KB Home Stock Story

KBH

Stock

USD 30.82 1.23 3.84%

Macroaxis Story

While many traders are getting carried away by overanalyzing consumer cyclical space, it is reasonable to concentrate on KB Home. We will analyze why it could be a much better year for KB Home shareholders. Is current the entity value sustainable? We will go over the stock valuation drivers to give you a better outlook on taking a position in it.

Published over a month ago

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Our prognosis on KB Home (NYSE:KBH) to bounce back in July

The entity has 1.96 B in debt with debt to equity (D/E) ratio of 0.63, which is OK given its current industry classification.

Our advice module complements current analysts and expert consensus on KB Home. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at this moment.

Our prognosis on KB Home (NYSE:KBH) to bounce back in July

We determine the current worth of KB Home using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of KB Home based exclusively on its fundamental and basic technical indicators. By analyzing KB Home's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of KB Home's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of KB Home. We calculate exposure to KB Home's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to KB Home's related companies.

KB Home Investment Alerts

KB Home investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring KB Home performance across your portfolios.Please check all investment alerts for KB Home

KB Home Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare KB Home value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across KB Home competition to find correlations between indicators driving the intrinsic value of KB Home.

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

Acquisition by Kevin Eltife of 5230 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 grant of common stock by Kevin Eltife, the corporate stakeholder, on 11th of April 2022. This event was filed by Kb Home with SEC on 2022-04-11. Statement of changes in beneficial ownership - SEC Form 4 [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.

Breaking down KB Home Further

The firm reported the last year's revenue of 5.98 B. Total Income to common stockholders was 599.13 M with profit before taxes, overhead, and interest of 1.29 B.

	2019	2020	2021	2022 (projected)
Receivables	274.65 M	306.36 M	275.72 M	222.46 M
Inventories	3.9 B	4.8 B	4.32 B	3.56 B

Receivables Inventories

Margins Breakdown

KB Home profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or KB Home itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of KB Home profit margins.

	Operating Margin	11.47
	EBITDA Margin	0.15
	Gross Margin	0.23
	Profit Margin	0.089

KB Home Earnings Before Interest Taxes and Depreciation Amortization EBITDA is nearly stable at the moment. KB Home Net Income Per Employee is increasing over the last 8 years. Furthermore, KB Home Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. KB Home Earnings Before Interest Taxes and Depreciation Amortization EBITDA is nearly stable at the moment. KB Home Net Income Per Employee is increasing over the last 8 years. The previous year's value of KB Home Net Income Per Employee was 244,384. Furthermore, KB Home Earnings Before Interest Taxes and Depreciation Amortization USD is nearly stable at the moment.

Will KB Home current rise continue?

Current coefficient of variation is at -617.54. KB Home exhibits very low volatility with skewness of -0.06 and kurtosis of -0.25. However, we advise investors to further study KB Home technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure KB Home's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact KB Home's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

KB Home Implied Volatility

KB Home's implied volatility exposes the market's sentiment of KB Home stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if KB Home's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that KB Home stock will not fluctuate a lot when KB Home's options are near their expiration.

Our Final Take On KB Home

While some other firms 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. To conclude, as of the 22nd of June 2022, our primary 90 days buy-or-sell advice on the company is Hold. We believe KB Home is undervalued with below average probability of distress for the next two years.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

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 Vlad Skutelnik 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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