Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.25, read 2026-11-05
Ethical passes the values gate
Price52.06 USD
Fair value40.89
Ethical score70.0/100
Value readOvervaluedas of 5 Nov 2026
Our investment reviews on this name
2026-11-04Read Markup48.93+6.4% to today ✓Distribution gives way to Markup after a 6% rise in 7 days
2026-10-28Read Distribution46.35+12.3% to today Markdown gives way to Distribution after a 17% slide in 6 weeks
2026-09-19Read Markdown56.08-7.2% to today ✓Distribution gives way to Markdown with results news in the headlines
2026-09-03Read Distribution56.08-7.2% to today ✓Markup gives way to Distribution first Distribution read since July
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
KB Home holds its Markup at $52.06. Consolidating, no directional conviction, held for 70 days.
As held on the ledger · 2026-11-05
Phase
Markup
Quantitative state
Consolidating, no directional conviction, held for 70 days
Price at the screen
$52.06
Valuation
13.06 trailing · 12.92 forward price to earnings
Values screen
PASS· score 70.0
Beta
1.34
The Workings
Five Screens, Shown in Full
Full pass across all five screens. This security clears the Titan Ethical Standard: its business and its balance sheet both stay inside the lines.
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
25.64%
Below 33%
Interest-bearing debt is just 25.6% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
0.23%
Below 33%
Cash held in interest-bearing accounts and securities is 0.2% of assets, under the one-third limit.
Pass
Receivables
3.53%
Below 49%
Money owed to the company is 3.5% of assets, under the 49% limit.
Pass
Revenue purity
0.12%
Below 5%
Only 0.1% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Clears, in Plain English
KB Home clears all five screens. Its business is in a permissible area, its interest-bearing debt is about 26%, inside the ~33% line, and almost none of its income is interest, so it passes.
Read as at 2026-11-05. It updates when the underlying figures move, and past reads are kept below.
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Get an email when KBH's ethical verdict changes
Today KBH passes the screen. If new figures move it to a fail, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads Overvalued vs our fair value, as of 5 Nov 2026: it trades above our $40.89 fair value estimate.
Fair value range in USD, drawn from the 2026-11-05 screen. The gold marker is the market price at the same screen. The price runs 27.3% above the base estimate.
Where our models see it going: fair-value estimate $40.89, with a range of $35.10 to $47.02, dated to the 2026-11-05 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Homebuilder Slowdown Leaves Little Room to Move
Picture a contractor pouring concrete while mortgage rates push first-time buyers back to the sidelines. KB Home sits in exactly that spot, with revenue already down 27 percent and a forward earnings multiple of just 12.6 times offering little comfort once the cycle turns. The shares trade almost exactly at the analyst median target of 56 dollars, and our own fair-value estimate sits only 4 percent higher, which is no margin at all.
We pass. Profit margins sit at 5 percent and return on equity at 7 percent, modest numbers for a business whose fortunes rise and fall with housing demand. Ethical screens clear, yet the combination of shrinking top-line growth and thin returns leaves nothing compelling on the table.
The real danger is the classic cyclical trap: earnings that look cheap at peak or mid-cycle multiples can compress fast when volumes fall further. With no moat visible and consensus stuck at hold, the setup offers exposure without reward. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The things to watch: it already moves more than the market on an average day.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
KBH trades on the NYSE. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-11-04Markup · changed$48.93+5.6%Entry 15
The framework has shifted from distribution to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 5.6% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are down 3%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (13 analysts) rates it hold, with a mean price target of $55. Insiders have been net sellers over the past quarter. Since the last review it dropped out of the Titan Ethical 500.
The framework has shifted from markdown to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved up 6.2% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is momentum reading neutral. Over the past year the shares are down 3%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (13 analysts) rates it hold, with a mean price target of $55. Insiders have been net sellers over the past quarter.
2026-10-21Markdown$43.65+4.9%Entry 13
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 4.9% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is momentum reading oversold. Over the past year the shares are down 3%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (13 analysts) rates it hold, with a mean price target of $55. Insiders have been net sellers over the past quarter.
2026-10-14Markdown$41.63-14.3%Entry 12
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 14.3% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 3%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (13 analysts) rates it hold, with a mean price target of $55. Insiders have been net sellers over the past quarter.
2026-10-02Markdown$48.59+0.0%Entry 11
Our analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 3%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (13 analysts) rates it hold, with a mean price target of $55. Insiders have been net sellers over the past quarter.
2026-09-24Markdown$48.59-13.4%Entry 10
Our analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 13.4% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 3%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (13 analysts) rates it hold, with a mean price target of $55. Insiders have been net sellers over the past quarter. Since the last review it its composite score rose. It reported earnings in this window, a natural checkpoint for the thesis.
2026-09-21Markdown$56.08+0.0%Entry 9
Our analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 3%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (13 analysts) rates it hold, with a mean price target of $55. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-09-19Markdown · changed$56.08+0.0%Entry 8
The framework has shifted from distribution to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 3%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (13 analysts) rates it hold, with a mean price target of $55. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-09-18Distribution$56.08+0.0%Entry 7
Our analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 3%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (13 analysts) rates it hold, with a mean price target of $55. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-09-17Distribution$56.08+0.0%Entry 6
Our analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 3%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (13 analysts) rates it hold, with a mean price target of $55. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
