KE Holdings Inc. Sponsored ADR Class A (BEKE)
NYSE:BEKE
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KE Holdings Inc. Sponsored ADR Class A
(NYSE:BEKE)
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Rating:60Neutral
Price Target:
$19.50
▲(20.07% Upside)
Action:Reiterated
Date:05/20/26
The score is driven by mixed fundamentals: a strong balance sheet and improved profitability commentary on the latest call are offset by weak cash flow conversion (including negative 2025 OCF/FCF) and declining revenue. Technicals are supportive with the stock trading above major moving averages, but valuation is a key drag due to the very high P/E and only modest yield.
Positive Factors
Sturdy balance sheet
Moderate leverage and a large equity base (debt/equity ~0.28) provide financial flexibility through China's property cycle. Positive ROE (~4.4% in 2025) and a solid balance sheet support continued investments, buybacks and absorb near-term shocks without forcing asset sales.
Negative Factors
Weak cash conversion
Negative OCF and FCF in 2025 indicate earnings are not translating into cash, raising concerns about quality of profits. Persistent weak cash conversion limits reinvestment capacity and increases dependence on reserves or financing, risking sustainability of margin and buyback programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Sturdy balance sheet
Moderate leverage and a large equity base (debt/equity ~0.28) provide financial flexibility through China's property cycle. Positive ROE (~4.4% in 2025) and a solid balance sheet support continued investments, buybacks and absorb near-term shocks without forcing asset sales.
Read all positive factors
KE Holdings Inc. Sponsored ADR Class A (BEKE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.96B
Dividend Yield2.26%
Average Volume (3M)4.44M
Price to Earnings (P/E)22.5
Beta (1Y)0.50
Revenue Growth-8.90%
EPS Growth-21.42%
CountryUS
Employees131,881
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)2.66
Shares Outstanding1,118,865,000
10 Day Avg. Volume4,937,440
30 Day Avg. Volume4,439,201
Financial Highlights & Ratios
PEG Ratio-1.62
Price to Book (P/B)1.84
Price to Sales (P/S)1.29
P/FCF Ratio-127.66
Enterprise Value/Market Cap6.09
Enterprise Value/Revenue1.22
Enterprise Value/Gross Profit5.72
Enterprise Value/Ebitda16.07
Forecast
1Y Price Target
$23.31Price Target Upside43.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)6.43
Revenue Forecast (FY)$89.80B
KE Holdings Inc. Sponsored ADR Class A Business Overview & Revenue Model
Company Description
KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through five segments: Existing Home Transaction Servic...
How the Company Makes Money
BEKE primarily makes money by charging commission-based and service-fee revenues tied to housing transactions facilitated through its platform and brokerage network. (1) Existing home transactions: When a secondary (existing) home is bought or sol...
KE Holdings Inc. Sponsored ADR Class A Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call presents a constructive operational and profitability story: despite meaningful year-over-year revenue and GTV declines (driven in part by a high prior-year base and market volatility), the company achieved notable margin expansion, improved contribution margins across core businesses, material expense reductions, strong buyback activity and a healthy cash buffer. Management emphasizes a multi-year strategic transformation centered on AI, productization and putting managers back on the front line to drive decision-support capabilities. Key risks include continued scale pressure in new home and renovation revenue, a Q1 operating cash outflow (timing-related), and broader market uncertainty. On balance the improvements in profitability, efficiency and capital return materially outweigh the near-term revenue contractions.Positive Updates
Strong Profitability and Margin Expansion
Q1 non-GAAP operating profit was RMB 1.67 billion, up 45.1% year-over-year and 416.2% quarter-over-quarter; non-GAAP operating margin reached 8.8% (7-quarter high, +3.9 ppts YoY). GAAP net income was RMB 1.26 billion (+46.7% YoY) and non-GAAP net income was RMB 1.61 billion (+15.7% YoY). GAAP operating profit improved to RMB 1.27 billion from RMB 591 million a year earlier.
Negative Updates
Group Revenue and GTV Declines
Group GTV in Q1 was RMB 711.2 billion, down 15.6% YoY. Group revenue was RMB 18.9 billion, down 19.0% YoY—declines attributed to a high base from last year and market adjustments.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Profitability and Margin Expansion
Q1 non-GAAP operating profit was RMB 1.67 billion, up 45.1% year-over-year and 416.2% quarter-over-quarter; non-GAAP operating margin reached 8.8% (7-quarter high, +3.9 ppts YoY). GAAP net income was RMB 1.26 billion (+46.7% YoY) and non-GAAP net income was RMB 1.61 billion (+15.7% YoY). GAAP operating profit improved to RMB 1.27 billion from RMB 591 million a year earlier.
