WATCH KB Home (KBH)
Consumer Cyclical · Residential Construction · NYQ · United States
68
Final Score
31.8%
Margin of Safety
39
Quality Score
$53.88
Current Price
$3.4B
Market Cap
Key Metrics
Pe Ratio
10.40
Forward Pe
12.12
Pb Ratio
0.88
Ev Ebitda
9.93
Roe
8.9%
Gross Margin
18.6%
Operating Margin
3.0%
Net Margin
6.0%
Dividend Yield
188.0%
Debt To Equity
49.85
Current Ratio
7.79
Beta
1.38
📈 Trend Charts
Revenue Trend
EPS Trend
Net Income Trend
Free Cash Flow Trend
Intrinsic Value Estimates
Low
$63.24
Base
$79.05
High
$94.86
Pipeline Stage Details
Stage A — Hard Filters ✅
Pe Ratio
10.40
Eps Positive Years
4.00
Eps Lookback
4.00
Fcf Positive Years
4.00
Fcf Lookback
4.00
Debt To Equity
0.50
Current Ratio
7.79
Dilution Cagr
-0.09
Stage B — Quality Score: 39/100
Stage C — Cyclicality: LOW
Normalized EPS
$7.68
Stage F — Final Score Breakdown
| Component | Weighted Score |
|---|---|
| Valuation | 22.5 |
| Earnings Quality | 9.7 |
| Balance Sheet | 18.0 |
| Stability | 12.0 |
| Moat Proxies | 5.5 |
Top Drivers
- Undervalued: price $53.88 vs estimated intrinsic value $79.05 gives a 32% margin of safety — meeting Graham's 30% minimum safety requirement.
- Reasonable P/E of 10.4x — below long-run market average (~15-17x), suggesting the stock is not overpriced.
- Fortress balance sheet: D/E of 0.50x (conservative) and current ratio of 7.79x — ample liquidity and low financial risk. Graham emphasis on capital preservation.
- Low cyclicality: earnings are relatively stable and predictable, making intrinsic value estimates more reliable.
Top Risks
- Quality concern: Operating margin in structural decline
- Quality concern: Revenue declining: -3.3% CAGR
Financial History
| Year | Revenue | Gross Profit | Operating Income | Net Income | EPS |
|---|---|---|---|---|---|
| 2021 | N/A | N/A | N/A | N/A | $N/A |
| 2022 | $6.9B | $1.7B | $1.1B | $816.7M | $9.09 |
| 2023 | $6.4B | $1.4B | $742.5M | $590.2M | $7.03 |
| 2024 | $6.9B | $1.5B | $785.6M | $655.0M | $8.45 |
| 2025 | $6.2B | $1.2B | $525.3M | $428.8M | $6.15 |
Cash Flow History
| Year | Operating CF | CapEx | Free Cash Flow |
|---|---|---|---|
| 2021 | N/A | N/A | N/A |
| 2022 | $183.4M | $-45.2M | $138.2M |
| 2023 | $1.1B | $-35.5M | $1.0B |
| 2024 | $362.7M | $-39.3M | $323.4M |
| 2025 | $335.7M | $-48.4M | $287.3M |