KB Home is using $50 million to buy back its own shares, raising worries about its growing debt.

KBH · KB Home

The AI's read

Buying shares below book value can benefit the owners who keep their shares, and KB Home has cut its share count. But planned buybacks and dividends exceed the cash left after business spending. Debt's share of company funding rose to 35.7%, from 33.2% a year earlier. KB Home reported $942 million in cash and borrowing access, including $783 million still available on its credit line. But $415 million was already borrowed, and cash itself was $159 million. That leaves less room if home sales weaken.