Read all positive updates
Company Guidance
Management guided that the company will prioritize maximizing long‑term value through disciplined ROI, continued investment in AI and pilots, and prudent resource allocation while expecting year‑on‑year margin improvement for the full year; they pointed to Q1 financials as evidence (non‑GAAP operating profit RMB 1.67bn, non‑GAAP operating margin 8.8% — a 7‑quarter high; gross margin 24.1%, GAAP net income RMB 1.26bn, non‑GAAP net income RMB 1.61bn) and cited operational metrics supporting sustainability (Q1 GTV RMB 711.2bn, revenue RMB 18.9bn; existing‑home GTV RMB 534.4bn and revenue RMB 6.1bn with a 41.3% contribution margin; new‑home GTV RMB 145.9bn, revenue RMB 5.1bn; home renovation revenue RMB 2.3bn with 36.2% contribution margin; rental revenue RMB 500m, >740,000 managed units, rental contribution margin 14.8% and net‑method units >40%); they also flagged continued cost discipline (Q1 total GAAP Opex RMB 3.3bn; store costs RMB 571m) and strong liquidity after repurchasing ~USD195–200m in Q1 (cumulative repurchases ~USD2.7bn, ~13.5% pre‑program) with cash balances excluding customer deposits ~RMB65.6bn, while noting short‑term timing effects on operating cash flow (net operating cash outflow ~RMB1.5bn) and operational KPIs to track (per‑capita transaction +26% YoY, per‑capita commission +8.5%/Jan–Apr +20%, AR turnover 64 days).KE Holdings Inc. Sponsored ADR Class A Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
78
Positive
Cash Flow
40
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 94.58B | 93.46B | 77.78B | 60.67B | 80.75B |
| Gross Profit | 20.21B | 22.94B | 21.72B | 13.78B | 15.82B |
| EBITDA | 5.76B | 7.90B | 9.31B | 1.81B | 2.52B |
| Net Income | 2.99B | 4.06B | 5.88B | -1.39B | -524.13M |
Balance Sheet | |||||
| Total Assets | 116.74B | 133.15B | 120.33B | 109.35B | 100.32B |
| Cash, Cash Equivalents and Short-Term Investments | 55.56B | 52.76B | 53.89B | 54.90B | 49.85B |
| Total Debt | 18.53B | 22.65B | 17.99B | 12.19B | 7.51B |
| Total Liabilities | 49.91B | 61.70B | 48.13B | 40.29B | 33.26B |
| Stockholders Equity | 66.48B | 71.32B | 72.10B | 68.92B | 66.97B |
Cash Flow | |||||
| Free Cash Flow | -957.09M | 8.41B | 10.28B | 7.67B | 2.17B |
| Operating Cash Flow | -365.92M | 9.45B | 11.16B | 8.46B | 3.60B |
| Investing Cash Flow | 5.73B | -9.38B | -3.98B | -8.47B | -24.88B |
| Financing Cash Flow | -9.53B | -5.79B | -6.96B | -1.15B | -1.07B |
KE Holdings Inc. Sponsored ADR Class A Technical Analysis
Negative
16.24
Price Trends
16.54
Negative
16.86
Negative
17.22
Negative
Market Momentum
0.29
Positive
42.57
Neutral
15.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEKE, the sentiment is Negative. The current price of 16.24 is below the 20-day moving average (MA) of 17.79, below the 50-day MA of 16.54, and below the 200-day MA of 17.22, indicating a bearish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 15.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BEKE.
KE Holdings Inc. Sponsored ADR Class A Risk Analysis
KE Holdings Inc. Sponsored ADR Class A disclosed 95 risk factors in its most recent earnings report. KE Holdings Inc. Sponsored ADR Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KE Holdings Inc. Sponsored ADR Class A Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $13.53B | 22.41 | 12.35% | ― | 11.23% | 68.38% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $18.96B | 22.45 | 4.95% | 2.26% | -8.90% | -21.42% | |
58 Neutral | $3.02B | -56.63 | 3.79% | ― | 10.40% | -54.85% | |
| ― | $51.03M | -0.02 | 70.52% | ― | ― | ― | |
55 Neutral | $4.37B | -6.49 | -163.25% | ― | -23.16% | -208.85% |
* Real Estate Sector Average
BEKE
KE Holdings Inc. Sponsored ADR Class A
16.40
-1.76
-9.67%
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291.69
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12.89
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33.85%
XHG
XChange TECINC
0.99
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-37.34%
OPEN
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4.53
3.85
566.18%
KE Holdings Inc. Sponsored ADR Class A Corporate Events
KE Holdings Steps Up Share Buybacks as It Retires Stock Ahead of May 2026
May 18, 2026
KE Holdings Inc. reported in a May 2026 filing that it has been actively repurchasing its Class A WVR ordinary shares across April and early May 2026 on the New York Stock Exchange, at prices generally between about US$4.9 and US$6.3 per share. As...
