KB Home
- Open
- 54.16
- Day high
- 54.46
- Day low
- 53.20
- Prev close
- 54.86
- Volume
- 726K
- Mkt cap
- $3.3B
- P/E (TTM)
- 12.8
- EPS (TTM)
- $4.15
- P/B
- 0.9
- P/S
- 0.6
- Yield
- 1.86%
- Per share
- $1.00
- ▼Insiders net selling -$17.9M over the last 3 months (0 open-market buys, 9 sales)
- 🏛Institutions mixed (13F)
KB Home (KBH) is a Consumer Cyclical company listed on NYSE. The stock is down 14% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 9 sales (SEC Form 4). Drillr has 1 published research article covering KBH.
KB Home (KBH) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 6 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
KBH earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 23, 2026 | $0.45 | $0.43 | -5.3% | $1.1B | +1.0% |
| Mar 24, 2026 | $0.54 | $0.52 | -2.8% | $1.1B | -2.1% |
| Sep 24, 2025 | $1.51 | $1.61 | +6.6% | $1.6B | +1.1% |
| Jun 23, 2025 | $1.47 | $1.50 | +2.1% | $1.5B | +0.6% |
| Mar 24, 2025 | $1.58 | $1.49 | -5.8% | $1.4B | -7.4% |
| Sep 24, 2024 | $2.05 | $2.04 | -0.5% | $1.8B | +2.0% |
| Jun 18, 2024 | $1.79 | $2.15 | +19.8% | $1.7B | +3.4% |
| Mar 20, 2024 | $1.56 | $1.76 | +12.7% | $1.5B | +1.1% |
| Sep 20, 2023 | $1.47 | $1.80 | +22.4% | $1.6B | -3.1% |
| Jun 21, 2023 | $1.37 | $1.94 | +41.7% | $1.8B | +21.8% |
| Mar 22, 2023 | $1.17 | $1.45 | +23.7% | $1.4B | +4.3% |
| Sep 21, 2022 | $2.67 | $2.89 | +8.3% | $1.8B | -1.8% |
KBH insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 7, 2026 | PRAW ALBERT Zofficer: EVP, Real Estate & Bus. Dev. | Sell | 22,015 | $58.70 |
| Aug 7, 2026 | Collins Arthur Reginalddirector | Sell | 4,000 | $56.96 |
| Jul 15, 2026 | MEZGER JEFFREY Tdirector, officer: Executive Chairman | Option | 51,018 | $16.21 |
| Jul 15, 2026 | McGibney Robert V.director, officer: President and CEO | Sell | 20,621 | $55.31 |
| Jul 15, 2026 | McGibney Robert V.director, officer: President and CEO | Option | 20,621 | $16.21 |
| Jul 15, 2026 | MEZGER JEFFREY Tdirector, officer: Executive Chairman | Sell | 39,204 | $55.45 |
| Jul 15, 2026 | MEZGER JEFFREY Tdirector, officer: Executive Chairman | Option | 129,062 | $16.21 |
| Jul 15, 2026 | MEZGER JEFFREY Tdirector, officer: Executive Chairman | Sell | 82,047 | $54.95 |
| Jul 15, 2026 | MEZGER JEFFREY Tdirector, officer: Executive Chairman | Sell | 12,825 | $55.81 |
| Jul 15, 2026 | MEZGER JEFFREY Tdirector, officer: Executive Chairman | Sell | 30,008 | $56.70 |
| Jul 15, 2026 | MEZGER JEFFREY Tdirector, officer: Executive Chairman | Sell | 21,010 | $56.24 |
| Jul 15, 2026 | MEZGER JEFFREY Tdirector, officer: Executive Chairman | Sell | 89,858 | $54.87 |
| Jul 15, 2026 | MEZGER JEFFREY Tdirector, officer: Executive Chairman | Option | 94,872 | $16.21 |
| Apr 27, 2026 | HENRY CHERYL JANETdirector | Grant | 2,895 | — |
| Apr 27, 2026 | Eltife Kevin Pauldirector | Grant | 2,895 | — |
Source: KBH SEC Form 4 filings, latest Aug 7, 2026. For informational purposes only — not investment advice.
