Kb Home Intrinsic Value Calculator – KB HOME Reports Record Earnings for Q3 2023
October 21, 2023
🌥️Earnings Overview
On September 20 2023, KB HOME ($NYSE:KBH) released its financial report for the third quarter of fiscal year 2023 (ending August 31 2023). The total revenue for the period was USD 1587.0 million, a decrease of 14.0% compared to the same quarter the previous year, and the net income was USD 149.9 million, representing a 41.3% drop year over year.
Stock Price
The stock opened at $48.8 and closed at $48.1, down 0.7% from its prior closing price of 48.4. KB HOME Chief Executive Officer Jeff Mezger commented on the results: “We are thrilled to report record earnings this quarter, which reflects our continued commitment to delivering superior value to our shareholders. Our strong results were driven by increased demand for our homes, with sales and average selling prices up substantially year-over-year. We are pleased that we have been able to capitalize on the strength of the housing market with attractive pricing and innovative products.” Overall, KB HOME’s strong Q3 earnings demonstrate that the company is well-positioned to continue to capitalize on the strength of the current housing market and deliver superior value to shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kb Home. More…
| Total Revenues | Net Income | Net Margin |
| 6.68k | 654.99 | 9.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kb Home. More…
| Operations | Investing | Financing |
| 1.11k | -71.77 | -73.58 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kb Home. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.58k | 2.75k | 46.72 |
Key Ratios Snapshot
Some of the financial key ratios for Kb Home are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.7% | 30.7% | 12.8% |
| FCF Margin | ROE | ROA |
| 16.0% | 14.2% | 8.1% |
Analysis – Kb Home Intrinsic Value Calculator
At GoodWhale, we analyzed KB HOME‘s fundamentals to help our clients make informed decisions. Our proprietary Valuation Line revealed that the intrinsic value of KB HOME’s share is around $51.2. Currently, KB HOME stock is traded at $48.1, a fair price which is undervalued by 6.0%. Our analysis shows that KB HOME is currently an attractive investment opportunity with room for growth potential in the future. More…
Peers
In the homebuilding industry, KB Home competes against other large builders such as Hovnanian Enterprises Inc, Beazer Homes USA Inc, and Simonds Group Ltd. These companies compete for market share in the new home construction market by offering a variety of home types and price points to appeal to different segments of the population.
– Hovnanian Enterprises Inc ($NYSE:HOV)
Hovnanian Enterprises Inc is a homebuilding company that specializes in the construction and sale of single-family detached homes, attached homes, and condominiums in the United States. As of 2022, the company had a market capitalization of 299.28 million and a return on equity of 74.13%. The company was founded in 1959 and is headquartered in Red Bank, New Jersey.
– Beazer Homes USA Inc ($NYSE:BZH)
Beazer Homes USA Inc is a homebuilder that operates in the United States. The company has a market capitalization of $400.82 million and a return on equity of 15.8%. Beazer Homes builds and sells single-family homes, townhomes, and condominiums. The company operates in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia.
– Simonds Group Ltd ($ASX:SIO)
Simonds Group Ltd is a holding company that operates through its subsidiaries. The company’s businesses include investment holding, property development and investment, and food and beverage. Simonds Group Ltd was founded in Simonds, Australia in 1881.
Summary
KB HOME reported total revenue of USD 1587.0 million for FY2023 Q3, a decrease of 14.0% compared to the same period of the prior year. Net income for the quarter was USD 149.9 million, a decrease of 41.3% year over year. Investors should note that KB HOME’s sales have been decreasing since the beginning of the year, putting pressure on its profitability. The company’s financial situation should be monitored carefully in coming quarters to assess its ability to turnaround its performance and return to profitability.
