KB Home (NYSE:KBH) Signals Modest Pullback Before Resumption Of Uptrend

KB Home shows a cautiously constructive fundamental picture offset by mixed technical momentum, suggesting a near-term consolidation that leaves upside potential intact under WMDST’s valuation.

Recent News

Oct 2025 — Company authorized a $1.0 billion share repurchase program. Sep–Aug 2025 — Multiple grand-opening announcements for new communities across Arizona, California, Colorado, Nevada, Texas and Arizona master-planned developments. Aug 7, 2025 — Record date set for the quarterly $0.25 dividend; payment processed Aug 21, 2025. Several Business Wire releases in August–September detailed community grand openings and related SEC filings in August and September 2025.

Technical Analysis

Directional indicators show no dominant trend: ADX at 13.53 signals a non-trending market environment, which lowers confidence in sustained directional moves and increases the likelihood of short-term range trading.

DI+ sits at 21.76 and decreased, a bearish signal that reduces immediate upside bias; DI- at 24.77 experienced a peak-and-reversal, which constitutes a bullish signal as DI- has turned down, creating offsetting directional pressure.

MACD currently reads 0.03 and stands above its signal line (-0.14), which produces a bullish crossover; however, the MACD trend registers a peak-and-reversal, indicating recent bearish momentum that may limit follow-through despite the crossover.

MRO at 0.66 registers slightly positive, implying the market price sits modestly above the internal target and therefore carries a small bias toward mean reversion (downward pressure); the MRO trend shows a peak-and-reversal, reinforcing that mean-reversion potential.

RSI at 51.07 with a peak-and-reversal pattern signals loss of upward momentum from neutral levels, supporting the view of a near-term consolidation rather than a clean breakout.

Price relationships: last close $62.38 trades above the 200‑day average ($58.88), which supports longer-term valuation; price remains below the 50‑day average ($63.34) and near the 20‑day average ($62.15), consistent with short-term pressure and consolidation.

Bollinger band bounds at $60.56 (lower) and $63.74 (upper) contain the price, suggesting limited immediate volatility expansion; Ichimoku components place price inside the cloud area (Senkou A $64.70, Senkou B $60.41), indicating equilibrium between buyers and sellers.

Volume (961,370) runs under the 10‑day average (1,007,104) and well under the 200‑day average (1,426,995), reducing conviction behind recent moves and implying thinner participation during recent price action.

 


Fundamental Analysis

Earnings: Reported EPS $1.61 versus estimate $1.51, a $0.10 beat representing a ~6.62% upside to consensus. Forward EPS sits at $2.275, yielding a forward P/E of 25.58, while trailing P/E equals 37.84.

Earnings growth shows mixed timing: reported earnings growth stands at 0.07333 (7.333%), with QoQ earnings growth 9.92846% and earnings growth YoY -2.43335%. Revenue growth reads 0.0% with QoQ revenue growth -1.0% and YoY revenue growth -1.0%, indicating flat-to-slightly-declining top-line trends alongside modestly positive recent operating leverage on earnings.

Cash metrics show cash conversion cycle peer band centered higher than KB Home’s operating cadence; invested capital totals $1,605,395,000 and reported cost of debt equals 1.08%, which supports low financing costs for ongoing land and development investment.

Valuation metrics show a stretched trailing P/E relative to some peers but a more attractive forward P/E: trailing P/E 37.84 sits below the industry peer mean P/E of 65.73 and below the industry peer median P/E of 82.10, while PEG stands at 5.16, materially above the industry peer mean of -2.17 and industry peer median of -1.68 (industry peer high ~0.01), indicating a higher price-to-earnings-growth multiple than typical peers when using these peer comparisons.

Additional notes: cash-flow margin and cash-flow-to-earnings report at 0.0; WMDST values the stock as under-valued based on our internal framework that weighs forward earnings and balance-sheet durability against current share price.

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

The technical mix implies a short-term consolidation window: with ADX low and RSI showing a peak-and-reversal, expect range-bound behavior around $59–$64 unless volatility or volume shifts materially. Positive MACD crossover conflicts with recent MACD peak-and-reversal and a mildly positive MRO, creating a situation where momentum can either resume or stall quickly; follow-through requires renewed volume. Fundamentally, EPS beats, manageable cost of debt, and WMDST’s under-valued determination keep upside available if housing demand stabilizes, while flat revenue growth and an elevated PEG leave sensitivity to macro-driven affordability pressures. Swing traders should plan for limited directional conviction and prioritize trade size and risk measures given the current consolidation bias.

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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