KBH – Market expectations are for Uniform ROA to fade, but management is confident about the business model, lot supply, and absorption

• KB Home (KBH:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with an 11.3x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about the business model, owned lot supply, and their absorption rate
  
  

• Specifically, management is confident their business model allows them to quickly shift product offerings and that they can sustain sales growth. Additionally, they are confident in their supply of owned lots and absorption rate