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KB Home (NYSE:KBH) operates as a homebuilding and financial services company in the United States. The company constructs and sells various types of homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, move-up, and active adult homebuyers.

It is scheduled to report its Q2 2012 results on June 29, 2012, before the market opens.

Technical Overview


Key Metrics

  • Market Cap: 608.32M
  • 52-week trading range: 5.02 - 13.12
  • Trailing P/E: N/A
  • Forward P/E: 78.90
  • Price/Sales: 0.44
  • Price/Book: 1.54
  • PEG Ratio: -1.94
  • Total Debt: 1.59B
  • Annual dividend yield: 2.70%
  • Return on Equity: -24.23%
  • Return on Assets: -0.48%

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last quarters. In the last quarter it reported ($0.59) loss per share, failing to meet analyst estimates of ($0.24) loss.

The consensus EPS is ($0.34) loss based on 21 analysts' estimates, up from ($0.89) loss a year ago. Revenue estimates are $301.30M, up from $271.74M a year ago. The median target price by analysts for the stock is $10.00.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On May 14, 2012, Barclays reiterated Overweight rating for the company.
  • On April 24, 2012, Imperial Capital initiated In-line rating for the company.
  • On April 9, 2012, the company was upgraded from Sell to Neutral at MKM Partners.
  • On March 27, 2012, Compass Point reiterated Sell rating for the company.
  • On March 26, 2012, FBR Capital reiterated Mkt Perform rating for the company.
  • On February 27, 2012, the company was downgraded from Neutral to Sell at Compass Point.
  • On February 13, 2012, RBC Capital Mkts reiterated Outperform rating for the company.
  • On January 18, 2012, the company was downgraded from Neutral to Sell at UBS.

Latest Developments

  • On May 9, 2012, KB Home is pleased to announce that it has been recognized by the U.S. Environmental Protection Agency (EPA) with a company-record fourteen 2012 ENERGY STAR Leadership in Housing Awards.
  • On April 17, 2012, The Law Firm of Levi & Korsinsky, LLP announced that it is investigating KB Home, and its Board of Directors, in connection with the compensation provided to certain executive officers.
  • On April 13, 2012, KB Home announced that it has declared a quarterly cash dividend of $0.025 per share on the Company's common stock, reflecting its decision to reduce the Company's quarterly cash dividend from $0.0625 per share.
  • On March 14, 2012, The U.S. Environmental Protection Agency (EPA) has awarded KB Home a 2012 ENERGY STAR® Sustained Excellence Award in recognition of its continued leadership in protecting our environment through energy efficiency.
  • On February 2, 2012, KB Home announced that it has upsized and priced an offering of $350 million in aggregate principal amount of senior notes due 2020 ("2020 Senior Notes").
  • On February 1, 2012, KB Home announced that it has commenced a public offering for $250 million in aggregate principal amount of senior notes. KB Home intends to apply all or a portion of the net proceeds from the senior notes offering toward the payment of the purchase price of notes validly tendered and accepted for purchase in its previously announced cash tender offers for up to $250 million in aggregate principal amount of its outstanding 5¾% Senior Notes due 2014 and of its 5?% Senior Notes due 2015 and 6¼% Senior Notes due 2015 (the 2014/2015 Notes).

Competitors

KB Home operates in Residential Construction industry. The company could be compared to DR Horton Inc. (NYSE:DHI), Hovnanian Enterprises Inc. (NYSE:HOV), Lennar Corp. (NYSE:LEN), and PulteGroup, Inc. (NYSE:PHM). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)KBH Chart

KBH data by YCharts

Competitors' Latest Development

  • On April 25, 2012, D.R. Horton, Inc. announced that it intends to offer and sell, subject to market and other conditions, approximately $300 million in aggregate principal amount of senior unsecured notes in an offering registered under the Company's currently effective shelf registration statement.
  • On April 25, 2012, D.R. Horton, Inc. announced that it has priced a registered underwritten public offering of $350 million aggregate principal amount of 4.750% senior notes due 2017.
  • On April 5, 2012, Hovnanian Enterprises, Inc. announced that it priced its previously announced offering of 25,000,000 shares of its Class A Common Stock at $2.00 per share, resulting in net proceeds of approximately $47 million.
  • On April 3, 2012, Hovnanian Enterprises, Inc. announced the commencement of a registered underwritten public offering of Class A Common Stock. The offering is anticipated to consist of the issuance of 25,000,000 shares of the Company's Class A Common Stock.
  • On December 29, 2011, PulteGroup, Inc. announced that it has completed the sale of land approved for approximately 1,500 residences in Broomfield, Colorado to Wheelock Street Capital LLC, a private real estate investment firm.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: KB Home Reports On June 29 Before The Open