See the full KBH insider & 13F page →KB Home company profile
Overview
KB Home (NYSE:KBH) is one of the largest homebuilding companies in the United States, founded in 1957 as Kaufman and Broad Home Corporation before rebranding to KB Home in 2001. Headquartered in Los Angeles, California, the company has been publicly traded since 1986 and operates across eight states including Arizona, California, Colorado, Florida, Nevada, North Carolina, Texas, and Washington. KB Home has established itself as a pioneer in the built-to-order homebuilding model, allowing customers to personalize their homes during the construction process rather than purchasing pre-built inventory.
Business
KB Home operates in the residential construction industry, specifically focusing on building and selling single-family homes to individual consumers. The homebuilding industry involves acquiring raw land, developing it with necessary infrastructure like roads and utilities, and then constructing homes for sale to end consumers. This is distinct from commercial construction or apartment building, as KB Home focuses exclusively on detached single-family homes, townhomes, and condominiums. The company's core offering is its Built to Order model, which allows homebuyers to customize their homes during the construction process. Unlike traditional homebuilders who construct spec homes (speculative inventory built without a specific buyer), KB Home primarily builds homes only after a customer has signed a purchase contract. This approach reduces inventory risk and allows for customer personalization in floor plans, finishes, and features. KB Home operates through four geographic segments: West Coast (primarily California), Southwest (Arizona, Nevada, Colorado), Central (Texas), and Southeast (Florida, North Carolina). The company targets multiple buyer demographics including first-time homebuyers, first move-up buyers (those upgrading from their first home), second move-up buyers, and active adult communities (typically 55+ age-restricted communities). Beyond homebuilding, KB Home also provides financial services through its mortgage joint venture, capturing approximately 86% of its customers' mortgage originations. The company also offers title services and insurance products, creating additional revenue streams from each home sale. The housing segment represents the vast majority of revenues, with financial services contributing a smaller but meaningful portion to overall profitability.
Revenue model
KB Home generates revenue primarily through the sale of completed homes to individual consumers. The company's business model involves purchasing raw land, developing it into residential lots, constructing homes, and selling them at prices that exceed the combined costs of land, development, construction, and overhead. The average selling price of KB Home's houses is approximately $500,000, generating housing revenues of around $7 billion annually. The company's Built to Order model provides several financial advantages. By requiring customers to sign purchase contracts before construction begins, KB Home reduces inventory risk and carrying costs associated with unsold homes. Customers typically provide earnest money deposits when signing contracts, improving the company's working capital position. The built-to-order approach also allows KB Home to adjust pricing dynamically based on market conditions and input costs. KB Home's financial services segment generates additional revenue through its mortgage joint venture, which captures the majority of its customers' loan originations. This provides fee income and helps facilitate home sales by offering integrated financing solutions. The company also earns revenue from title services and insurance products sold to homebuyers. Several factors influence KB Home's profitability margins. Positive margin drivers include: reduced construction cycle times (currently targeting 4-5 months versus historical 8+ months), which reduces carrying costs and improves inventory turnover; economies of scale from higher absorption rates per community; and reduced lumber and material costs when commodity prices decline. Negative margin pressures include: rising land costs in desirable markets; labor shortages or wage inflation in construction trades; increased mortgage rates that reduce buyer affordability and may require price concessions or mortgage rate buydowns; and competitive pricing pressure during market downturns. The company's margins are also sensitive to the mix of communities, as different geographic markets and price points carry varying profit margins.
