KB Home (KBH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

M.D.C. Holdings, Inc.

Skyline Champion Corp.

NVR, Inc.

Toll Brothers, Inc.

PulteGroup, Inc.

D.R. Horton, Inc.

Taylor Morrison Home Corp.

Lennar Corp.

Meritage Homes Corp.

KB Home

Tri Pointe Homes, Inc.

Why is KB Home ?

OPERATING CASH FLOW(Y) Lowest at USD 111.16 MM
ROCE(HY) Lowest at 14.07%
RAW MATERIAL COST(Y) Grown by 9.41% (YoY)

With ROCE of 13.43%, it has a expensive valuation with a 1.05 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -12.43%, its profits have risen by 3.8% ; the PEG ratio of the company is 0.8

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.43% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is KB Home for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

KB Home

-15.13%

-0.17

35.95%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.31%

EBIT Growth (5y)

9.49%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

1.78

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

1.16

Tax Ratio

23.27%

Dividend Payout Ratio

16.25%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

15.14%

ROE (avg)

16.91%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.06

EV to EBIT

10.63

EV to EBITDA

9.90

EV to Capital Employed

1.04

EV to Sales

0.89

PEG Ratio

Dividend Yield

1.96%

ROCE (Latest)

9.79%

ROE (Latest)

10.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 16.1%

-24What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 338.66 MM

ROCE(HY)

Lowest at 10.7%

OPERATING PROFIT MARGIN(Q)

Lowest at 7.98 %

RAW MATERIAL COST(Y)

Grown by 18.68% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.9 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.87 times

NET SALES(Q)

Fallen at -15.28%

OPERATING PROFIT(Q)

Lowest at USD 135.17 MM

PRE-TAX PROFIT(Q)

Lowest at USD 130.18 MM

NET PROFIT(Q)

Lowest at USD 101.72 MM

Here's what is working for KB Home

Dividend Payout Ratio

Highest at 16.1%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 10.81 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for KB Home

Operating Cash Flow

Lowest at USD 338.66 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit Margin

Lowest at 7.98 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At USD 130.18 MM has Fallen at -47.45%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 101.72 MM has Fallen at -46.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

Fallen at -15.28%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 135.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD 130.18 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 101.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 0.9 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 16.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 18.68% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales