📊 KBH Key Takeaways
Is Kb Home (KBH) a Good Investment?
KB Home faces severe operational deterioration with 10% revenue decline paired with negative operating cash flow of -$93.5M, revealing that the business is burning cash despite positive accounting income. The combination of deeply negative free cash flow (-$116.4M), razor-thin net margins (2.8%), and minimal capital returns (ROE 1.6%, ROA 0.9%) indicates fundamental stress in the homebuilding segment.
KB Home remains profitable and has a substantial $3.80B equity base, but declining revenue, sharply lower diluted EPS, and negative operating cash flow indicate weakening growth quality. The assessment is tempered by material data gaps and an apparent inconsistency in reported gross versus operating profit, making financial health and leverage difficult to verify.
Kb Home Key Strengths (KBH)
- Maintains positive operating income of $345.7M and respectable 15.8% operating margin despite revenue contraction
- Strong balance sheet with $200.8B cash reserves and minimal debt (0.00x Debt/Equity) provides financial flexibility
- Positive net income of $60.8M demonstrates the core business remains marginally profitable
- Net income remained slightly positive year over year despite a 10.0% revenue decline
- Positive operating income and a reported 15.8% operating margin
- Stockholders' equity of $3.80B provides a meaningful capital base
KBH Stock Risks: Kb Home Investment Risks
- Negative operating cash flow of -$93.5M indicates core business is destroying cash, not generating it
- Negative free cash flow of -$116.4M is unsustainable and signals capital constraint ahead without intervention
- Revenue declining 10% YoY suggests market headwinds, pricing pressure, or demand weakness in housing sector
- Revenue declined 10.0% and diluted EPS fell 27.2%, signaling deteriorating operating momentum
- Operating cash flow was negative $93.47M and free cash flow was negative $116.36M
- Missing liabilities and debt data, plus operating income exceeding gross profit, materially reduce data reliability
Key Metrics to Watch
- Operating cash flow trajectory - must return to positive to validate business sustainability
- Revenue stabilization and housing order backlog - early indicator of market recovery
- Cash burn rate and balance sheet adequacy - critical given negative FCF
- Operating cash flow and inventory-related working-capital changes
- Revenue growth and diluted EPS trend
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 |
|---|---|---|---|
| Q2 2026 | $1.1B | $27.3M | $0.43 |
| 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 |
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 Grade of C from Claude (C) and ChatGPT (B) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KBH's key strengths?
Claude: Maintains positive operating income of $345.7M and respectable 15.8% operating margin despite revenue contraction. Strong balance sheet with $200.8B cash reserves and minimal debt (0.00x Debt/Equity) provides financial flexibility. ChatGPT: Net income remained slightly positive year over year despite a 10.0% revenue decline. Positive operating income and a reported 15.8% operating margin.
What are the risks of investing in KBH?
Claude: Negative operating cash flow of -$93.5M indicates core business is destroying cash, not generating it. Negative free cash flow of -$116.4M is unsustainable and signals capital constraint ahead without intervention. ChatGPT: Revenue declined 10.0% and diluted EPS fell 27.2%, signaling deteriorating operating momentum. Operating cash flow was negative $93.47M and free cash flow was negative $116.36M.
What is KBH's revenue and growth?
Kb Home reported revenue of $2.2B.
Does KBH pay dividends?
Kb Home pays dividends, with $32.6M 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 $0.96.
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 grade reflects both perspectives for balanced insights.
What is KBH's fundamental grade?
Based on our AI fundamental analysis in August 2026, Kb Home has a C grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KBH stock overvalued or undervalued?
Valuation metrics for KBH: ROE of 1.6% (sector avg: 15%), net margin of 2.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is KBH's AI grade for 2026?
Our dual AI analysis gives Kb Home a combined C grade 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 $-93.5M, with capital expenditures of $22.9M. FCF margin is -5.3%.
How does KBH compare to other Market stocks?
Vs Default sector averages: Net margin 2.8% (avg: 12%), ROE 1.6% (avg: 15%), current ratio N/A (avg: 1.8).