📊 KBH Key Takeaways
Is Kb Home (KBH) a Good Investment?
KB Home faces significant operational headwinds with 10% YoY revenue decline and negative free cash flow of -$138.6M, indicating the company is burning cash from operations and not self-sustaining despite maintained profitability. The combination of deteriorating revenues, negative cash generation, and minimal net margins (3.1%) suggests unsustainable financial pressure that will erode the company's liquidity buffer.
Fundamentals are mixed: revenue fell 10% YoY and cash conversion is negative, but gross margin remains solid and net income held roughly flat. A seemingly low-leverage balance sheet and sizable equity base add resilience, yet weak ROE/ROA and a 27% EPS decline point to efficiency and demand/mix challenges. Maintain a neutral stance until cash flow turns positive and returns improve.
Why Buy Kb Home Stock? KBH Key Strengths
- Strong operating margin of 32.1% demonstrates operational efficiency and effective cost management
- Maintains profitability with $33.4M net income despite significant revenue headwinds
- Adequate liquidity with $201.8M cash provides near-term runway
- Minimal leverage with 0.00x debt-to-equity ratio reduces financial risk
- Healthy gross margin of 22.4% despite softer revenue
- Conservative capital structure (0.00x debt/equity) with $201.8M cash
- Net income slightly up YoY, suggesting some cost/pricing resilience
KBH Stock Risks: Kb Home Investment Risks
- Severe negative free cash flow of -$138.6M indicates the core business cannot fund operations or investments
- 10% YoY revenue decline signals housing market weakness or competitive market share loss
- Razor-thin net margin of 3.1% provides minimal financial cushion for deterioration
- Negative operating cash flow of -$125.4M is fundamentally unsustainable regardless of accounting profitability
- Negative operating and free cash flow indicating weak cash conversion and inventory/land spend pressure
- Top-line contraction and 27% EPS decline imply demand/mix headwinds and dilution risk
- Low returns on capital (ROE 0.9%, ROA 0.5%) question capital efficiency
Key Metrics to Watch
- Operating cash flow trajectory - must return to positive for business viability
- Revenue stabilization or recovery - critical indicator of market demand
- Cash balance depletion rate - tracks sustainability of current burn rate
- Working capital changes - may indicate order backlog or inventory pressure
- Operating cash flow relative to net income (cash conversion)
- Gross margin trend and net orders/backlog growth
Kb Home (KBH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
KBH Profit Margin, ROE & Profitability Analysis
KBH vs Market Sector: How Kb Home Compares
How Kb Home compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kb Home Stock Overvalued? KBH Valuation Analysis 2026
Based on fundamental analysis, Kb Home has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kb Home Balance Sheet: KBH Debt, Cash & Liquidity
KBH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kb Home's revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.03 reflects profitable operations.
KBH Revenue Growth, EPS Growth & YoY Performance
KBH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.1B | $33.4M | $0.52 |
| Q3 2025 | $1.6B | $109.8M | $1.61 |
| Q2 2025 | $1.5B | $107.9M | $1.50 |
| Q1 2025 | $1.4B | $109.6M | $1.49 |
| Q3 2024 | $1.6B | $149.9M | $1.80 |
| Q2 2024 | $1.7B | $164.4M | $1.94 |
| Q1 2024 | $1.4B | $125.5M | $1.45 |
| Q3 2023 | $1.6B | $149.9M | $1.80 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kb Home Dividends, Buybacks & Capital Allocation
KBH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kb Home (CIK: 0000795266)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KBH
What is the AI rating for KBH?
Kb Home (KBH) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KBH's key strengths?
Claude: Strong operating margin of 32.1% demonstrates operational efficiency and effective cost management. Maintains profitability with $33.4M net income despite significant revenue headwinds. ChatGPT: Healthy gross margin of 22.4% despite softer revenue. Conservative capital structure (0.00x debt/equity) with $201.8M cash.
What are the risks of investing in KBH?
Claude: Severe negative free cash flow of -$138.6M indicates the core business cannot fund operations or investments. 10% YoY revenue decline signals housing market weakness or competitive market share loss. ChatGPT: Negative operating and free cash flow indicating weak cash conversion and inventory/land spend pressure. Top-line contraction and 27% EPS decline imply demand/mix headwinds and dilution risk.
What is KBH's revenue and growth?
Kb Home reported revenue of $1.1B.
Does KBH pay dividends?
Kb Home pays dividends, with $17.3M distributed to shareholders in the trailing twelve months.
Where can I find KBH SEC filings?
Official SEC filings for Kb Home (CIK: 0000795266) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KBH's EPS?
Kb Home has a diluted EPS of $0.52.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KBH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Kb Home has a SELL rating with 66% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KBH stock overvalued or undervalued?
Valuation metrics for KBH: ROE of 0.9% (sector avg: 15%), net margin of 3.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KBH stock in 2026?
Our dual AI analysis gives Kb Home a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KBH's free cash flow?
Kb Home's operating cash flow is $-125.4M, with capital expenditures of $13.2M. FCF margin is -12.9%.
How does KBH compare to other Market stocks?
Vs Default sector averages: Net margin 3.1% (avg: 12%), ROE 0.9% (avg: 15%), current ratio N/A (avg: 1.8).