Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, homebuilder KB Home (NYSE: KBH) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at KB Home's business and see what CAPS investors are saying about the stock right now.

KB Home facts

Headquarters (Founded)

Los Angeles (1957)

Market Cap

$932.2 million

Industry

Homebuilding

Trailing-12-Month Revenue

$1.8 billion

Management

CEO Jeffrey Mezger (since November 2006)
CFO Jeff Kaminski (since June 2010)

Return on Equity (Average, Past 3 Years)

(51.8%)

Compound Annual Revenue Growth (Over Past 3 Years)

(39.7%)

Cash / Debt

$985.8 million / $1.8 billion

1-Year Return

(16.8%)

Competitors

D.R. Horton (NYSE: DHI)
Lennar (NYSE: LEN)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 58% of the 1,189 members who have rated KB Home believe the stock will underperform the S&P 500 going forward. These bears include TMFJMo and NKVD1938.

About two months ago, TMFJMo tapped KB Home as a rather untimely opportunity: "Too many foreclosures in the pipeline. New homes still cost more. That they are slashing prices just goes to the big red thumb."

General market malaise and the looming end to tax-credit-driven home price gains have sent housing stocks like D.R. Horton, Lennar, and PulteGroup down more than 20% over the last three months. KB Home, however, is off 35% in the same time frame, and if our community is any gauge, that extra bit of punishment really is justified. According to CAPS member NKVD1938, for example, KB Home's lack of geographic diversity (over 50% of KB Home's sales come from just four states) and relatively high debt levels make the stock an easy underperform call:

1) more debt relative to assets than the median viewer of the Maury Povich Show (although in fairness these pigs are closer to 50% on that front -- as opposed to horror shows like [Hovnanian] who are around the 100% mark)

2) Operations heavily concentrated in California, Arizona, Nevada, Colorado, Texas, Florida. Now from this list my current home state of Texas is an anomaly (due to some restrictive lending laws that largely curtailed the subprime foolishness.) But the rest? ...

3) Big part of product line involves offering mortgage, title, and insurance services to "first-time" buyers. And who might these folks be? ...

4) My beloved technical factors: ridiculous bubble formation as the Obama tax silliness was getting ready to expire.

What do you think about KB Home, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!