KB Home (NYSE:KBH) persists its position slightly strong in context of buying side, while shares price rose 3.70% during latest trading session.
Profitability Ratio Analysis; To measure firm’s performance and profitability, we focus on ordinary profitability ratio, KBH has gross profit margin of 15.40% for trailing twelve months and operating margin is calculated as 4.50%, these are a better detectors to find consistency or positive/negative trends in a firm’s earnings. Following in trace line, returns on investment amplify the findings, the KB Home (NYSE:KBH)’s ROI concludes as 2.70%; it gives idea for personal financial decisions, to compare a firm’s profitability or to compare the efficiency of different investments. The returns on assets of firm also on noticeable level, it has ROA of 2.10%, which signifies how profitable a firm is relative to its total assets.
Experts’ Critical Views
Lets us look over what analysts have to say about performance of the KBH. Starting with EPS for the final quarter of this year. EPS is usually the indicator of profitability for the company. According to WSJ analysis, the Q4 2016 current estimates trends were for $0.13 as compared to the next year Q1 current trend of $0.31. While on annual basis the current EPS estimates trend for FY 2017 came in for $1.81 as compared to three months ago $1.80.
The stock prices target chart showed high target of 22 kept by analysts at WSJ while the average price target was for 16.93 as compared to current price of 19.61. Somehow, the stock managed to gain BUY ratings by 2 analysts in current tenure as 2 analysts having overweight ratings, 12 recommend as HOLD, 1 stands at Underweight and 4 gave it as a SELL security for current period. Overall, the consensus ratings were for Hold by the pool of analysts.
KB Home (NYSE:KBH) holds price to book ratio of 0.97 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 17.45, which is authentic method to judge but not universal for all situation.
Taking look on ratio analysis, KBH has forward price to earnings ratio of 10.79, compare to its price to earnings ratio of 17.45. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 0.89. The co is presenting price to cash flow as 2.79 and while calculating price to free cash flow it concluded at 9.42, the low single digit may indicate stock is undervalued and vice versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
In addition, the KB Home (NYSE:KBH) has debt to equity ratio of 1.53, sometimes it remain same with long term debt to equity ratio. The firm has price volatility of 2.56% for a week and 2.65% for a month. Its beta stands at 1.92 times. Narrow down four to firm performance, its weekly performance was 6.34% and monthly performance was 21.73%.