KB HomeMEX:KBH 81 Return-on-Tangible-Asset is 1.63% as of May. 2026, which is 73% below its 10-year median of 6.01. GuruFocus rates MEX:KBH with a GF Score™ of 81/100 and a GF Value™ of MXN1,047.76. The stock has 5 warning signs investors should review. Among 95 Homebuilding & Construction companies, KB Home ranks better than 57.89% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. KB Home's annualizedNet Income for the quarter that ended in May. 2026 was MXN1,898 Mil. KB Home's average total tangible assets for the quarter that ended in May. 2026 was MXN116,490 Mil. Therefore, KB Home's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 was 1.63%.
The historical rank and industry rank for KB Home's Return-on-Tangible-Asset or its related term are showing as below:
MEX:KBH'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.07 Med: 6.01 Max: 13.08
Current: 3.98
During the past 13 years, KB Home's highest Return-on-Tangible-Asset was 13.08%. The lowest was 2.07%. And the median was 6.01%.
MEX:KBH's Return-on-Tangible-Asset is ranked better than 57.89% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 3.2
vs MEX:KBH: 3.98
KB Home (MEX:KBH) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
KB Home Return-on-Tangible-Asset Related Terms
KB Home Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for KB Home's Return-on-Tangible-Asset 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.
MEX:KBH vs GRBK, MHO, CVCO: Return-on-Tangible-Asset Comparison
For the Residential Construction subindustry, KB Home's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where KB Home's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (May. 2026) net income data.
What does a Return-on-Tangible-Asset of 1.63% mean?
KB Home (MEX:KBH) has a Return-on-Tangible-Asset of 1.63% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on KB Home and its competitors. This is 73% below median its historical median of 6.01. Over the past decade, KB Home's Return-on-Tangible-Asset has ranged from 2.07 to 13.08. According to the industry distribution chart, KB Home ranks #40 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 42.1%.
Is KB Home's Return-on-Tangible-Asset too high?
KB Home's current Return-on-Tangible-Asset of 1.63% is 73% below median its 10-year median of 6.01. Over the past 10 years, this metric has ranged from a low of 2.07 to a high of 13.08. The Homebuilding & Construction industry median Return-on-Tangible-Asset is 3.20. KB Home's value of 1.63% is 49.1% below this industry median. Based on the distribution chart, KB Home ranks #40 out of 95 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, KB Home has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does KB Home's Return-on-Tangible-Asset compare to GRBK and MHO?
According to the Homebuilding & Construction industry distribution chart, KB Home ranks #40 out of 95 companies for Return-on-Tangible-Asset. This puts KB Home in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.20. KB Home's value of 1.63% is 49.1% below this benchmark. Historically, KB Home's own Return-on-Tangible-Asset has ranged from 2.07 to 13.08 over the past decade. While the company's 10-year median is 6.01 vs. the industry median of 3.20, 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 Return-on-Tangible-Asset for a Homebuilding & Construction company?
The median Return-on-Tangible-Asset among Homebuilding & Construction companies is 3.20, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KB Home's current Return-on-Tangible-Asset of 1.63% is 49.1% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on KB Home and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Asset is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KB Home's current Return-on-Tangible-Asset is 1.63%, which is 73% below median its own 10-year median of 6.01. 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?
KB Home (MEX:KBH) has a current Return-on-Tangible-Asset of 1.63%. The stock's GF Value™ is MXN1,047.76, compared to a current price of MXN1,010.00 — trading 3.6% below its estimated fair value. The current Return-on-Tangible-Asset is 1.63%, which is 73% below median its 10-year median of 6.01 and 49.1% below the Homebuilding & Construction industry median of 3.20. KB Home's overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For KB Home (MEX:KBH), the current Return-on-Tangible-Asset is 1.63% as of May. 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 (MEX:KBH) Overvalued in 2026?
Based on GuruFocus' analysis, KB Home stock appears to be undervalued.
The current stock price of MXN1,010.00 is trading 3.6% below its estimated GF Value™ of MXN1,047.76.
Key valuation signals for MEX:KBH:
Return-on-Tangible-Asset: 1.63% (73% below median its 10-year median of 6.01)
GF Value™: MXN1,047.76 vs. price of MXN1,010.00 (3.6% below fair value)
Industry Position: 49.1% below the Homebuilding & Construction median (#40 of 95)
No single metric tells the full story. See the MEX: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.
81GF Score
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