KB Home (KBH) 10-Year Financial Performance & Capital Metrics

KBH • • Industrial / General

Consumer CyclicalHomebuildersTraditional Site-Built HomebuildersNational Production Homebuilders

AboutKB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various 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 offers financial services, such as insurance products and title services. It has operations in Arizona, California, Colorado, Florida, 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 headquartered in Los Angeles, California.Show more

Revenue $6.93B +8.1%
EBITDA $827M +4.7%
Net Income $655M +11.0%
EPS (Diluted) 8.45 +20.2%
Gross Margin 21.4% -1.4%
EBITDA Margin 11.94% -3.1%
Operating Margin 11.4% -3.0%
Net Margin 9.45% +2.7%
ROE 16.64% +5.3%
ROIC 11.89% +5.1%
Debt/Equity 0.42 -6.4%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong 5Y profit CAGR of 19.5%
✓Good 3Y average ROE of 19.0%
✓Share count reduced 7.7% through buybacks
✓Trading at only 1.2x book value

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y11.18%

5Y8.77%

3Y6.58%

TTM-0.95%

Profit (Net Income) CAGR

10Y-3.32%

5Y19.5%

3Y5.07%

TTM-15.75%

EPS CAGR

10Y-0.9%

5Y24.28%

3Y12.03%

TTM-8.72%

ROCE

10Y Avg10.08%

5Y Avg14.02%

3Y Avg15.77%

Latest13.35%

Peer Comparison

National Production Homebuilders

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
NVRNVR, Inc.	20.83B	7623.01	15.04	10.58%	13.9%	36.14%	6.46%	0.24
DHID.R. Horton, Inc.	46.87B	161.00	13.92	-6.93%	10.47%	14.49%	7.01%	0.24
PHMPulteGroup, Inc.	25.9B	132.87	9.04	11.74%	14.93%	20.51%	6.03%	0.19
LENLennar Corporation	26.38B	122.25	8.54	3.47%	7.72%	11.8%	8.46%	0.16
KBHKB Home	3.93B	62.24	7.37	8.1%	7.92%	11.08%	8.22%	0.42

