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KBH:NYSEKB Home Analysis

Data as of 2026-05-24 - not real-time

$48.60

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

KB Home is trading around $48.6, well below its DCF‑derived fair value of $61.34, implying roughly a 13½% upside. The stock carries a low trailing PE of 9.38 and a price‑to‑book of 0.79, positioning it firmly in the value space, while delivering a 2.06% dividend yield with a modest 19% payout ratio, suggesting dividend sustainability. Technical indicators are mixed: the 20‑day SMA (≈$48.96) sits just above price, the 50‑day SMA (≈$51.16) and 200‑day SMA (≈$59.08) are higher, and the trend is flagged bearish, yet the MACD histogram is positive and the MACD signal is labeled bullish, while RSI at 46.8 points to neither overbought nor oversold conditions. Volatility is elevated at 38.5% over the past 30 days and beta hovers around 1.0, indicating market‑aligned risk, and the stock has recently slipped 4% over the past month, testing a support level near $44.0. Upcoming earnings and the imminent ex‑dividend date add near‑term catalysts that could swing sentiment.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Upcoming earnings release could cause volatility
  • Technical trend remains bearish despite a bullish MACD signal
  • Dividend yield provides a modest cushion

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • Valuation upside of ~13% versus DCF fair value
  • Sustainable dividend with low payout ratio
  • Potential recovery in residential construction demand

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Fundamentally sound balance sheet with manageable debt
  • Long‑term demographic trends supporting homeownership
  • Consistent value metrics (low PE, low PB) and dividend stability

Key Metrics & Analysis

Financial Health

Revenue Growth-22.60%
Profit Margin5.96%
P/E Ratio9.4
ROE8.87%
ROA4.30%
Debt/Equity49.85
P/B Ratio0.8
Op. Cash Flow$544.6M
Free Cash Flow$427.3M

Technical Analysis

TrendBearish
RSI46.8
Support$44.03
Resistance$56.01
MA 20$48.96
MA 50$51.16
MA 200$59.08
MACDBullish
VolumeStable
Fear & Greed Index91.61

Valuation

Fair Value$61.34
Target Price$55.15
Upside/Downside13.49%
GradeUndervalued
TypeValue
Dividend Yield2.06%

Risk Assessment

Beta1.00
Volatility38.52%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.