• KB Home (NYSE:KBH) is expected to report a significant decline in EPS year-over-year.
• Revenue projections indicate a 12.6% decrease from the previous year, yet analyst expectations have remained stable.
• Financial metrics suggest KB Home is undervalued, with strong liquidity and a conservative debt profile.

KB Home (NYSE: KBH) is a prominent homebuilding company based in Los Angeles. It specializes in designing and building homes for first-time and move-up buyers. As a key player in the homebuilding industry, KBH competes with other major companies like Lennar Corporation and D.R. Horton. The company is set to release its quarterly earnings on June 23, 2025.

Wall Street estimates KBH's earnings per share (EPS) to be $1.45, while analysts predict a slightly higher EPS of $1.47. This marks a significant decline from the $2.15 EPS reported in the same period last year. The anticipated decrease of 32.6% year-over-year highlights the challenges KBH faces in maintaining its profitability.

Revenue projections for KBH stand at approximately $1.51 billion, consistent with Wall Street's expectations. This figure represents a 12.6% decrease from the $1.71 billion reported in the same quarter last year. Despite the decline, the consensus revenue estimate has remained unchanged over the past 30 days, indicating stability in analysts' expectations.

KBH's financial metrics reveal a relatively low valuation, with a price-to-earnings (P/E) ratio of 5.91 and a price-to-sales ratio of 0.54. These figures suggest that the market values KBH's earnings and sales modestly. The company's enterprise value to sales ratio of 0.77 indicates that its enterprise value is slightly higher than its sales.

The company's financial health is further supported by a strong earnings yield of 16.91% and a conservative debt-to-equity ratio of 0.44. Additionally, KBH boasts a robust current ratio of 7.13, highlighting its strong liquidity position. These metrics suggest that KBH is well-positioned to navigate the challenges in the homebuilding industry.