Profit & Loss

	Nov 2015	Nov 2016	Nov 2017	Nov 2018	Nov 2019	Nov 2020	Nov 2021	Nov 2022	Nov 2023	Nov 2024
Sales/Revenue+	3.03B	3.59B	4.37B	4.55B	4.55B	4.18B	5.72B	6.9B	6.41B	6.93B
Revenue Growth %	0.26%	0.19%	0.22%	0.04%	0%	-0.08%	0.37%	0.21%	-0.07%	0.08%
Cost of Goods Sold+	2.54B	3.04B	3.65B	3.74B	3.71B	3.37B	4.47B	5.21B	5.02B	5.45B
COGS % of Revenue	0.84%	0.85%	0.83%	0.82%	0.81%	0.81%	0.78%	0.76%	0.78%	0.79%
Gross Profit+	492.66M	553.54M	722.06M	803.08M	847.12M	808.62M	1.26B	1.69B	1.39B	1.48B
Gross Margin %	0.16%	0.15%	0.17%	0.18%	0.19%	0.19%	0.22%	0.24%	0.22%	0.21%
Gross Profit Growth %	0.19%	0.12%	0.3%	0.11%	0.05%	-0.05%	0.55%	0.35%	-0.18%	0.07%
Operating Expenses+	346.71M	393.26M	429.82M	448M	501.68M	468.16M	579.43M	635.41M	637.82M	692.98M
OpEx % of Revenue	0.11%	0.11%	0.1%	0.1%	0.11%	0.11%	0.1%	0.09%	0.1%	0.1%
Selling, General & Admin	346.71M	393.26M	429.82M	448M	501.68M	468.16M	579.43M	635.41M	637.82M	692.98M
SG&A % of Revenue	0.11%	0.11%	0.1%	0.1%	0.11%	0.11%	0.1%	0.09%	0.1%	0.1%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	0	0	0	0	0	0	0	0
Operating Income+	145.95M	160.29M	292.24M	355.08M	345.44M	340.46M	676.19M	1.06B	753.93M	790.22M
Operating Margin %	0.05%	0.04%	0.07%	0.08%	0.08%	0.08%	0.12%	0.15%	0.12%	0.11%
Operating Income Growth %	0.18%	0.1%	0.82%	0.22%	-0.03%	-0.01%	0.99%	0.56%	-0.29%	0.05%
EBITDA+	149.36M	163.92M	295.03M	357.61M	372.59M	368.86M	704.83M	1.09B	790.35M	827.49M
EBITDA Margin %	0.05%	0.05%	0.07%	0.08%	0.08%	0.09%	0.12%	0.16%	0.12%	0.12%
EBITDA Growth %	0.18%	0.1%	0.8%	0.21%	0.04%	-0.01%	0.91%	0.54%	-0.27%	0.05%
D&A (Non-Cash Add-back)	3.41M	3.64M	2.79M	2.53M	27.16M	28.4M	28.64M	32.32M	36.41M	37.27M
EBIT	148.9M	155.22M	290.62M	367.96M	348.18M	364.04M	695.35M	1.07B	771.28M	850.92M
Net Interest Income+	-21.4M	-5.37M	618K	3.51M	2.16M	2.55M	1.05M	704K	13.76M	19.6M
Interest Income	458K	529K	1.24M	3.51M	2.16M	2.55M	1.05M	704K	13.76M	19.6M
Interest Expense	21.86M	5.9M	622K	0	0	0	0	0	0	0
Other Income/Expense	-18.91M	-10.97M	-2.24M	12.88M	2.74M	23.58M	19.16M	17.04M	17.34M	60.7M
Pretax Income+	127.04M	149.31M	290M	367.96M	348.18M	364.04M	695.35M	1.07B	771.28M	850.92M
Pretax Margin %	0.04%	0.04%	0.07%	0.08%	0.08%	0.09%	0.12%	0.16%	0.12%	0.12%
Income Tax+	42.4M	43.7M	109.4M	197.6M	79.4M	67.8M	130.6M	255.4M	181.1M	195.9M
Effective Tax Rate %	0.67%	0.71%	0.62%	0.46%	0.77%	0.81%	0.81%	0.76%	0.77%	0.77%
Net Income+	84.64M	105.61M	180.59M	170.37M	268.77M	296.24M	564.75M	816.67M	590.18M	655.02M
Net Margin %	0.03%	0.03%	0.04%	0.04%	0.06%	0.07%	0.1%	0.12%	0.09%	0.09%
Net Income Growth %	-0.91%	0.25%	0.71%	-0.06%	0.58%	0.1%	0.91%	0.45%	-0.28%	0.11%
Net Income (Continuing)	84.64M	105.61M	180.59M	170.37M	268.77M	296.24M	564.75M	816.67M	590.18M	655.02M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	0.82	1.10	1.84	1.69	2.85	3.13	6.01	9.09	7.03	8.45
EPS Growth %	-0.91%	0.34%	0.67%	-0.08%	0.69%	0.1%	0.92%	0.51%	-0.23%	0.2%
EPS (Basic)	0.92	1.23	2.10	1.72	3.04	3.26	6.22	9.35	7.25	8.70
Diluted Shares Outstanding	102.86M	96.28M	98.32M	101.06M	93.84M	94.09M	93.59M	89.35M	83.38M	76.95M
Basic Shares Outstanding	92.05M	85.71M	85.84M	99.12M	88M	90.46M	90.4M	86.86M	80.84M	74.75M
Dividend Payout Ratio	0.11%	0.08%	0.05%	0.05%	0.08%	0.13%	0.1%	0.06%	0.1%	0.11%

