KB Home Common Stock (KBH)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see KB Home as a homebuilder with no wide moat. It sells single-family and attached homes, and its results follow the housing cycle. The filed figures show the downturn clearly. In fiscal Q3 2026, the quarter ended 2026-08-31, revenue was $1.3B, net income $65.3M, and diluted EPS $1.05. In fiscal Q3 2025, the quarter ended 2025-08-31, revenue was $1.6B, net income $109.8M, and EPS $1.61. For FY2025, ended 2025-11-30, revenue was $6.2B, net income $428.8M, and EPS $6.15, versus FY2024 revenue $6.9B, net income $655.0M, and EPS $8.45. That is a significant decline. The balance sheet is not alarming: debt-to-equity is 0.53, and trailing free cash flow is $359.5M, a 14.0% FCF yield on the $2.6B market cap at the 2026-10-13 close. Valuation also looks statistically cheap: P/B 0.68, P/E 10.27, Graham Number $75.68, and a 44.24% margin of safety. But Altman Z 2.25 is gray-zone, Piotroski 5/9 is only average, and ROE 6.99% and ROCE 3.39% are modest. The FairStock score of 58/100 fits that mixed picture. In a cyclical industry, a low P/E can mean the market expects earnings to fall further, not that value is protected. I would want to see revenue, net income, EPS, and cash flow stabilize before treating this as a durable bargain.

In plain English: KB Home builds and sells houses in the United States. The latest reported quarter showed lower sales and profit than the same quarter a year earlier, so the business looks weak right now. At the recent stock price, the shares look inexpensive compared with reported earnings and the value of its net assets, but homebuilding goes through booms and busts and those numbers can change quickly.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-08-31) · fiscal Q2 2026 10-Q (period ended 2026-05-31) · fiscal Q1 2026 10-Q (period ended 2026-02-28) · fiscal Q3 2025 10-Q (period ended 2025-08-31) · FY2025 10-K (period ended 2025-11-30) · FY2024 10-K (period ended 2024-11-30) · FY2023 10-K (period ended 2023-11-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer