KB Home

2017 Performance Final Grade: 74.28/100
2016 Final Grade:68.7/100
B/C+

35.24/40

Change YoY
Net debt-to-capital 37.7% -920bps
Pretax home building income
(in millions)
$276.9 91.2%
Total SG&A/Total revenue 9.8% --
Total SG&A
(in millions)
$429.8 9.3%
Return on invested capital 4.2% 180bps
Return on equity 9.9% 370bps
Total shareholder return 97.8% --
EPS $2.09 69.9%

10.95/20

Change YoY
Community count 224 -11
Share of lots optioned to total controlled 24.6% 19.5%

11.90/20

Change YoY
Home building gross margins 16.3% 120bps
Sales per month to break even
(per community)
2.38 --
Revenue per employee
(in millions)
$2.3 13.6%
Change YoY
Closings 10,909 11%
Sales velocity
(per community per month)
4.1 11.2%
Unit backlog 4,411 -0.2%


Total revenue (in millions):$4,368
HB revenue (in millions): $4,356
Debt per share: $27.08
Equity per basic share: $22.44
HB pretax margin: 6.4%
Backlog value (in millions): $1,660.1
Inventory (in millions):$3,263.4
Lot supply (in years): 4.3

KB Home (NYSE: KBH) had debt problems after the housing crash, which it is remedying, says CEO Jeffrey Mezger: “Our strong fourth quarter and full year results demonstrate the progress we have achieved in the first year of our three-year Returns-Focused Growth Plan.” Mezger claims the firm has delivered “steady improvement” in its financial and operational performance by strengthening its balance sheet, increasing its cash flow, and decreasing its debt-to-capital ratio.