KBH : NYSE : Industrial Goods
$15.94 up 0.24 | 1.50%
Today's Range: 15.56 - 16.06
Avg. Daily Volume: 2,221,300
09/26/16 - 1:27 PM ET

Financial Analysis


KB HOME's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.57% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)913.28843.16
EBITDA ($mil)0.038.93
EBIT ($mil)53.7638.03
Net Income ($mil)39.3623.25


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)335.27379.91
Total Assets ($mil)5027.764948.5
Total Debt ($mil)2674.82630.73
Equity ($mil)1682.451640.23


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin16.7316.0
EBITDA Margin0.04.61
Operating Margin5.894.51
Sales Turnover0.670.57
Return on Assets2.2218.05
Return on Equity6.6654.46
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.610.62
Interest Expense46.4946.59
Interest Coverage1.160.82


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)84.2592.07
Div / share0.030.03
EPS0.420.23
Book value / share19.9717.81
Institutional Own % n/a n/a
Avg Daily Volume2266017.02924315.0

Valuation


BUY. KB HOME's P/E ratio indicates a significant discount compared to an average of 33.09 for the Household Durables industry and a significant discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 0.78 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 3.12. 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 13.49 Peers 33.09   KBH NA Peers 16.64

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.

 

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

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KBH 9.48 Peers 23.43   KBH 0.24 Peers 0.89

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 0.78 Peers 3.12   KBH -86.78 Peers 75.11

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.

 

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

However, KBH is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KBH 0.39 Peers 1.36   KBH 19.21 Peers 16.81

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

KBH has a sales growth rate that exceeds its peers.

 

 

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