KB HomeFRA:KBH -2.39%80 Gross Margin % is 15.55% as of Feb. 2026, which is 18% below its 10-year median of 18.99. GuruFocus rates FRA:KBH with a GF Score™ of 80/100 and a GF Value™ of €49.68 (Fairly Valued). The stock has 8 warning signs investors should review. Among 90 Homebuilding & Construction companies, KB Home ranks worse than 62.22% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. KB Home's Gross Profit for the
three
months ended in Feb. 2026 was €142 Mil. KB Home's Revenue for the
three
months ended in Feb. 2026 was €911 Mil. Therefore, KB Home's Gross Margin % for the quarter that ended in Feb. 2026 was 15.55%.
The historical rank and industry rank for KB Home's Gross Margin % or its related term are showing as below:
FRA:KBH'
s Gross Margin % Range Over the Past 10 Years
Min: 15.29 Med: 18.99 Max: 24.4
Current: 16.91
During the past 13 years, the highestGross Margin % of KB Home was 24.40%. The lowest was 15.29%. And the median was 18.99%.
FRA:KBH's Gross Margin % is ranked worse than 62.22% of 90
companies
in the Homebuilding & Construction industry
Industry Median: 21.34
vs FRA:KBH: 16.91
KB Home had a gross margin of 15.55% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for KB Home was -0.90% per year.
KB Home (FRA:KBH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
KB Home had a gross margin of 15.55% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
KB Home Gross Margin % Related Terms
KB Home Gross Margin % Historical Data
* Premium members only.
The historical data trend for KB Home's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:KBH vs GRBK, MHO, SKY: Gross Margin % Comparison
For the Residential Construction subindustry, KB Home's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
KB Home Gross Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's Gross Margin % distribution charts can be found below:
* The bar in red indicates where KB Home's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
KB Home (FRA:KBH) has a Gross Margin % of 15.55% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on KB Home and its competitors. This is 18% below median its historical median of 18.99. Over the past decade, KB Home's Gross Margin % has ranged from 15.29 to 24.40. According to the industry distribution chart, KB Home ranks #56 out of 90 companies in the Homebuilding & Construction industry, placing it in the top 62.2%.
Is KB Home's Gross Margin % too high?
KB Home's current Gross Margin % of 15.55% is 18% below median its 10-year median of 18.99. Over the past 10 years, this metric has ranged from a low of 15.29 to a high of 24.40. The Homebuilding & Construction industry median Gross Margin % is 21.34. KB Home's value of 15.55% is 27.1% below this industry median. Based on the distribution chart, KB Home ranks #56 out of 90 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, KB Home has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KB Home's Gross Margin % compare to GRBK and MHO?
According to the Homebuilding & Construction industry distribution chart, KB Home ranks #56 out of 90 companies for Gross Margin %. This places KB Home in the lower half of its industry. The industry median Gross Margin % is 21.34. KB Home's value of 15.55% is 27.1% below this benchmark. Historically, KB Home's own Gross Margin % has ranged from 15.29 to 24.40 over the past decade. While the company's 10-year median is 18.99 vs. the industry median of 21.34, KB Home has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Homebuilding & Construction company?
The median Gross Margin % among Homebuilding & Construction companies is 21.34, based on 90 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KB Home's current Gross Margin % of 15.55% is 27.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on KB Home and its competitors. For the Homebuilding & Construction industry, the median Gross Margin % is 21.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KB Home's current Gross Margin % is 15.55%, which is 18% below median its own 10-year median of 18.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KB Home stock overvalued right now?
Based on GuruFocus' analysis, KB Home (FRA:KBH) is currently considered Fairly Valued. The stock's GF Value™ is €49.68, compared to a current price of €52.26 — trading 5.2% above its estimated fair value. The current Gross Margin % is 15.55%, which is 18% below median its 10-year median of 18.99 and 27.1% below the Homebuilding & Construction industry median of 21.34. KB Home's overall GF Score™ is 80/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For KB Home (FRA:KBH), the current Gross Margin % is 15.55% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is KB Home (FRA:KBH) Overvalued in 2026?
Based on GuruFocus' analysis, KB Home stock appears to be overvalued.
The current stock price of €52.26 is trading 5.2% above its estimated GF Value™ of €49.68.
GuruFocus considers KB Home to be Fairly Valued.
Key valuation signals for FRA:KBH:
Gross Margin %: 15.55% (18% below median its 10-year median of 18.99)
GF Value™: €49.68 vs. price of €52.26 (5.2% above fair value)
Industry Position: 27.1% below the Homebuilding & Construction median (#56 of 90)
No single metric tells the full story. See the FRA:KBH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KB Home is an American construction company that focuses on residential construction in the United States. The company builds single-family homes and communities across different geographical segments which include the West Coast which also derives the majority of the revenue, Southwest, Central, and Southeast. The company operates in several markets and focuses on first-time and move-up homebuyers. It also invests in land acquisition and development to support future building activities and is also engaged in financial services operations which includes providing mortgage banking services through its joint venture with a third party.
80GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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