Balance Sheet

	Nov 2015	Nov 2016	Nov 2017	Nov 2018	Nov 2019	Nov 2020	Nov 2021	Nov 2022	Nov 2023	Nov 2024
Total Current Assets+	4.03B	4.23B	4.23B	4.45B	4.41B	4.85B	5.4B	6.19B	6.25B	6.53B
Cash & Short-Term Investments	559.04M	592.09M	720.63M	574.36M	453.81M	681.19M	290.76M	330.2M	727.34M	599.19M
Cash Only	559.04M	592.09M	720.63M	574.36M	453.81M	681.19M	290.76M	330.2M	727.34M	599.19M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	250.24M	233.43M	245.94M	295.71M	251.29M	274.65M	306.36M	326.24M	369.64M	382.94M
Days Sales Outstanding	30.12	23.7	20.55	23.74	20.15	23.96	19.53	17.25	21.05	20.17
Inventory	3.31B	3.4B	3.26B	3.58B	3.7B	3.9B	4.8B	5.54B	5.13B	5.53B
Days Inventory Outstanding	476.31	408.46	326.65	349.3	364.9	421.56	392.24	388.09	373.35	370.44
Other Current Assets	108.2M	-6.66M	-7.08M	-10.53M	-8.18M	-15.9M	-8.51M	-20.8M	0	0
Total Non-Current Assets+	980.56M	904.64M	813.29M	623.54M	608.01M	505.11M	438.13M	457.47M	401.85M	408.22M
Property, Plant & Equipment	13.1M	14.24M	19.52M	24.28M	65.04M	65.55M	76.31M	89.23M	113.03M	109.09M
Fixed Asset Turnover	231.45x	252.43x	223.79x	187.25x	70.00x	63.82x	75.02x	77.37x	56.71x	63.52x
Goodwill	0	0	0	0	0	0	0	0	0	0
Intangible Assets	0	0	0	0	0	0	0	0	0	0
Long-Term Investments	71.56M	64.02M	64.79M	61.96M	57.04M	46.78M	36.09M	73.46M	78.48M	89.02M
Other Non-Current Assets	126.8M	101.64M	114.86M	119.76M	121.44M	161.71M	148.35M	133.91M	90.86M	107.69M
Total Assets+	5.02B	5.13B	5.04B	5.07B	5.02B	5.36B	5.84B	6.65B	6.65B	6.94B
Asset Turnover	0.60x	0.70x	0.87x	0.90x	0.91x	0.78x	0.98x	1.04x	0.96x	1.00x
Asset Growth %	0.05%	0.02%	-0.02%	0.01%	-0.01%	0.07%	0.09%	0.14%	-0%	0.04%
Total Current Liabilities+	697.18M	766.33M	789.39M	924.31M	881.55M	940.87M	1.13B	1.15B	810.86M	936.15M
Accounts Payable	183.77M	215.33M	213.46M	258.05M	262.77M	273.37M	371.83M	412.52M	390.1M	387.61M
Days Payables Outstanding	26.41	25.84	21.37	25.16	25.88	29.57	30.37	28.88	28.37	25.97
Short-Term Debt	0	263.93M	0	0	0	13.29M	349.47M	460.59M	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	0
Other Current Liabilities	-285.09M	-410.66M	-297.03M	313.81M	317.48M	346.89M	-165.93M	14.16M	45.71M	548.56M
Current Ratio	5.79x	5.52x	5.36x	4.81x	5.00x	5.16x	4.78x	5.39x	7.70x	6.97x
Quick Ratio	1.03x	1.07x	1.22x	0.94x	0.80x	1.01x	0.53x	0.57x	1.37x	1.07x
Cash Conversion Cycle	480.02	406.32	325.84	347.88	359.16	415.96	381.4	376.46	366.02	364.63
Total Non-Current Liabilities+	2.63B	2.64B	2.33B	2.06B	1.75B	1.75B	1.69B	1.84B	2.03B	2.49B
Long-Term Debt	2.63B	2.64B	2.32B	2.06B	1.75B	1.75B	1.34B	1.84B	1.69B	1.69B
Capital Lease Obligations	0	0	0	0	0	37.67M	29.28M	27.49M	26.53M	20.86M
Deferred Tax Liabilities	-14.56M	-18.18M	-16.86M	-1.8B	-22.38M	0	62.7M	60.39M	0	0
Other Non-Current Liabilities	1.82M	2M	966K	-18M	2.06M	-61.28M	324.85M	-24.37M	310.93M	778.12M
Total Liabilities	3.32B	3.41B	3.12B	2.99B	2.63B	2.69B	2.82B	2.99B	2.84B	2.88B
Total Debt+	2.63B	2.64B	2.32B	2.06B	1.75B	1.78B	1.71B	1.87B	1.72B	1.71B
Net Debt	2.07B	2.05B	1.6B	1.49B	1.29B	1.07B	1.39B	2.02B	989.09M	1.11B
