Recent News
Between July 18 and October 10, 2025 the company issued a steady cadence of community grand-opening announcements across multiple states (Washington, Arizona, California, Texas, Colorado) and on September 12 KB Home received TIME’s World’s Best Companies recognition; the company also declared a fourth-quarter 2025 dividend in early October.
Technical Analysis
ADX (20.52 — emerging): ADX at 20.52 signals an emerging trend strength rather than a fully established directional move, so technical conviction for a sustained breakout remains limited relative to the stock’s undervaluation.
Directional Indicators (DI+ / DI-): DI- at 25.5 and increasing indicates rising bearish pressure; DI+ at 25.04 showed a dip & reversal, indicating renewed buying attempts. That simultaneous pressure suggests short-term directional tug-of-war that can produce swingy price action around the current valuation band.
MACD: MACD sits at -0.70 with a dip & reversal pattern while the MACD signal measures -0.36. The negative MACD reading aligns with prior downside momentum, but the dip & reversal indicates nascent bullish momentum that has not yet crossed above the signal line, so momentum confirmation remains incomplete for a sustained advance.
MRO: MRO at -9.45 and decreasing denotes the price below the model target with growing potential for upward convergence; the negative, declining MRO aligns with the possibility of mean reversion toward the WMDST valuation.
RSI and Moving Averages: RSI at 50.43 with a dip & reversal places momentum near neutral with a modest buying tilt. Price closed at $61.32, trading slightly below the 20-day average of $61.89 and below the 50-day average of $63.07 but above the 200-day average of $58.95. Short-term EMAs showed a dip & reversal, consistent with the MACD and RSI signals and implying consolidation near the current range rather than directional expansion. Bollinger bands put the intraday price between the $58.78 lower band and the $65.00 upper band; intraday volume remains below recent averages, suggesting lower conviction behind recent moves.
Fundamental Analysis
Earnings And Growth: Reported diluted EPS of $1.61 exceeded the estimate of $1.51 by $0.10, an EPS surprise of 6.62%. Quarterly earnings show earnings growth of 7.33% on a trailing basis and earnings growth quarter-over-quarter of 9.93%, while earnings growth year-over-year registers -2.43%.
Revenue And Cash Metrics: Revenue growth reads 0.00% in the supplied metrics. Invested capital stands at $1,605,395,000 and cash-conversion-cycle peer values indicate a broad range among peers; reported cash-flow conversion and cash-flow-to-earnings metrics register as $0.00 in the supplied figures.
Valuation Multiples: Current P/E at 37.84 contrasts with a forward P/E of 25.58 and forward EPS of $2.275, implying expected multiple compression as forward earnings scale. PEG ratio registers 5.16, which sits above the industry peer mean of -2.17 and the industry peer median of -1.68, while the forward PEG reads 3.49. WMDST values the stock as under-valued; the forward multiple versus the current multiple supports WMDST’s valuation stance given positive forward EPS and ongoing share repurchases disclosed by the company. The company repurchased $188.5 million of common stock in the third quarter and provided full-year housing revenue guidance in the $6.10 billion to $6.20 billion range, items that affect per-share metrics and the forward multiple.
Balance Sheet & Returns: Total liquidity measured roughly at $1.16 billion with $330.6 million cash on hand and available capacity under the revolver. The debt-to-capital ratio rose versus prior periods, reflecting $250.0 million of cash borrowings outstanding in the supplied release; book value per share of $60.25 increased year over year under the company’s repurchase activity.
