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Here's How Much a $1000 Investment in KB Home Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 the provision of title services.
KB Home ended the third quarter of fiscal 2023 with $612.1 million of cash and cash equivalents, up from $328.5 million at fiscal 2022-end. It has a total liquidity of $1.7 billion, including $1.08 billion of available capacity under the unsecured revolving credit facility, with no outstanding cash borrowings. The company ended the quarter with a debt to capital of 30.6%, down from 33.4% in fiscal 2022. It also repurchased approximately 1.5 million shares of its outstanding common stock for $82.5 million.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in KB Home a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2013 would be worth $2,943.37, or a gain of 194.34%, as of November 3, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 145.10% and the price of gold went up 45.03% over the same time frame.
Looking ahead, analysts are expecting more upside for KBH.
Shares of KB Homes have outperformed its industry in the past six months. The company’s growth is driven by the Returns-Focused Growth Plan, which includes the execution of its core business strategy, improving asset efficiency and monetizing significant deferred tax assets. It remains well positioned to achieve its full-year revenue expectation supported by an ending backlog value of $3.4 billion, a higher community count, a built-to-order model and the expectation of current housing market conditions continuing for the remainder of 2023. Also, KBH's robust land acquisition strategies assist it in boosting gross margin and returns. Earnings estimates for fiscal 2023 have moved north in the past 30 days, reflecting analysts’ optimism. Yet, ongoing hikes in interest rates and a high-cost environment are concerns.
Over the past four weeks, shares have rallied 10.79%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in KB Home Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 the provision of title services.
KB Home ended the third quarter of fiscal 2023 with $612.1 million of cash and cash equivalents, up from $328.5 million at fiscal 2022-end. It has a total liquidity of $1.7 billion, including $1.08 billion of available capacity under the unsecured revolving credit facility, with no outstanding cash borrowings. The company ended the quarter with a debt to capital of 30.6%, down from 33.4% in fiscal 2022. It also repurchased approximately 1.5 million shares of its outstanding common stock for $82.5 million.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in KB Home a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2013 would be worth $2,943.37, or a gain of 194.34%, as of November 3, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 145.10% and the price of gold went up 45.03% over the same time frame.
Looking ahead, analysts are expecting more upside for KBH.
Shares of KB Homes have outperformed its industry in the past six months. The company’s growth is driven by the Returns-Focused Growth Plan, which includes the execution of its core business strategy, improving asset efficiency and monetizing significant deferred tax assets. It remains well positioned to achieve its full-year revenue expectation supported by an ending backlog value of $3.4 billion, a higher community count, a built-to-order model and the expectation of current housing market conditions continuing for the remainder of 2023. Also, KBH's robust land acquisition strategies assist it in boosting gross margin and returns. Earnings estimates for fiscal 2023 have moved north in the past 30 days, reflecting analysts’ optimism. Yet, ongoing hikes in interest rates and a high-cost environment are concerns.
Over the past four weeks, shares have rallied 10.79%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.