Debt / Equity	1.55x	1.53x	1.21x	0.99x	0.73x	0.67x	0.57x	0.51x	0.45x	0.42x
Debt / EBITDA	17.58x	16.11x	7.88x	5.76x	4.69x	4.84x	2.43x	1.72x	2.17x	2.07x
Net Debt / EBITDA	13.84x	12.49x	5.44x	4.16x	3.48x	2.89x	1.98x	1.86x	1.25x	1.35x
Interest Coverage	6.68x	27.17x	469.84x	-	-	-	-	-	-	-
Total Equity+	1.69B	1.72B	1.93B	2.09B	2.38B	2.67B	3.02B	3.66B	3.81B	4.06B
Equity Growth %	0.06%	0.02%	0.12%	0.08%	0.14%	0.12%	0.13%	0.21%	0.04%	0.07%
Book Value per Share	16.44	17.90	19.59	20.66	25.40	28.33	32.26	40.97	45.70	52.77
Total Shareholders' Equity	1.69B	1.72B	1.93B	2.09B	2.38B	2.67B	3.02B	3.66B	3.81B	4.06B
Common Stock	115.55M	116.22M	117.95M	119.2M	121.59M	99.87M	100.71M	100.71M	101.28M	74.41M
Retained Earnings	1.47B	1.56B	1.74B	1.9B	2.16B	1.87B	2.38B	3.14B	3.68B	3.27B
Treasury Stock	-447.04M	-535.4M	-541.38M	-584.4M	-591.34M	-27.76M	-217.38M	-341.46M	-737.36M	-141.56M
Accumulated OCI	-17.32M	-16.06M	-16.92M	-9.56M	-15.51M	-22.28M	-19.12M	-5.58M	-3.67M	-3.7M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Nov 2015	Nov 2016	Nov 2017	Nov 2018	Nov 2019	Nov 2020	Nov 2021	Nov 2022	Nov 2023	Nov 2024
Cash from Operations+	181.19M	188.66M	513.22M	221.51M	251.04M	310.68M	-37.3M	183.42M	1.08B	362.72M
Operating CF Margin %	0.06%	0.05%	0.12%	0.05%	0.06%	0.07%	-0.01%	0.03%	0.17%	0.05%
Operating CF Growth %	1.29%	0.04%	1.72%	-0.57%	0.13%	0.24%	-1.12%	5.92%	4.9%	-0.66%
Net Income	84.64M	105.61M	180.59M	170.37M	268.77M	296.24M	564.75M	816.67M	590.18M	655.02M
Depreciation & Amortization	3.41M	3.64M	2.79M	2.53M	27.16M	28.4M	28.64M	32.32M	36.41M	37.27M
Stock-Based Compensation	17.14M	16.85M	14.63M	15.86M	18.31M	21.53M	28.9M	29.46M	34.61M	34.47M
Deferred Taxes	43.04M	43.21M	105.35M	191.82M	73.3M	50.3M	53.77M	16.51M	41.39M	17.05M
Other Non-Cash Items	14.68M	65.8M	33.71M	34.91M	24.29M	33.19M	15.21M	34.33M	22.99M	-10.86M
Working Capital Changes	18.27M	-46.46M	176.15M	-193.97M	-160.79M	-118.98M	-728.56M	-745.87M	357.11M	-370.24M
Change in Receivables	-20.46M	18.96M	-12.51M	-49.78M	44.43M	59.26M	-32.01M	-19.89M	-12.92M	16.59M
Change in Inventory	34.85M	-98.32M	126.08M	-270.13M	-165.35M	-183.23M	-897.75M	-785.56M	426.81M	-385.8M
Change in Payables	1.99M	32.72M	66.59M	126.71M	-40.58M	4.09M	181.63M	53.1M	-62.2M	-7.24M
Cash from Investing+	-11.3M	-6.08M	-15.74M	-20.11M	-40.94M	-26.56M	-38.08M	-71.77M	-58.06M	-50.12M
Capital Expenditures	-4.68M	-4.78M	-8.09M	-7.37M	-40.46M	-28.84M	-39.4M	-45.23M	-35.47M	-39.31M
CapEx % of Revenue	0%	0%	0%	0%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	0	0	0	0	5.8M	2.28M	1.31M	-26.54M	-22.59M	0
Cash from Financing+	31.69M	-149.92M	-369.61M	-347.15M	-330.36M	-56.44M	-315.01M	-73.58M	-627.49M	-440.75M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-9.19M	-8.59M	-8.64M	-8.89M	-20.37M	-38.06M	-54.05M	-52.45M	-56.83M	-71.55M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	14.23M	12.45M	-753K	11.54M	-18.42M	6.55M	-17.15M	-26.97M	-5.38M	-14.58M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	176.51M	183.87M	505.13M	214.14M	210.58M	281.84M	-76.69M	138.18M	1.05B	323.41M
