KB HomeFRA:KBH +13.94%77 Net Margin % is 3.10% as of Feb. 2026, which is 56% below its 10-year median of 6.98. GuruFocus rates FRA:KBH with a GF Score™ of 77/100 and a GF Value™ of €52.16 (Fairly Valued). The stock has 6 warning signs investors should review. Among 91 Homebuilding & Construction companies, KB Home ranks better than 58.24% on this metric.
Net margin is calculated as Net Income divided by its Revenue. KB Home's Net Income for the
three
months ended in Feb. 2026 was €28 Mil. KB Home's Revenue for the
three
months ended in Feb. 2026 was €911 Mil. Therefore, KB Home's net margin for the quarter that ended in Feb. 2026 was 3.10%.
The historical rank and industry rank for KB Home's Net Margin % or its related term are showing as below:
FRA:KBH'
s Net Margin % Range Over the Past 10 Years
Min: 2.94 Med: 6.98 Max: 11.83
Current: 5.96
FRA:KBH's Net Margin % is ranked better than 58.24% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 4.73
vs FRA:KBH: 5.96
KB Home (FRA:KBH) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
KB Home Net Margin % Related Terms
KB Home Net Margin % Historical Data
* Premium members only.
The historical data trend for KB Home's Net 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: Net Margin % Comparison
For the Residential Construction subindustry, KB Home's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's Net Margin % distribution charts can be found below:
* The bar in red indicates where KB Home's Net 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.
KB Home (FRA:KBH) has a Net Margin % of 3.10% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on KB Home and its competitors. This is 56% below median its historical median of 6.98. Over the past decade, KB Home's Net Margin % has ranged from 2.94 to 11.83. According to the industry distribution chart, KB Home ranks #38 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 41.8%.
Is KB Home's Net Margin % too high?
KB Home's current Net Margin % of 3.10% is 56% below median its 10-year median of 6.98. Over the past 10 years, this metric has ranged from a low of 2.94 to a high of 11.83. The Homebuilding & Construction industry median Net Margin % is 4.73. KB Home's value of 3.10% is 34.5% below this industry median. Based on the distribution chart, KB Home ranks #38 out of 91 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, KB Home has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KB Home's Net Margin % compare to GRBK and MHO?
According to the Homebuilding & Construction industry distribution chart, KB Home ranks #38 out of 91 companies for Net Margin %. This puts KB Home in the upper half of its industry. The industry median Net Margin % is 4.73. KB Home's value of 3.10% is 34.5% below this benchmark. Historically, KB Home's own Net Margin % has ranged from 2.94 to 11.83 over the past decade. While the company's 10-year median is 6.98 vs. the industry median of 4.73, 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 Net Margin % for a Homebuilding & Construction company?
The median Net Margin % among Homebuilding & Construction companies is 4.73, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KB Home's current Net Margin % of 3.10% is 34.5% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on KB Home and its competitors. For the Homebuilding & Construction industry, the median Net Margin % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KB Home's current Net Margin % is 3.10%, which is 56% below median its own 10-year median of 6.98. 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 €52.16, compared to a current price of €53.54 — trading 2.6% above its estimated fair value. The current Net Margin % is 3.10%, which is 56% below median its 10-year median of 6.98 and 34.5% below the Homebuilding & Construction industry median of 4.73. KB Home's overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For KB Home (FRA:KBH), the current Net Margin % is 3.10% 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 €53.54 is trading 2.6% above its estimated GF Value™ of €52.16.
GuruFocus considers KB Home to be Fairly Valued.
Key valuation signals for FRA:KBH:
Net Margin %: 3.10% (56% below median its 10-year median of 6.98)
GF Value™: €52.16 vs. price of €53.54 (2.6% above fair value)
Industry Position: 34.5% below the Homebuilding & Construction median (#38 of 91)
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.
77GF Score
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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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