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KB Home
(NYSE:KBH)
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Rating:59Neutral
Price Target:
$50.00
▼(-8.63% Downside)
Action:Reiterated
Date:09/28/26
KBH scores 59 primarily due to a weakening financial trajectory (lower revenue and materially compressed margins) and bearish technical setup (price below all key moving averages with negative momentum). These risks are partially offset by a reasonable valuation (P/E 13.22 and ~2.08% yield) and an earnings-call outlook that highlights execution and liquidity strength, but acknowledges continued demand and pricing headwinds.
Positive Factors
Built-to-Order Execution
A predominantly Built-to-Order model aligns construction more closely with contracted demand, reducing exposure to unsold finished homes and inventory risk. The rising mix, alongside backlog growth and faster build times, supports better working-capital discipline and more predictable execution.
Negative Factors
Demand and Volume Weakness
Lower traffic, declining net orders, and reduced deliveries indicate that affordability pressure and consumer caution are affecting demand rather than merely changing timing. Persistently weaker absorption can limit revenue growth, reduce operating leverage, and make community investments less productive.
Read all positive and negative factors
Positive Factors
Negative Factors
Built-to-Order Execution
A predominantly Built-to-Order model aligns construction more closely with contracted demand, reducing exposure to unsold finished homes and inventory risk. The rising mix, alongside backlog growth and faster build times, supports better working-capital discipline and more predictable execution.
Read all positive factors
KB Home Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows revenue distribution across different regions, highlighting where KB Home is performing well and identifying areas with growth opportunities or potential risks.
Shows revenue distribution across different regions, highlighting where KB Home is performing well and identifying areas with growth opportunities or potential risks.
Data provided by:
The Fly
The FlyKB Home (KBH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.78B
Dividend Yield2.19%
Average Volume (3M)1.47M
Price to Earnings (P/E)12.6
Beta (1Y)0.53
Revenue Growth-20.80%
EPS Growth-50.23%
CountryUS
Employees2,118
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)4.20
Shares Outstanding60,800,000
10 Day Avg. Volume1,925,297
30 Day Avg. Volume1,472,197
Financial Highlights & Ratios
PEG Ratio-0.37
Price to Book (P/B)1.12
Price to Sales (P/S)0.70
P/FCF Ratio15.16
Enterprise Value/Market Cap1.88
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit5.62
Enterprise Value/Ebitda13.59
Forecast
1Y Price Target
$54.80Price Target Upside0.15% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)3.24
Revenue Forecast (FY)$5.06B
KB Home Business Overview & Revenue Model
Company Description
KB Home functions as a prominent residential construction enterprise across the United States. Its operations are strategically divided into four key geographical areas: the West Coast, Southwest, Central, and Southeast regions. The company is eng...
How the Company Makes Money
KB Home makes money primarily by selling newly constructed homes to individual homebuyers. The core revenue stream is homebuilding revenue recognized from the sale of homes (typically at closing), which reflects the contracted selling price of the...
KB Home Earnings Call Summary
Earnings Call Date:Sep 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 24, 2027
Earnings Call Sentiment Neutral
The call was cautiously balanced. KB Home highlighted strong execution of its Built to Order strategy, lower inventory risk, faster build times, solid buyer credit metrics, substantial backlog visibility, continued shareholder returns, and a healthy liquidity position. However, these strengths were offset by weaker housing demand, lower traffic and orders, year-over-year declines in revenue and earnings, increased resale competition, pricing pressure, higher costs, and reduced fourth-quarter ASP and gross margin expectations.Positive Updates
Third-Quarter Results Met or Exceeded Guidance
Third-quarter total and housing revenues were $1.3 billion, net income was $65 million, and diluted earnings per share were $1.05. Results met or exceeded the company's guidance range across all metrics despite the difficult operating environment.
Negative Updates
Housing Market Conditions Weakened
Management said the housing market remains challenging, with conditions weakening since the prior earnings call. Rising mortgage rates, persistently high inflation, fuel prices, geopolitical uncertainty, and broader economic headwinds have increased affordability pressure and made consumers more cautious.