FCF Margin %	0.06%	0.05%	0.12%	0.05%	0.05%	0.07%	-0.01%	0.02%	0.16%	0.05%
FCF Growth %	1.28%	0.04%	1.75%	-0.58%	-0.02%	0.34%	-1.27%	2.8%	6.58%	-0.69%
FCF per Share	1.72	1.91	5.14	2.12	2.24	3.00	-0.82	1.55	12.56	4.20
FCF Conversion (FCF/Net Income)	2.14x	1.79x	2.84x	1.30x	0.93x	1.05x	-0.07x	0.22x	1.83x	0.55x
Interest Paid	0	0	0	0	0	0	0	0	598K	585K
Taxes Paid	0	0	0	0	0	0	0	150M	411.44M	353.7M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	5.15%	6.19%	9.9%	8.49%	12.02%	11.73%	19.87%	24.45%	15.8%	16.64%
Return on Invested Capital (ROIC)	2.89%	3.19%	6%	7.5%	7.15%	6.86%	12.35%	16.42%	11.31%	11.89%
Gross Margin	16.25%	15.4%	16.53%	17.66%	18.61%	19.33%	21.93%	24.49%	21.71%	21.4%
Net Margin	2.79%	2.94%	4.13%	3.75%	5.9%	7.08%	9.86%	11.83%	9.21%	9.45%
Debt / Equity	1.55x	1.53x	1.21x	0.99x	0.73x	0.67x	0.57x	0.51x	0.45x	0.42x
Interest Coverage	6.68x	27.17x	469.84x	-	-	-	-	-	-	-
FCF Conversion	2.14x	1.79x	2.84x	1.30x	0.93x	1.05x	-0.07x	0.22x	1.83x	0.55x
Revenue Growth	26.28%	18.56%	21.53%	4.09%	0.13%	-8.12%	36.86%	20.59%	-7.14%	8.1%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Home Building	-	-	-	-	376.15M	-	-	-	6.38B	6.9B
Home Building Growth	-	-	-	-	-	-	-	-	-	8.17%
Financial Service	-	-	-	-	-	15.47M	19.9M	23.41M	29.52M	27.85M
Financial Service Growth	-	-	-	-	-	-	28.63%	17.65%	26.09%	-5.68%
Financial services	11.04M	-	-	-	-	-	-	-	-	-
Financial services Growth	-	-	-	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
West Coast	1.4B	1.64B	2.19B	2.09B	1.91B	1.75B	2.55B	3.05B	2.32B	2.93B
West Coast Growth	-	16.82%	33.47%	-4.62%	-8.30%	-8.55%	45.97%	19.52%	-23.91%	26.32%
Central	809.74M	1.02B	1.19B	1.24B	1.27B	1.19B	1.5B	1.75B	1.83B	1.45B
Central Growth	-	25.79%	16.72%	4.24%	2.31%	-5.92%	26.07%	16.32%	4.73%	-20.70%
Southwest	398.24M	447.47M	533.05M	707.08M	764.82M	796.81M	965.14M	1.11B	1.17B	1.31B
Southwest Growth	-	12.36%	19.12%	32.65%	8.17%	4.18%	21.13%	15.01%	5.40%	11.97%
Southeast	410.74M	478.86M	447.96M	502.09M	592.8M	429.44M	683.65M	970.58M	1.06B	1.21B
Southeast Growth	-	16.58%	-6.45%	12.08%	18.07%	-27.56%	59.20%	41.97%	9.02%	14.11%

Frequently Asked Questions

Valuation & Price

KB Home (KBH) has a price-to-earnings (P/E) ratio of 7.4x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

KB Home (KBH) reported $6.54B in revenue for fiscal year 2024. This represents a 401% increase from $1.31B in 2011.

KB Home (KBH) grew revenue by 8.1% over the past year. This is steady growth.

Yes, KB Home (KBH) is profitable, generating $517.9M in net income for fiscal year 2024 (9.5% net margin).

Dividend & Returns

Yes, KB Home (KBH) pays a dividend with a yield of 1.49%. This makes it attractive for income-focused investors.

KB Home (KBH) has a return on equity (ROE) of 16.6%. This is reasonable for most industries.

KB Home (KBH) generated $349.8M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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