KB HomeMEX:KBH 80 ROC (Joel Greenblatt) % is 2.73% as of Feb. 2026, which is 77% below its 10-year median of 11.80. GuruFocus rates MEX:KBH with a GF Score™ of 80/100 and a GF Value™ of MXN973.50. The stock has 6 warning signs investors should review. Among 95 Homebuilding & Construction companies, KB Home ranks worse than 68.42% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. KB Home's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 2.73%.
The historical rank and industry rank for KB Home's ROC (Joel Greenblatt) % or its related term are showing as below:
MEX:KBH'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 5.36 Med: 11.8 Max: 23.73
Current: 6.38
During the past 13 years, KB Home's highest ROC (Joel Greenblatt) % was 23.73%. The lowest was 5.36%. And the median was 11.80%.
MEX:KBH's ROC (Joel Greenblatt) % is ranked worse than 68.42% of 95
companies
in the Homebuilding & Construction industry
Industry Median: 11.3
vs MEX:KBH: 6.38
KB Home's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -0.20% per year.
KB Home (MEX:KBH) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for KB Home's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Residential Construction subindustry, KB Home's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where KB Home's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Feb. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 2.73% mean?
KB Home (MEX:KBH) has a ROC (Joel Greenblatt) % of 2.73% as of Feb. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on KB Home and its competitors. This is 77% below median its historical median of 11.80. Over the past decade, KB Home's ROC (Joel Greenblatt) % has ranged from 5.36 to 23.73. According to the industry distribution chart, KB Home ranks #65 out of 95 companies in the Homebuilding & Construction industry, placing it in the top 68.4%.
Is KB Home's ROC (Joel Greenblatt) % too high?
KB Home's current ROC (Joel Greenblatt) % of 2.73% is 77% below median its 10-year median of 11.80. Over the past 10 years, this metric has ranged from a low of 5.36 to a high of 23.73. The Homebuilding & Construction industry median ROC (Joel Greenblatt) % is 11.30. KB Home's value of 2.73% is 75.8% below this industry median. Based on the distribution chart, KB Home ranks #65 out of 95 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 ROC (Joel Greenblatt) % compare to GRBK and MHO?
According to the Homebuilding & Construction industry distribution chart, KB Home ranks #65 out of 95 companies for ROC (Joel Greenblatt) %. This places KB Home in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.30. KB Home's value of 2.73% is 75.8% below this benchmark. Historically, KB Home's own ROC (Joel Greenblatt) % has ranged from 5.36 to 23.73 over the past decade. While the company's 10-year median is 11.80 vs. the industry median of 11.30, 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 ROC (Joel Greenblatt) % for a Homebuilding & Construction company?
The median ROC (Joel Greenblatt) % among Homebuilding & Construction companies is 11.30, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KB Home's current ROC (Joel Greenblatt) % of 2.73% is 75.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on KB Home and its competitors. For the Homebuilding & Construction industry, the median ROC (Joel Greenblatt) % is 11.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KB Home's current ROC (Joel Greenblatt) % is 2.73%, which is 77% below median its own 10-year median of 11.80. 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 ROC (Joel Greenblatt) % of 2.73%. The stock's GF Value™ is MXN973.50, compared to a current price of MXN1,010.00 — trading 3.7% above its estimated fair value. The current ROC (Joel Greenblatt) % is 2.73%, which is 77% below median its 10-year median of 11.80 and 75.8% below the Homebuilding & Construction industry median of 11.30. KB Home's overall GF Score™ is 80/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For KB Home (MEX:KBH), the current ROC (Joel Greenblatt) % is 2.73% 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 3.7% above its estimated GF Value™ of MXN973.50.
Key valuation signals for MEX:KBH:
ROC (Joel Greenblatt) %: 2.73% (77% below median its 10-year median of 11.80)
GF Value™: MXN973.50 vs. price of MXN1,010.00 (3.7% above fair value)
Industry Position: 75.8% below the Homebuilding & Construction median (#65 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.
80GF Score
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