Operating Margin % is calculated as Operating Income divided by its Revenue. KB Home's Operating Income for the
three
months ended in Feb. 2024 was $162 Mil. KB Home's Revenue for the
three
months ended in Feb. 2024 was $1,468 Mil. Therefore, KB Home's Operating Margin % for the quarter that ended in Feb. 2024 was 11.05%.
Good Sign:
KB Home operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for KB Home's Operating Margin % or its related term are showing as below:
KBH'
s Operating Margin % Range Over the Past 10 Years
Min: 4.46 Med: 7.66 Max: 15.28
Current: 11.45
KBH's Operating Margin % is ranked better than 61.9% of 105
companies
in the Homebuilding & Construction industry
Industry Median: 8.75
vs KBH: 11.45
KB Home's 5-Year Average Operating Margin % Growth Rate was 13.80% per year.
KB Home's Operating Income for the
three
months ended in Feb. 2024 was $162 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2024 was $744 Mil.
KB Home Operating Margin % Historical Data
The historical data trend for KB Home's Operating 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.
Competitive Comparison of KB Home's Operating Margin %
For the Residential Construction subindustry, KB Home's Operating Margin %, along with its competitors' market caps and Operating 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's Operating Margin % Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's Operating Margin % distribution charts can be found below:
* The bar in red indicates where KB Home's Operating Margin % falls into.
KB Home Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
KB Home's Operating Margin % for the fiscal year that ended in Nov. 2023 is calculated as
* 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 (NYSE:KBH) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
KB Home Operating Margin % Related Terms
Thank you for viewing the detailed overview of KB Home's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
KB Home is an American construction company that focuses on residential construction. The company builds single-family homes and communities across Arizona, California, Colorado, Florida, Nevada, Texas, North Carolina, Idaho and the Washington, D.C., area. KB Home operates in several markets and focuses on first-time and move-up homebuyers. The company follows a built-to-order model that offers personalized homes at attainable prices based on the market location. The company 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.
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