Is KB HOME (KBH) Halal?
Shariah Screening — 5 Standards
Based on financial data from November 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 45.8% / 30% | 6.2% / 30% | 9.5% / 30% | 0.12% / 5% | ✗ NOT HALAL |
| DJIM | 45.8% / 33% | 6.2% / 33% | 9.5% / 33% | 0.12% / 5% | ✗ NOT HALAL |
| MSCI | 25.6% / 33% | 3.4% / 33% | 5.3% / 33% | 0.12% / 5% | ✓ HALAL |
| S&P | 45.8% / 33% | 6.2% / 33% | 9.5% / 33% | 0.12% / 5% | ✗ NOT HALAL |
| FTSE | 25.6% / 33% | 3.4% / 33% | 5.3% / 50% | 0.12% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 18.6% | |
| Operating Margin | 3.8% | |
| Net Margin | 6.0% | |
| Return on Equity (ROE) | 8.9% | |
| Return on Assets (ROA) | 4.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $336M |
| Free Cash Flow | $287M |
| Total Debt | $1.7B |
| Debt-to-Equity | 49.1 |
| Current Ratio | 6.6 |
| Total Assets | $6.7B |
Price & Trading
| Last Close | $51.91 |
| 50-Day MA | $59.06 |
| 200-Day MA | $59.87 |
| Avg Volume | 1.1M |
| Beta | 1.4 |
|
52-Week Range
$48.90
| |
About KB HOME (KBH)
KB Home is one of the largest and most trusted homebuilders in the United States. We operate in 49 markets, have built over 700,000 quality homes in our nearly 70-year history, and are honored to be the No 1 customer-ranked national homebuilder based on third-party buyer surveys. What sets KB Home apart is building strong, personal relationships with every customer and creating an exceptional homebuying experience that offers our homebuyers the ability to personalize their home based on what they value at a price they can afford. As the industry leader in sustainability, KB Home has achieved one of the highest residential energy-efficiency ratings and delivered more ENERGY STAR certified homes than any other builder, helping to lower the total cost of homeownership.
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Frequently Asked Questions
Is KB HOME (KBH) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), KB HOME is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is KB HOME's debt ratio?
KB HOME's debt ratio is 45.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 25.6%.
What are KB HOME's key financial metrics?
KB HOME has a market capitalization of $3.2B, trailing P/E ratio of 9.8, and revenue of $6.2B. The company maintains a gross margin of 18.6% and a net margin of 6.0%. Return on equity stands at 8.9%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.