0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$31.90M
TTM Free Cash Flow
$359.54M
456.9%
FCF Margin
6.5%
FCF / Net Income
1.3
TTM FCF of $359.54M on $31.90M in operating cash flow. The FCF / Net Income ratio of 1.3x means earnings are well backed by actual cash — high-quality earnings.

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Cash Generation

Moderate Moat

5 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Weak Moat

Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.