KB Home Story

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KBH -- USA Stock  

USD 37.62  1.06  2.90%

KB Home Average Equity is most likely to increase significantly in the upcoming years. The last year's value of Average Equity was reported at 2.58 Billion. The current Free Cash Flow is estimated to increase to about 268.5 M, while Net Income Per Employee is projected to decrease to roughly 91.8 K. Despite nearly stable basic indicators, KB Home is not utilizing all of its potentials. The current stock price disturbance, may contribute to a mid-run swings for the stockholders. We currently estimate KB Home as overvalued. The real value is approaching 33.55 per share.
Published over a month ago
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How stable are KB Home (NYSE:KBH) basic indicators given the current rise?
KB Home trade advice module can be used to check and cross-verify current advice provided by analysts analyzing the company's potential to grow using all of fundamental, technical, data market data available at this moment. The company dividends can provide a clue to the current value of the stock. This firm one year expected dividend income is about $0.23 per share.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include KB Home income statement, its balance sheet, and the statement of cash flows. Potential KB Home investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although KB Home investors may use each financial statement separately, they are all related. The changes in KB Home's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on KB Home's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of KB Home fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of KB Home performance into the future periods or doing a reasonable stock valuation. The intrinsic value of KB Home shares is the value that is considered the true value of the share. If the intrinsic value KB Home is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares KB Home. Please read more on our fundamental analysis page.

Are KB Home Earnings Expected to grow?

The future earnings power of KB Home involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of KB Home factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. KB Home stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of KB Home expected earnings.

And What about dividends?

A dividend is the distribution of a portion of KB Home earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. KB Home dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. KB Home one year expected dividend income is about $0.23 per share.
KB Home Dividend Yield is most likely to slightly decrease in the upcoming years. The last year's value of Dividend Yield was reported at 0.0099. The current Dividends per Basic Common Share is estimated to increase to 0.38, while Payment of Dividends and Other Cash Distributions is projected to decrease to (25.3 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-23.4 M-25.3 M
Dividend Yield 0.0099  0.0101 
Dividends per Basic Common Share 0.35  0.38 
Investing in dividend-paying stocks, such as KB Home is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in KB Home must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for KB Home. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for KB Home, but it might be worth checking our own buy vs. sell analysis

KB Home Gross Profit

KB Home Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing KB Home previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show KB Home Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Exercise or conversion by Jeffrey Mezger of 117170 shares of KB Home subject to Rule 16b-3

Legal trades by KB Home insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
KB Home insider trading alert for exercise of non-qualified stock options (right to buy) by Jeffrey Mezger, President and CEO, on 23rd of October 2020. This event was filed by Kb Home with SEC on 2020-10-23. Statement of changes in beneficial ownership - SEC Form 4. Jeffrey Mezger currently serves as chairman of the board, president, chief executive officer of KB Home [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at KB Home

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of KB Home is not uncomon. There are few distinct groups of KB Home stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of KB Home is distributed among investors.

Ownership Allocation

KB Home shows a total of 97.84 Million outstanding shares. The majority of KB Home outstanding shares are owned by institutions. These other corporate entities are usually referred to as non-private investors looking to shop for positions in KB Home to benefit from reduced commissions. Hence, outside corporations are subject to a different set of regulations than regular investors in KB Home. Please pay attention to any change in the institutional holdings of KB Home as this could imply that something significant has changed or about to change at the company. Also note that almost one million nine hundred fifty-six thousand eight hundred invesors are currently shorting KB Home expressing very little confidence in its future performance.

Insiders
10.98%
Institutions
91.48%
Retail Investors-2.46
Insiders10.98
Institutions91.48
 2019 2020 (projected)
Interest Expense559.8 K574.53 K
Gross Profit970.39 M770.41 M

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. KB Home has an asset utilization ratio of 91.78 percent. This implies that the company is making $0.92 for each dollar of assets. An increasing asset utilization means that KB Home is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
3.6 B
Current Assets3.58 Billion89.1
Tax Assets438.36 Million10.9

KB Home is likely to close below $40 next week

KB Home current kurtosis boosts over 2.22. KB Home shows above-average downside volatility for the selected time horizon. We advise investors to inspect KB Home further and ensure that all market timing and asset allocation strategies are consistent with the estimation of KB Home future alpha.

The Bottom Line

While many other companies within the residential construction industry are still a little expensive, even after the recent corrections, KB Home may offer a potential longer-term growth to stockholders. While some stockholders may not share our view we believe it may be a good time to drop KB Home as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to KB Home.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of KB Home. Please refer to our Terms of Use for any information regarding our disclosure principles.

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