KB Home (NYSE:KBH) is a prominent player in the homebuilding industry, known for its focus on designing and building homes for first-time and move-up buyers. The company operates primarily in the United States and is part of the Zacks Building Products - Home Builders industry. KBH competes with other major homebuilders like Lennar Corporation and D.R. Horton.
On September 24, 2025, KBH reported earnings per share (EPS) of $1.61, surpassing the estimated $1.50. This represents an earnings surprise of 7.33%, as highlighted by Zacks. However, it's a decrease from the $2.04 EPS reported in the same quarter last year. Despite this, KBH has consistently exceeded consensus EPS estimates in three of the last four quarters.
In terms of revenue, KBH achieved approximately $1.62 billion, exceeding the estimated $1.59 billion by 1.50%. This is a slight decline from the $1.75 billion reported a year ago. Nevertheless, KBH has demonstrated a strong track record by surpassing consensus revenue estimates three times in the past four quarters, showcasing its operational efficiency.
The company's financial health is further underscored by its valuation metrics. KBH has a price-to-earnings (P/E) ratio of approximately 7.81, indicating the market's valuation of its earnings. Its price-to-sales ratio stands at about 0.64, suggesting a relatively low valuation compared to its sales. The enterprise value to sales ratio is 0.87, slightly higher than its sales, reflecting the company's overall valuation, including debt.
KBH's financial stability is evident in its debt-to-equity ratio of 0.47, indicating a moderate level of debt compared to equity. The company also boasts a strong current ratio of 18.35, highlighting its ability to cover short-term liabilities with its current assets. Additionally, KBH's earnings yield of 12.81% provides a measure of the return on investment for shareholders, showcasing its financial strength.