Competitive moat
KB Home operates in the highly competitive and cyclical homebuilding industry, where sustainable competitive advantages are limited. The company's primary differentiator is its Built to Order model, which provides some competitive positioning by offering customer personalization and reducing inventory risk. However, this operational approach can be replicated by competitors and does not constitute a strong economic moat. The company's competitive positioning relies more on execution excellence than structural advantages. KB Home has developed expertise in reducing construction cycle times, achieving efficient land development, and maintaining customer satisfaction. The company's scale provides some advantages in purchasing power for materials and accessing desirable land parcels, but these benefits are shared with other large national homebuilders like D.R. Horton, Lennar, and PulteGroup. Geographic market presence provides modest local advantages through established relationships with trade contractors, suppliers, and local governments. However, homebuilding remains largely a local business where regional and local competitors can effectively compete. The barriers to entry vary by market but are generally not prohibitive for well-capitalized competitors. The company faces significant competitive threats from both large national homebuilders and regional players. The industry is subject to cyclical downturns that can severely impact profitability, as demonstrated during housing market corrections. KB Home's financial services offerings provide some customer stickiness and additional revenue, but mortgage origination is also a competitive business with low switching costs. Overall, KB Home operates in a commodity-like business with limited sustainable competitive advantages. Success depends primarily on operational execution, market timing, and capital allocation rather than structural moats. The company's competitive position is reasonable but not defensible against well-executed competition.
Risks & safety
KB Home maintains a moderate margin of safety with manageable financial risk but cyclical vulnerability. • Liquidity and Solvency: Strong current ratio of 7.1x and $269 million in cash provides adequate liquidity buffer. Debt-to-equity ratio of 0.44x is reasonable for a homebuilder. However, negative free cash flow of -$346 million in Q1 2025 reflects typical seasonal working capital investment in land and construction. • Valuation Metrics: Trading at P/E ratio of 10.0x and EV/EBITDA of 10.6x, representing reasonable but not compelling valuations. Price-to-book ratio of 1.07x suggests shares trade near tangible book value. Graham number of $44 versus current price of $54 indicates modest overvaluation by conservative metrics. • Operational Risks: Significant exposure to housing market cycles, with revenue guidance recently reduced from $7.0-7.5 billion to $6.6-7.0 billion for 2025. High working capital requirements and land inventory exposure create balance sheet risk during downturns. Return on equity of 16% demonstrates reasonable profitability but subject to cyclical volatility. • Other Considerations: Geographic diversification across eight states provides some risk mitigation. Strong customer credit profile (average FICO 734, $130k+ household income) reduces buyer default risk. Built-to-order model reduces but does not eliminate inventory risk.
Recent development
Over the past few years, KB Home has focused on several key strategic initiatives to improve operational efficiency and market positioning. The company has made significant progress in reducing construction cycle times, cutting build times from over 8 months historically to approximately 5 months currently, with targets to reach 4 months. This improvement reduces carrying costs and improves inventory turnover. KB Home has substantially accelerated land acquisition and development investment, increasing its lot position by 37% to nearly 77,000 lots owned or controlled by the end of 2024. The company invested $2.8 billion in land acquisition and development during 2024, positioning for future growth. This includes expanding into new markets, such as launching a new division in Atlanta. The company has maintained its focus on the Built to Order model while selectively adding quick move-in homes (spec inventory) to capture market opportunities. Approximately 60% of net orders remain built-to-order homes, providing customer personalization while reducing inventory risk. KB Home has also achieved record-high customer satisfaction scores through this approach. Financial services integration has been enhanced, with the company's mortgage joint venture capturing 86% of customer loan originations. This provides additional revenue streams and helps facilitate home sales by offering integrated financing solutions. Recent market challenges have prompted strategic pricing adjustments, with the company implementing price reductions of $5,000 to $30,000 in approximately 50% of communities during Q1 2025 to stimulate demand amid softer market conditions. The company has also focused on operational cost reductions, achieving approximately $18,000 per home in direct construction cost savings through improved efficiency and cycle time reductions.
KBH company profile · for informational purposes only — not investment advice.
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