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Organic Growth Boosts KB Home’s Revenue

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KB Home’s price movement

KB Home (KBH) has a market cap of $1.34 billion. KB Home’s YTD (year-to-date) price movement is mixed with ups and downs. After the 3Q15 earnings report, KB Home rose by 1.04% to close at $14.60 per share. The price movement on a weekly, monthly, and YTD basis is -3.82%, 7.20%, and -11.31%, respectively. It’s trading at -0.75% on a trailing five-day basis.

Technically, it has broken all of the major supports. Currently, it’s trading at 2.40% above the 20-day moving average, -1.07% below the 50-day moving average, and 0.12% above the 200-day moving average.

The iShares Dow Jones US Home Construction ETF (ITB) invests 2.08% of its holdings in KB Home. ITB tracks a market-cap-weighted index of companies involved in the production and sale of materials used in home construction. ITB’s YTD price movement is 5.04%.

KB Home’s competitors and their market caps are:

  • D.R. Horton (DHI) – $11.18 billion
  • PulteGroup (PHM) – $6.99 billion
  • Lennar (LEN) – $10.03 billion
  • Ryland Group (RYL) – $2.01 billion
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KB Home’s performance in 3Q15

According to the 3Q15 earnings report, the net revenue rose to $843.157 million—a rise of 35.30% compared to the net revenue of $622.969 in 2Q15. The revenue from homebuilding and financial services rose by 35.30% and 36.39% in 3Q15. The company has delivered 2,236 homes in 3Q15—a rise of 25.12% on a quarterly basis. The net income and EPS (earnings per share) rose to $23.254 million and $0.23 per share.

In 3Q15, the company announced the grand openings of Forest Grove, Ridgeline in Lakeside, Stonecrest at The Cove in San Jacinto, Miller Ranch in Converse, Mirabel Along the IH-10 Corridor, New Eastchurch in Frederick, Buttercup Villas in Cedar Park, Olive Lane in Fresno, Arbor Chase in East Orlando, Vineyard Crossing in Livermore, Orchard Park in Winter Garden, Lynbrook at The Preserve in Chino, Cimarron Creek in Magnolia, and Lakewood Pines in Houston.

On July 16, 2015, the company announced a quarterly cash dividend of $0.025 per share on the common stock.

About KB Home

KB Home is one of the largest and most recognized homebuilding companies in the US. KB Home’s unique homebuilding approach lets each buyer customize their new home from the lot location to the floor plan and design features. All KB homes are very energy efficient and meet strict ENERGY STAR guidelines. This helps to lower the utility costs for homeowners. The company demonstrates this in its proprietary KB Home Energy Performance Guide.

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