Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
KB Home's 3-Year RORE % for the quarter that ended in Feb. 2026 was -9.20%.
The industry rank for KB Home's 3-Year RORE % or its related term are showing as below:
MEX:KBH's 3-Year RORE % is ranked worse than 67.03% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 0.88
vs MEX:KBH: -9.20
KB Home (MEX:KBH) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
KB Home 3-Year RORE % Related Terms
KB Home 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for KB Home's 3-Year RORE % 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: 3-Year RORE % Comparison
For the Residential Construction subindustry, KB Home's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, KB Home's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where KB Home's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Feb. 2026 and 3-year before.
KB Home (MEX:KBH) has a 3-Year RORE % of -9.20 as of Feb. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on KB Home and its competitors. According to the industry distribution chart, KB Home ranks #61 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 67%.
Is KB Home's 3-Year RORE % too high?
KB Home's current 3-Year RORE % is -9.20. Based on the distribution chart, KB Home ranks #61 out of 91 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 3-Year RORE % compare to GRBK and MHO?
According to the Homebuilding & Construction industry distribution chart, KB Home ranks #61 out of 91 companies for 3-Year RORE %. This places KB Home in the lower half of its industry. The industry median 3-Year RORE % is 0.88. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Homebuilding & Construction company?
The median 3-Year RORE % among Homebuilding & Construction companies is 0.88, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on KB Home and its competitors. For the Homebuilding & Construction industry, the median 3-Year RORE % is 0.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KB Home's current 3-Year RORE % is -9.20. 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 3-Year RORE % of -9.20. 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 3-Year RORE % is -9.20. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For KB Home (MEX:KBH), the current 3-Year RORE % is -9.20 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:
3-Year RORE %: -9.20
GF Value™: MXN973.50 vs. price of MXN1,010.00 (3.7% above fair value)
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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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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