KB Home, KBH, NYSE Narrows Guidance And Eyes Margin Stabilization

KB Home shows operational execution offsetting softer net orders, with corporate actions and a compressed forward multiple shaping a near-term rebound case. Recent corporate releases and internal metrics point to stabilization rather than renewed expansion.

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

Six-Week Outlook

Expect range-bound swings with a bias toward stabilization. Technicals show emerging momentum signals (MACD and RSI dip & reversals) but directional conflict between DI+ and a rising DI- plus an ADX that indicates only emerging strength; these conditions favor intrarange testing between roughly the $58.8 lower Bollinger boundary and the $65.0 upper band. A confirmed MACD crossover above its signal and a falling DI- would materially increase the odds of a sustained move toward the analyst mean target near $63.21, while failure of short-term EMAs to hold support near the 200-day average would prolong consolidation. Volume trending above recent averages will validate breakout attempts; subdued volume suggests continued choppy trading around the current valuation.

About KB Home

KB Home (NYSE:KBH) is a leading homebuilding company in the United States, renowned for its innovative approach to residential construction. Founded in 1957 and headquartered in Los Angeles, California, KB Home specializes in designing and building a diverse range of homes tailored to the needs of first-time buyers, move-up buyers, and active adults. Their portfolio includes single-family homes, townhomes, and condominiums across key regions such as the West Coast, Southwest, Central, and Southeast. With a customer-centric focus, KB Home offers personalized homebuilding experiences, allowing buyers to customize their homes to suit their individual preferences and lifestyles. The company is committed to sustainability and energy efficiency, integrating eco-friendly features and smart home technology into their designs. Beyond construction, KB Home provides comprehensive financial services, including mortgage banking, insurance products, and title services, facilitating a seamless homebuying process. Their operations span several states, including Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas, and Washington, making them a prominent player in the national housing market. With a legacy of quality and innovation, KB Home continues to shape the future of residential living in America.



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