Fact based stock research
KB Home (NYSE:KBH)

US48666K1097

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

KB Home stock research in summary

kbhome.com

ANALYSIS: With an Obermatt Combined Rank of 73 (better than 73% compared with investment alternatives), KB Home (Homebuilding, USA) shares have above-average financial characteristics compared with similar stocks. Shares of KB Home are a good value (attractively priced) with a consolidated Value Rank of 95 (better than 95% of alternatives), are safely financed (Safety Rank of 64, which means low debt burdens), but show below-average growth (Growth Rank of 39). ...read more

RECOMMENDATION: A Combined Rank of 73, is a buy recommendation based on KB Home's financial characteristics. As the company KB Home's key financial metrics exhibit good value (Obermatt Value Rank of 95) but low growth (Obermatt Growth Rank of 39) while being safely financed (Obermatt Safety Rank of 64), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 95% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	95
Growth Rank	39
Safety Rank	64
Combined Rank	73

Country	USA
Industry	Homebuilding
Index	Customer Focus US, Dividends USA, S&P MIDCAP
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: KB Home

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	83	99	99	95
GROWTH
GROWTH	70	49	41	39
SAFETY
SAFETY	48	64	64	64
SENTIMENT
SENTIMENT	n/a	11	39	^new
360° VIEW
360° VIEW	n/a	61	71	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 31-Aug-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better KB Home is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	83	99	99	95
GROWTH
GROWTH	70	49	41	39
SAFETY
SAFETY	48	64	64	64
COMBINED
COMBINED	85	73	73	73

Last update of combined financial performance: 10-Nov-2022. Stock analysis on combined financial performance: The higher the rank of KB Home the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 95 (better than 95% compared with alternatives) for 2022, KB Home shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for KB Home. Price-to-Sales is 68 which means that the stock price compared with what market professionals expect for future sales is lower than for 68% of comparable companies, indicating a good value for KB Home's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 80% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 56. Compared with other companies in the same industry, dividend yields of KB Home are expected to be higher than for 81% of all competitors (a Dividend Yield rank of 81). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 95, is a buy recommendation based on KB Home's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in KB Home based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	77	85	69	68
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	90	89	86	80
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	67	87	67	56
DIVIDEND YIELD
DIVIDEND YIELD	51	87	84	81
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	83	99	99	95

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of KB Home; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), KB Home shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for KB Home. Sales Growth has a rank of 57 which means that currently, professionals expect the company to grow more than 57% of its competitors. Both Profit Growth, with a rank of 57, and Stock Returns, with a rank of 73, are also above average. But Capital Growth only has a rank of 17, which means that, currently, professionals expect the company to grow its invested capital less than 83% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	38	49	27	57
PROFIT GROWTH
PROFIT GROWTH	39	60	39	57
CAPITAL GROWTH
CAPITAL GROWTH	n/a	35	43	17
STOCK RETURNS
STOCK RETURNS	78	71	85	73
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	70	49	41	39

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of KB Home.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 64 (better than 64% compared with alternatives), the company KB Home has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of KB Home is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for KB Home and the other two below average. Refinancing is at 93, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 93% of its competitors. But Leverage is high with a rank of 40, meaning the company has an above-average debt-to-equity ratio. It has more debt than 60% of its competitors. Liquidity is also on the riskier side with a rank of 45, meaning the company generates less profit to service its debt than 55% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 64 (better than 64% compared with alternatives), KB Home has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for KB Home are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with KB Home and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	16	46	40	40
REFINANCING
REFINANCING	94	93	93	93
LIQUIDITY
LIQUIDITY	41	31	47	45
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	48	64	64	64

Last update of Safety Rank: 10-Nov-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of KB Home and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	46	16	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	3	44	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	53	56	^new
MARKET PULSE
MARKET PULSE	n/a	36	72	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	11	39	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for KB Home.
Upgrade to a Premium Account to access the latest ranks.