Read all updates
Q3-2026 Updates
Positive
Negative
Third-Quarter Results Met or Exceeded Guidance
Third-quarter total and housing revenues were $1.3 billion, net income was $65 million, and diluted earnings per share were $1.05. Results met or exceeded the company's guidance range across all metrics despite the difficult operating environment.
Read all positive updates
Company Guidance
For fiscal 2026, KB Home expects homes delivered of 10,500 to 11,000, housing revenues of $4.9 billion to $5.1 billion, housing gross profit of 16% to 16.2%, an SG&A ratio of 11.5% to 11.7%, and an effective tax rate of approximately 23%; for the fourth quarter, it expects homes delivered to range from 3,000 to 3,500, housing revenues to range from $1.45 billion to $1.65 billion, housing gross profit of 16% to 16.6%, an SG&A ratio of 10.3% to 10.9%, an effective tax rate of approximately 26%, and an average selling price of about $480,000, with ending community count between 270 and 275 communities, up to $50 million of repurchases planned, and a target of 90 days for BTO build times.KB Home Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.50B | 6.24B | 6.93B | 6.41B | 6.90B | 5.72B |
| Gross Profit | 932.11M | 1.17B | 1.47B | 1.37B | 1.68B | 1.25B |
| EBITDA | 385.60M | 591.49M | 888.19M | 807.69M | 1.10B | 704.83M |
| Net Income | 272.12M | 428.79M | 655.02M | 590.18M | 816.67M | 564.75M |
Balance Sheet | ||||||
| Total Assets | 6.78B | 6.72B | 6.94B | 6.65B | 6.65B | 5.84B |
| Cash, Cash Equivalents and Short-Term Investments | 199.82M | 230.44M | 599.19M | 727.34M | 330.20M | 292.14M |
| Total Debt | 2.00B | 1.73B | 1.71B | 1.72B | 2.37B | 1.71B |
| Total Liabilities | 2.98B | 2.82B | 2.88B | 2.84B | 2.99B | 2.82B |
| Stockholders Equity | 3.80B | 3.90B | 4.06B | 3.81B | 3.66B | 3.02B |
Cash Flow | ||||||
| Free Cash Flow | 362.50M | 287.28M | 323.41M | 1.05B | 138.18M | -76.69M |
| Operating Cash Flow | 411.06M | 335.68M | 362.72M | 1.08B | 183.42M | -37.30M |
| Investing Cash Flow | -74.62M | -61.80M | -50.12M | -58.06M | -71.77M | -38.08M |
| Financing Cash Flow | -446.62M | -642.63M | -440.75M | -627.49M | -73.58M | -315.01M |
KB Home Technical Analysis
Negative
54.72
Price Trends
52.79
Negative
53.09
Negative
54.69
Negative
Market Momentum
-1.80
Positive
31.30
Neutral
16.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KBH, the sentiment is Negative. The current price of 54.72 is above the 20-day moving average (MA) of 48.29, above the 50-day MA of 52.79, and above the 200-day MA of 54.69, indicating a bearish trend. The MACD of -1.80 indicates Positive momentum. The RSI at 31.30 is Neutral, neither overbought nor oversold. The STOCH value of 16.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KBH.
KB Home Risk Analysis
KB Home disclosed 1 risk factors in its most recent earnings report. KB Home reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KB Home Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $21.69B | 11.77 | 14.73% | 0.90% | -7.28% | -26.86% | |
72 Outperform | $3.41B | 11.10 | 9.97% | ― | -4.94% | -35.08% | |
69 Neutral | $37.76B | 12.82 | 12.77% | 1.33% | -3.54% | -15.86% | |
63 Neutral | $19.19B | 15.09 | 6.03% | 2.51% | -8.01% | -47.77% | |
63 Neutral | $4.16B | 13.30 | 6.38% | 2.93% | -13.27% | -45.63% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $2.78B | 12.60 | 5.93% | 2.19% | -20.80% | -50.23% |
* Consumer Cyclical Sector Average
KBH
KB Home
45.75
-17.59
-27.77%
DHI
DR Horton
135.00
-34.50
-20.35%
LEN
Lennar
79.81
-44.08
-35.58%
MHO
M/I Homes
134.76
-8.29
-5.80%
MTH
Meritage
63.85
-6.37
-9.07%
PHM
PulteGroup
115.73
-18.60
-13.85%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.