Valuation Summary: The combination of an EPS beat, share repurchases, a forward P/E materially below the current P/E, and WMDST’s under-valued designation frames a fundamental picture where earnings improvement and buybacks support per-share value even as top-line growth shows limited momentum.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-08-31 |
| REPORT DATE: | 2025-09-24 |
| NEXT REPORT DATE: | 2025-12-24 |
| CASH FLOW | Begin Period Cash Flow | — |
| Operating Cash Flow | — | |
| Capital Expenditures | — | |
| Change In Working Capital | — | |
| Dividends Paid | — | |
| Cash Flow Delta | — | |
| End Period Cash Flow | — | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | — | |
| Forward Revenue | — | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | — | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | — | |
| Operating Income | — | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | — | |
| Tax Provision | — | |
| Tax Rate | — | |
| Net Income | — | |
| Net Income From Continuing Operations | — | |
| EARNINGS | ||
| EPS Estimate | $ 1.51 | |
| EPS Actual | $ 1.61 | |
| EPS Difference | $ 0.10 | |
| EPS Surprise | 6.623 % | |
| Forward EPS | $ 2.27 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | — | |
| Intangible Assets | — | |
| Net Tangible Assets | — | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | — | |
| Cash | — | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | — | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | — | |
| Total Debt | — | |
| Total Liabilities | — | |
| EQUITY | ||
| Total Equity | — | |
| Retained Earnings | — | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | — | |
| Shares Outstanding | — | |
| Revenue Per-Share | — | |
| VALUATION | Market Capitalization | — |
| Enterprise Value | — | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | — | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | — | |
| Asset To Liability | — | |
| Debt To Capital | — | |
| Debt To Assets | — | |
| Debt To Assets QoQ | — | |
| Debt To Assets YoY | — | |
| Debt To Assets IPRWA | — | |
| Debt To Equity | — | |
| Debt To Equity QoQ | — | |
| Debt To Equity YoY | — | |
| Debt To Equity IPRWA | — | |
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | — | |
| Price To Book QoQ | — | |
| Price To Book YoY | — | |
| Price To Book IPRWA | — | |
| Price To Earnings (P/E) | 37.837 | |
| Price To Earnings QoQ | 3.708 % | |
| Price To Earnings YoY | -2.508 % | |
| Price To Earnings IPRWA | high: 82.098 median: 82.098 mean: 65.731 KBH: 37.837 low: -33.211 |
|
| PE/G Ratio | 5.16 | |
| Price To Sales (P/S) | — | |
| Price To Sales QoQ | — | |
| Price To Sales YoY | — | |
| Price To Sales IPRWA | — | |
| FORWARD MULTIPLES | ||
| Forward P/E | 25.577 | |
| Forward PE/G | 3.488 | |
| Forward P/S | — | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | — | |
| ASSET & SALES | ||
| Asset Turnover Ratio | — | |
| Asset Turnover Ratio QoQ | — | |
| Asset Turnover Ratio YoY | — | |
| Asset Turnover Ratio IPRWA | — | |
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 289.435 mean: 121.909 median: 69.544 low: 60.865 KBH: 0 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | — | |
| Net Invested Capital | — | |
| Invested Capital | $ 1.6 B | |
| Net Tangible Assets | — | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 1.08 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | — | |
| Revenue Growth | 0.0 % | |
| Revenue Growth QoQ | -100.0 % | |
| Revenue Growth YoY | -100.0 % | |
| Revenue Growth IPRWA | high: 202.742 % mean: 5.708 % KBH: 0.0 % low: -13.776 % median: -13.776 % |
|
| Earnings Growth | 7.333 % | |
| Earnings Growth QoQ | 992.846 % | |
| Earnings Growth YoY | -243.335 % | |
| Earnings Growth IPRWA | high: 1200.0 % mean: 34.826 % KBH: 7.333 % low: -48.913 % median: -48.913 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | — | |
| EBIT Margin QoQ | — | |
| EBIT Margin YoY | — | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | — | |
| Free Cash Flow Yield | — | |
| Free Cash Flow Yield QoQ | — | |
| Free Cash Flow Yield YoY | — | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | — | |
| Free Cash Growth QoQ | — | |
| Free Cash Growth YoY | — | |
| Free Cash Growth IPRWA | — | |
| Free Cash To Net Income | — | |
| Cash Flow Margin | 0.0 % | |
| Cash Flow To Earnings | 0.0 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | — | |
| Return On Assets QoQ | — | |
| Return On Assets YoY | — | |
| Return On Assets IPRWA | — | |
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | — | |
| Return On Equity QoQ | — | |
| Return On Equity YoY | — | |
| Return On Equity IPRWA | — | |
| DuPont ROE | — | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |