Last Updated: 19 Sep 2024
Executive Summary
KB Home (KBH) is a leading home construction company in the United States. The company has a strong financial position with a market capitalization of $6.51 billion, EBITDA of $794.76 million, and EPS of $7.56. KBH is currently trading at $86.62, slightly above its 50-day moving average of $80.69. The company has a forward PE ratio of 9.88, which is attractive compared to its peers.
Company Overview
KB Home is headquartered in Los Angeles, California and operates in 35 states. The company builds and sells single-family homes, townhomes, and condominiums. KBH also provides mortgage financing and insurance services. The company's target market is first-time homebuyers and move-up buyers.
Fundamental Analysis
KBH has a strong financial position with a debt-to-equity ratio of 0.33 and a current ratio of 1.24. The company's gross profit margin is 27.1%, which is higher than the industry average. KBH's operating margin is 11.8%, which is also higher than the industry average. The company's return on assets is 7.12% and its return on equity is 15.7%.
Technical Analysis
KBH is currently trading at $86.62, slightly above its 50-day moving average of $80.69. The company's 200-day moving average is $68.92. KBH's relative strength index (RSI) is 55.5, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
KBH is expected to report earnings per share of $1.90 in the second quarter of 2024. The company's revenue is expected to grow by 2.5% in the second quarter. KBH's stock price is expected to trade in a range of $80 to $90 in the short term.
Long Term Outlook
KBH is expected to benefit from the long-term growth in the housing market. The company's focus on first-time homebuyers and move-up buyers should continue to drive growth. KBH's stock price is expected to trade in a range of $90 to $100 in the long term.
Analyst Recommendations
Analysts have a consensus rating of "Buy" on KBH. The average analyst target price is $76.92.
