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KB Home
KBH : NYSE : Industrial Goods
$17.80 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 3,089,200
08/20/14 - 4:03 PM ET

Financial Analysis


KB HOME's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

At the same time, stockholders' equity ("net worth") has greatly increased by 50.73% from the same quarter last year.

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Income Statement Q2 FY14 Q2 FY13
Net Sales ($mil)565.01524.41
EBITDA ($mil)36.6127.02
EBIT ($mil)36.0526.55
Net Income ($mil)26.62-2.97


Balance Sheet Q2 FY14 Q2 FY13
Cash & Equiv. ($mil)531.51583.53
Total Assets ($mil)3828.032912.12
Total Debt ($mil)2573.981943.28
Equity ($mil)709.67470.82


Profitability Q2 FY14 Q2 FY13
Gross Profit Margin19.2918.64
EBITDA Margin6.475.15
Operating Margin6.385.06
Sales Turnover0.570.66
Return on Assets2.41-0.15
Return on Equity13.04-0.94
Debt Q2 FY14 Q2 FY13
Current Ratio0.00.0
Debt/Capital0.780.81
Interest Expense43.1634.49
Interest Coverage0.840.77


Share Data Q2 FY14 Q2 FY13
Shares outstanding (mil)91.7983.71
Div / share0.030.03
EPS0.27-0.04
Book value / share7.735.62
Institutional Own % n/a n/a
Avg Daily Volume3113373.04966352.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 21.29 for the Household Durables industry and a discount compared to the S&P 500 average of 19.39. For additional comparison, its price-to-book ratio of 2.17 indicates a discount versus the S&P 500 average of 2.68 and a discount versus the industry average of 3.20. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, KB HOME proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KBH 16.81 Peers 21.29   KBH NM Peers 13.75

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

KBH is trading at a discount to its peers.

 

Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

KBH's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KBH 10.85 Peers 17.18   KBH 0.09 Peers 0.84

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

KBH is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

KBH trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KBH 2.17 Peers 3.20   KBH 1766.66 Peers 26.81

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

KBH is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

KBH is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KBH 0.71 Peers 1.23   KBH 12.98 Peers 21.39

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

KBH is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

KBH significantly trails its peers on the basis of sales growth

 

 

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