KBH
KB Home
Is KBH Halal?
Homebuilder — building and selling homes is permissible, but a mortgage-finance joint venture and leverage raise riba concerns.
What You Should Know
KB Home builds and sells residential homes and operates mortgage, insurance and title services for homebuyers. Its May 31, 2026 Form 10-Q reports assets of $6,775.462 million, notes payable of $1,968.714 million, cash of $199.819 million and receivables of $389.728 million. Debt/assets is 29.05%, liquidity/assets is 2.95% and receivables-plus-cash/assets is 8.69%; known asset ratios pass. Interest income is $1.164 million (0.10% of quarterly revenue), while the financial-services segment remains a qualitative mortgage and insurance concern.
⚠️ Concerns
- •Known debt/assets is 29.05%, below examined 33% limits
- •Mortgage origination and conventional insurance services require qualitative review
- •Interest income of $1.164 million is disclosed; no scholar-approved purification percentage is asserted
- •Highly cyclical with housing demand and mortgage rates
- •The verdict remains judgment-dependent for investors who exclude embedded mortgage finance
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-05-31; calculated 2026-07-15.
1,968.714 / 6,775.462
199.819 / 6,775.462
589.547 / 6,775.462
1.164 / 1,112.435
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 29.05%, liquidity/assets is 2.95%, receivables-plus-cash/assets is 8.69% and interest income/revenue is 0.10%; known ratios pass but business disclosure remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets, liquidity/assets and receivables-plus-cash/assets are below the examined MSCI limits; business disclosure remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 29.05% and liquidity/assets is 2.95%, below the examined Malaysia limits; this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A properly licensed and reproducible historical market-cap series is not stored; known asset-based ratios pass but business disclosure remains incomplete.
Business-activity disclosure
KB Home builds and sells residential homes and operates financial-services activities providing mortgage, insurance and title services to homebuyers. Homebuilding is generally permissible, while mortgage and conventional-insurance activities require qualitative review.
Limitation: The filing does not provide a universal prohibited-revenue numerator separating homebuilding, mortgage, insurance and title-service activity.
Purification
Interest income of $1.164 million (0.10% of quarterly total revenue) is disclosed, but financial-services activity is not allocated into a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are converted from USD thousands in KB Home's May 31, 2026 Form 10-Q to USD millions.
- Debt is homebuilding notes payable of $1,968.714 million; financial-services liabilities are excluded as immaterial in the primary balance sheet.
- Cash is $199.819 million; no separate interest-bearing securities balance is identified.
- Homebuilding receivables are $389.728 million.
- Interest income is $1.164 million (0.10% of quarterly total revenue). KB Home's financial-services segment also provides mortgage, insurance and title services, so activity classification remains qualitative.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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