KE Holdings Details April–May 2026 Share Repurchases Under Ongoing Buyback Mandate
May 11, 2026
KE Holdings Inc. reported a series of share repurchase activities in April and early May 2026, as disclosed in multiple Next Day Disclosure Returns filed with the Hong Kong Stock Exchange and furnished to the U.S. SEC on May 11, 2026. Across tradi...
KE Holdings Trims Share Count and Confirms Public Float in April 2026 Update
May 8, 2026
KE Holdings reported its monthly share capital movements for the period ended April 30, 2026, showing no change in authorized capital but a reduction in issued Class A and Class B shares. The company confirmed it remained in compliance with Hong K...
KE Holdings Details April 2026 Share Buybacks Under Ongoing Repurchase Mandate
May 4, 2026
KE Holdings Inc. has reported a series of share repurchases carried out between April 1 and April 24, 2026, under its existing buyback mandate, without changing its total issued share count as of April 24. The company’s Class A WVR ordinary ...
KE Holdings Continues April 2026 Share Buybacks Under Existing Mandate
Apr 27, 2026
KE Holdings Inc. reported a series of share repurchases carried out between April 1 and April 17, 2026, under its existing buyback mandate, without changing its total issued share count as of April 17, 2026. The company repurchased multiple tranch...
KE Holdings Details April 2026 Share Repurchases Under Ongoing Buyback Mandate
Apr 20, 2026
KE Holdings Inc., a leading Chinese real estate services platform listed in Hong Kong and on the New York Stock Exchange, detailed recent changes to its share capital structure in regulatory filings for the month of April 2026. The disclosures con...
KE Holdings Details Early April 2026 Share Buybacks, Cancellations and Class B-to-A Conversions
Apr 13, 2026
KE Holdings disclosed multiple changes to its share capital structure in early April 2026, including repurchases and cancellations of Class A ordinary shares and conversions of Class B shares into Class A shares. After share buybacks conducted acr...
KE Holdings Files March 2026 Hong Kong Share Capital Return, Confirms Stable Float and Ongoing Buybacks
Apr 10, 2026
KE Holdings Inc. reported its monthly return on movements in securities for the month ended 31 March 2026, showing no change in the number of issued Class A and Class B WVR ordinary shares during the period and confirming that it continued to meet...
KE Holdings Details Heavy Share Buyback Activity in Early 2026
Apr 8, 2026
KE Holdings Inc. reported in an April 8, 2026 SEC filing that its issued share capital on the Hong Kong Stock Exchange remained unchanged at 3,391,029,167 Class A ordinary shares as of March 27, 2026, alongside 138,588,377 Class B ordinary shares....
KE Holdings Steps Up U.S.-Listed Share Buybacks Through March 2026
Mar 30, 2026
KE Holdings Inc. disclosed in a March 30, 2026 filing that it has been actively repurchasing its Class A WVR ordinary shares on the New York Stock Exchange. The company reported no change in its total issued share count as of March 20, 2026, with ...
KE Holdings Accelerates Share Buybacks With Over 100 Million Shares Repurchased by Mid-March 2026
Mar 23, 2026
KE Holdings Inc. filed a Form 6-K on March 23, 2026, detailing a series of share repurchases carried out between January 2 and March 13, 2026, under its existing buyback mandate. The Hong Kong “Next Day Disclosure Return” dated March 1...
KE Holdings Discloses February Share Issuance and Ongoing Buybacks in March 2026 Filing
Mar 9, 2026
KE Holdings Inc. reported several changes in its share capital structure in a March 2026 filing, detailing activity through early March. On February 27, 2026 the company issued 45 million Class A ordinary shares, registered in the name of its depo...
KE Holdings Expands Class A Float via ADS-Linked Issuance in February 2026
Mar 6, 2026
KE Holdings Inc., the Beijing-headquartered foreign private issuer behind Hong Kong-listed WVR Class A shares (stock code 02423), reported no change in its authorised share capital for February 2026, maintaining total authorised capital at USD 500...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.