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If You Invested $1000 in KB Home 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in KB Home (KBH - Free Report) ten years ago? It may not have been easy to hold on to KBH for all that time, but if you did, how much would your investment be worth today?
KB Home's Business In-Depth
With that in mind, let's take a look at KB Home's main business drivers.
Based in Los Angeles, CA, KB Home is a well-known homebuilder in the United States and one of the largest in the state. The company’s revenues are generated from Homebuilding (accounting for 99.7% of fiscal 2022 total revenues) and Financial Services (0.3%) operations.
The company’s Homebuilding operations include building and designing homes that cater to first time, move-up and active adult homebuyers on acquired or developed lands. KB Home also builds attached and detached single-family homes, town homes and condominiums.
There are four main reportable segments within the homebuilding reporting segment based on geographical presence: West Coast (comprising Washington and California), Southwest (comprising Arizona and Nevada), Central (constituting Colorado, and Texas) and Southeast (including Florida, North Carolina).
KB Home’s Financial Services operations offer mortgage banking, title and insurance services to homebuyers. This segment earns revenues mainly from insurance commissions and provision of title services.
KB Home had cash and cash equivalents of $557 million as of May 31, 2023, up from $328.5 million at fiscal 2022-end. The company had a total liquidity of $1.64 billion, including $1.08 billion of available capacity under the unsecured revolving credit facility.
As of fiscal second-quarter end, the debt-to-capital ratio was 30.9%, down from 33.4% a year ago.
In second-quarter fiscal 2023, it repurchased approximately 2.2 million shares of its outstanding common stock for $92.1 million.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For KB Home, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $2,762.16, or a 176.22% gain, as of July 4, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 175.82% and the price of gold increased 47.81% over the same time frame in comparison.
Analysts are forecasting more upside for KBH too.
KB Home's shares have outperformed the industry in the year-to-date period. The company reported impressive second-quarter fiscal 2023 (ended May 31, 2023) results, wherein the earnings and revenues beat the Zacks Consensus Estimate by 51.6% and 23.1%, respectively. The top line also increased year over year. It is benefiting from improved homebuilding segment’s performance. The number of homes delivered grew 6% year over year. KBH believes that it remains well-positioned to achieve its full-year revenues expectation supported by an ending backlog value of $3.46 billion, higher community count and Built-to-Order model. Earnings estimates for fiscal 2023 have been trending upward in the past 30 days. However, high mortgage rates, material cost inflation and higher wages remain potent headwinds.
The stock has jumped 12.42% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2023; the consensus estimate has moved up as well.
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If You Invested $1000 in KB Home 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in KB Home (KBH - Free Report) ten years ago? It may not have been easy to hold on to KBH for all that time, but if you did, how much would your investment be worth today?
KB Home's Business In-Depth
With that in mind, let's take a look at KB Home's main business drivers.
Based in Los Angeles, CA, KB Home is a well-known homebuilder in the United States and one of the largest in the state. The company’s revenues are generated from Homebuilding (accounting for 99.7% of fiscal 2022 total revenues) and Financial Services (0.3%) operations.
The company’s Homebuilding operations include building and designing homes that cater to first time, move-up and active adult homebuyers on acquired or developed lands. KB Home also builds attached and detached single-family homes, town homes and condominiums.
There are four main reportable segments within the homebuilding reporting segment based on geographical presence: West Coast (comprising Washington and California), Southwest (comprising Arizona and Nevada), Central (constituting Colorado, and Texas) and Southeast (including Florida, North Carolina).
KB Home’s Financial Services operations offer mortgage banking, title and insurance services to homebuyers. This segment earns revenues mainly from insurance commissions and provision of title services.
KB Home had cash and cash equivalents of $557 million as of May 31, 2023, up from $328.5 million at fiscal 2022-end. The company had a total liquidity of $1.64 billion, including $1.08 billion of available capacity under the unsecured revolving credit facility.
As of fiscal second-quarter end, the debt-to-capital ratio was 30.9%, down from 33.4% a year ago.
In second-quarter fiscal 2023, it repurchased approximately 2.2 million shares of its outstanding common stock for $92.1 million.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For KB Home, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $2,762.16, or a 176.22% gain, as of July 4, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 175.82% and the price of gold increased 47.81% over the same time frame in comparison.
Analysts are forecasting more upside for KBH too.
KB Home's shares have outperformed the industry in the year-to-date period. The company reported impressive second-quarter fiscal 2023 (ended May 31, 2023) results, wherein the earnings and revenues beat the Zacks Consensus Estimate by 51.6% and 23.1%, respectively. The top line also increased year over year. It is benefiting from improved homebuilding segment’s performance. The number of homes delivered grew 6% year over year. KBH believes that it remains well-positioned to achieve its full-year revenues expectation supported by an ending backlog value of $3.46 billion, higher community count and Built-to-Order model. Earnings estimates for fiscal 2023 have been trending upward in the past 30 days. However, high mortgage rates, material cost inflation and higher wages remain potent headwinds.
The stock has jumped 12.42% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2023; the consensus estimate has moved up as well.