KB Home (KBH) AI Stock Analysis

KB Home is a homebuilding company based in Los Angeles, California, that constructs and sells residential properties. The company operates across four primary segments: West Coast, Southwest, Central, and Southeast, with operations in states such as Arizona, California, Colorado, Florida, Nevada, North Carolina, Texas, and Washington. It caters to first-time buyers, move-up buyers, and active adults, offering attached and detached single-family homes, townhomes, and condominiums. In addition to home construction, KB Home provides complementary financial services, including insurance products and title services, to assist buyers throughout the home buying process.

From FY2020 to FY2025, KB Home achieved a 5-year revenue CAGR of 8.3%. Annual revenue moved from $5.72B in FY2021 to $6.90B in FY2022, $6.41B in FY2023, $6.93B in FY2024, and contracted 10.0% to $6.24B in FY2025. In FY2025, gross margin reached 18.8%, operating margin was 8.4%, and net income was $428.8M with diluted EPS of $6.15. Free cash flow was $287.3M for the year. Over the trailing twelve months, revenue was $5.18B and operating margin was 6.0%. In the latest quarter ended August 31, 2026, revenue fell 20.0% year-over-year while earnings declined 34.7%.

As of August 31, 2026, KB Home held $160.1M in cash and short-term investments alongside total debt of $2.14B, resulting in net debt of $1.98B. Total assets stood at $6.97B against shareholders' equity of $3.80B, supporting a current ratio of 6.39 and a debt-to-equity ratio of 0.56. During FY2025, the company generated $335.7M in operating cash flow, spending $48.4M on capital expenditures. It also allocated $68.6M to dividends and $541.3M to share buybacks, with its 5-year share count change standing at -32.0%.

At a last close of $43.30, KB Home has a market capitalization of $2.63B and an enterprise value of $4.82B. The stock trades at a trailing P/E of 12.2x and a forward P/E of 11.6x, below the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its price-to-sales multiple of 0.5x is lower than the peer median of 0.7x, while its EV-to-EBITDA of 18.7x is above the peer median of 11.1x. Over the past year, KBH returned -28.1%, lagging the S&P 500 (SPY) return of 16.8%.

KB Home has paid dividends for 41 consecutive years. It offers a forward annual dividend of $1.00 per share, producing a dividend yield of 2.31% and a payout ratio of 28.2%. Dividends are distributed quarterly, with the last ex-dividend date on November 12, 2026. Over the past five years, the company's annualized dividend growth rate was 18.9%.

Wall Street analyst coverage includes 1 Strong Buy, 2 Buy, 9 Hold, 0 Sell, and 4 Strong Sell ratings. The mean price target is $51.57, which is 19.1% above the last close of $43.30. For the current fiscal year ending November 30, 2026, consensus estimates project revenue of $5.04B and EPS of $3.21, an EPS decline of 47.8%. For the next fiscal year, 16 analysts project revenue of $5.14B and EPS of $3.60. Over the last 4 quarters, the company recorded 1 EPS beat.

This page is an AI-written research summary of KB Home (KBH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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