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If You Invested $1000 in KB Home a Decade Ago, This is How Much It'd Be Worth Now
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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.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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 its Homebuilding (accounting for 99.7% of second-quarter fiscal 2021 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 a total liquidity of $1.4 billion as of May 31, 2021, including $787.6 million of available capacity under the unsecured revolving credit facility, and $608.1 million of cash and cash equivalents. Its net debt to capital was 37.7% as of May 31, 2021, which improved 190 basis points (bps) from Nov 30, 2020.
KB Home’s quarter-end backlog totaled 10,034 homes (as of May 31, 2021), up 98% from a year ago. Further, potential housing revenues from backlog grew 126% from the prior-year period to $4.29 billion.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in KB Home ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in August 2011 would be worth $5,339.58, or a 433.96% gain, as of August 4, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 250.95% and gold's return of 5.51% over the same time frame.
Analysts are anticipating more upside for KBH.
KB Home’s shares have outperformed the industry so far this year. The trend is expected to continue, courtesy of solid second-quarter fiscal 2021 results, wherein earnings beat the Zacks Consensus Estimate by 16.3% and grew a significant 173% from a year ago. Although the top line missed the consensus mark, it grew 57.7%. With resilient U.S. housing market momentum, its net orders grew 145% year over year, marking the highest second-quarter level in 14 years. Backlog at quarter-end was up 98% from a year ago. Potential housing revenues from backlog also grew 126% to $4.29 billion, with each four regions generating a triple-digit gain. Robust backlog level, a strong lineup of community openings and returns-focused growth model will help it to generate as much as $6 billion in housing revenues and double-digit operating margin in fiscal 2021.
Over the past four weeks, shares have rallied 6.55%, and there have been 5 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in KB Home a Decade Ago, This is How Much It'd Be Worth Now
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.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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 its Homebuilding (accounting for 99.7% of second-quarter fiscal 2021 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 a total liquidity of $1.4 billion as of May 31, 2021, including $787.6 million of available capacity under the unsecured revolving credit facility, and $608.1 million of cash and cash equivalents. Its net debt to capital was 37.7% as of May 31, 2021, which improved 190 basis points (bps) from Nov 30, 2020.
KB Home’s quarter-end backlog totaled 10,034 homes (as of May 31, 2021), up 98% from a year ago. Further, potential housing revenues from backlog grew 126% from the prior-year period to $4.29 billion.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in KB Home ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in August 2011 would be worth $5,339.58, or a 433.96% gain, as of August 4, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 250.95% and gold's return of 5.51% over the same time frame.
Analysts are anticipating more upside for KBH.
KB Home’s shares have outperformed the industry so far this year. The trend is expected to continue, courtesy of solid second-quarter fiscal 2021 results, wherein earnings beat the Zacks Consensus Estimate by 16.3% and grew a significant 173% from a year ago. Although the top line missed the consensus mark, it grew 57.7%. With resilient U.S. housing market momentum, its net orders grew 145% year over year, marking the highest second-quarter level in 14 years. Backlog at quarter-end was up 98% from a year ago. Potential housing revenues from backlog also grew 126% to $4.29 billion, with each four regions generating a triple-digit gain. Robust backlog level, a strong lineup of community openings and returns-focused growth model will help it to generate as much as $6 billion in housing revenues and double-digit operating margin in fiscal 2021.
Over the past four weeks, shares have rallied 6.55%, and there have been 5 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.