KB Home
Find Ratings Reports
0.08 |
0.34%
KB HOME's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.
During the same period, stockholders' equity ("net worth") has increased by 8.39% from the same quarter last year.
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| Income Statement | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Net Sales ($mil) | 1002.79 | 811.05 |
| EBITDA ($mil) | 52.16 | 28.59 |
| EBIT ($mil) | 51.47 | 27.66 |
| Net Income ($mil) | 31.78 | 15.6 |
| Balance Sheet | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 349.37 | 280.07 |
| Total Assets ($mil) | 4958.8 | 4915.84 |
| Total Debt ($mil) | 2510.12 | 2632.13 |
| Equity ($mil) | 1772.39 | 1635.17 |
| Profitability | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Gross Profit Margin | 15.65 | 15.2 |
| EBITDA Margin | 5.2 | 3.52 |
| Operating Margin | 5.13 | 3.41 |
| Sales Turnover | 0.79 | 0.68 |
| Return on Assets | 2.47 | 1.95 |
| Return on Equity | 6.93 | 5.87 |
| Debt | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Current Ratio | 0.0 | 0.0 |
| Debt/Capital | 0.59 | 0.62 |
| Interest Expense | 43.34 | 46.26 |
| Interest Coverage | 1.19 | 0.6 |
| Share Data | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Shares outstanding (mil) | 85.55 | 84.25 |
| Div / share | 0.03 | 0.03 |
| EPS | 0.33 | 0.17 |
| Book value / share | 20.72 | 19.41 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2476365.0 | 2655598.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 32.07 for the Household Durables industry and a discount compared to the S&P 500 average of 24.66. For additional comparison, its price-to-book ratio of 1.13 indicates a significant discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 2.71. 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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| KBH 17.97 | Peers 32.07 | KBH 6.77 | Peers 15.06 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. KBH is trading at a significant discount to its peers. |
Discount. 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 is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| KBH 11.40 | Peers 16.80 | KBH 0.34 | Peers 1.76 | |||||||||||||||||||||
|
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 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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| KBH 1.13 | Peers 2.71 | KBH 34.02 | Peers 20.10 | |||||||||||||||||||||
|
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. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| KBH 0.51 | Peers 1.26 | KBH 18.32 | Peers 24.30 | |||||||||||||||||||||
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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 trails its peers on the basis of sales growth |
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