KB Home (KBH) AI Stock Analysis

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KB Home

(Frankfurt:KBH)

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Positive Factors

Built-to-Order ExecutionA predominantly Built-to-Order model helps align construction with committed demand and reduces exposure to unsold-home inventory. The higher mix, combined with lower unsold levels, supports working-capital discipline and can improve margin resilience as KB Home manages production through changing demand.

Negative Factors

Revenue and Earnings ContractionThe decline in deliveries, revenue, and net income indicates that weaker housing demand is already affecting operating scale. If lower volume persists, fixed costs and community expenses will be spread across fewer homes, limiting earnings recovery and reducing the benefits of KB Home’s platform.

KB Home (KBH) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 3.04B
Dividend Yield: 2.00%
Average Volume (3M): 209
Price to Earnings (P/E): 13.8
Beta (1Y): 0.62
Revenue Growth: -25.12%
EPS Growth: -53.04%
Country: Germany
Employees: 2,118
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Residential Construction

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 engage...

KB Home Earnings Call Summary

Earnings Call Date:Sep 22, 2026(Q3-2026)|% Change Since:12.26%|Next Earnings Date:Jan 14, 2026

Earnings Call SentimentNeutral

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.

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 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.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

KB Home Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:KBH against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHI	71Outperform	$40.63B	14.53	12.22%	1.25%	-3.52%	-12.68%
PHM	66Neutral	$24.04B	13.78	13.80%	0.80%	-9.35%	-27.96%
LEN	65Neutral	$20.56B	16.32	6.03%	2.32%	-8.01%	-47.77%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MHO	60Neutral	$3.26B	11.95	8.64%	―	-5.81%	-38.43%
MTH	52Neutral	$4.33B	14.95	5.84%	2.81%	-14.89%	-41.01%

* Consumer Cyclical Sector Average

Performance Comparison

DE:KBH and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:KBH	KB Home	46.06	-5.22	-10.18%
DHI	D.R. Horton Inc	147.48	5.34	3.76%
LEN	Lennar Corporation	86.33	-32.25	-27.20%
MHO	M/I Homes Inc	128.47	-0.86	-0.66%
MTH	Meritage Homes Corp	66.53	1.87	2.89%
PHM	Pultegroup	129.50	12.08	10.29%

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.

KB Home AI Stock Analysis