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

Health score, price, valuation, risk signals, and key metrics at a glance.

KB Home

NYSE•Consumer Cyclical•Residential Construction

$47.12-1.42(-0.03%)Market closed

Market Cap

$2.91B

P/E

10.7x

P/S

0.5x

P/B

0.8x

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.

How this company scores

AverageMetricSide Score: 48/100

Strongest: Cash & Earnings Quality (22/25); weakest: Growth (3/25).

Profitability8/25

Growth3/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality22/25

Strengths

Rising free cash flowInterest easily coveredCash-backed earningsNet cash position

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 10.7x5y range 3.2x – 11.3x

Currently above its 20-quarter median.

P/S · 0.5x5y range 0.4x – 0.9x

Currently near its 20-quarter median.

P/B · 0.8x5y range 0.7x – 1.6x

Watch items

Data-driven signals worth keeping an eye on across the last 8 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.

Price & Volume

Market Cap $2.91B

Metrics at a Glance

as of May 2026

Revenue & Profit

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

TTM Revenue: $5.50B
Q. Revenue: $1.11B
TTM EBITDA: $349.18M
TTM Op. Income: $309.40M
Q. Op. Income: $28.15M
TTM Net Income: $272.12M
Q. Net Income: $27.35M
EPS: $0.44
Shares Out.: $61.79M

$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 show growth is flowing through to the bottom line. TTM net income of $272.12M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has fallen for 6 consecutive quarters — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 15.2%
EBITDA Margin: 3.5%
Op. Margin: 2.5%
Net Margin: 2.5%

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% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 6 consecutive quarters — a weakening trend.

Price Ratios

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

P/E Ratio: 10.7x
P/S Ratio: 0.5x
P/B Ratio: 0.8x

At 10.7x P/E, the stock trades below typical market levels. P/S of 0.5x and P/B of 0.8x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 68% — an improving trend.

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
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 free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 457% — a weakening trend.