KB HomeMEX:KBH 80 Return-on-Tangible-Equity is 3.34% as of Feb. 2026, which is 72% below its 10-year median of 11.88. GuruFocus rates MEX:KBH with a GF Score™ of 80/100 and a GF Value™ of MXN983.01. The stock has 7 warning signs investors should review. Among 94 Homebuilding & Construction companies, KB Home ranks worse than 56.38% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. KB Home's annualized net income for the quarter that ended in Feb. 2026 was MXN2,302 Mil. KB Home's average shareholder tangible equity for the quarter that ended in Feb. 2026 was MXN68,925 Mil. Therefore, KB Home's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 3.34%.
The historical rank and industry rank for KB Home's Return-on-Tangible-Equity or its related term are showing as below:
MEX:KBH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.19 Med: 11.88 Max: 24.45
Current: 7
During the past 13 years, KB Home's highest Return-on-Tangible-Equity was 24.45%. The lowest was 6.19%. And the median was 11.88%.
MEX:KBH's Return-on-Tangible-Equity is ranked worse than 56.38% of 94
companies
in the Homebuilding & Construction industry
Industry Median: 8.285
vs MEX:KBH: 7.00
KB Home (MEX:KBH) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
KB Home Return-on-Tangible-Equity Related Terms
KB Home Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for KB Home's Return-on-Tangible-Equity 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-Equity Comparison
For the Residential Construction subindustry, KB Home's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where KB Home's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 3.34% mean?
KB Home (MEX:KBH) has a Return-on-Tangible-Equity of 3.34% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on KB Home and its competitors. This is 72% below median its historical median of 11.88. Over the past decade, KB Home's Return-on-Tangible-Equity has ranged from 6.19 to 24.45. According to the industry distribution chart, KB Home ranks #53 out of 94 companies in the Homebuilding & Construction industry, placing it in the top 56.4%.
Is KB Home's Return-on-Tangible-Equity too high?
KB Home's current Return-on-Tangible-Equity of 3.34% is 72% below median its 10-year median of 11.88. Over the past 10 years, this metric has ranged from a low of 6.19 to a high of 24.45. The Homebuilding & Construction industry median Return-on-Tangible-Equity is 8.29. KB Home's value of 3.34% is 59.7% below this industry median. Based on the distribution chart, KB Home ranks #53 out of 94 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, KB Home has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does KB Home's Return-on-Tangible-Equity compare to GRBK and MHO?
According to the Homebuilding & Construction industry distribution chart, KB Home ranks #53 out of 94 companies for Return-on-Tangible-Equity. This places KB Home in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.29. KB Home's value of 3.34% is 59.7% below this benchmark. Historically, KB Home's own Return-on-Tangible-Equity has ranged from 6.19 to 24.45 over the past decade. While the company's 10-year median is 11.88 vs. the industry median of 8.29, 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-Equity for a Homebuilding & Construction company?
The median Return-on-Tangible-Equity among Homebuilding & Construction companies is 8.29, based on 94 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KB Home's current Return-on-Tangible-Equity of 3.34% is 59.7% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on KB Home and its competitors. For the Homebuilding & Construction industry, the median Return-on-Tangible-Equity is 8.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KB Home's current Return-on-Tangible-Equity is 3.34%, which is 72% below median its own 10-year median of 11.88. 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-Equity of 3.34%. The stock's GF Value™ is MXN983.01, compared to a current price of MXN1,010.00 — trading 2.7% above its estimated fair value. The current Return-on-Tangible-Equity is 3.34%, which is 72% below median its 10-year median of 11.88 and 59.7% below the Homebuilding & Construction industry median of 8.29. KB Home's overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For KB Home (MEX:KBH), the current Return-on-Tangible-Equity is 3.34% 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 (MEX:KBH) Overvalued in 2026?
Based on GuruFocus' analysis, KB Home stock appears to be overvalued.
The current stock price of MXN1,010.00 is trading 2.7% above its estimated GF Value™ of MXN983.01.
Key valuation signals for MEX:KBH:
Return-on-Tangible-Equity: 3.34% (72% below median its 10-year median of 11.88)
GF Value™: MXN983.01 vs. price of MXN1,010.00 (2.7% above fair value)
Industry Position: 59.7% below the Homebuilding & Construction median (#53 of 94)
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.
80GF Score
Get the complete analysis for MEX:KBH
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:KBH has been successfully added to your 
