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KE Holdings Inc. Sponsored ADR Class A (BEKE)
NYSE:BEKE
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KE Holdings Inc. Sponsored ADR Class A
(NYSE:BEKE)
Rating:70Neutral
Price Target:
$19.50
▲(9.61% Upside)
Positive Factors
Market Share Expansion
KE Holdings is expected to gain market share in both existing and new homes despite the challenging macro environment.
Revenue Growth
1Q25 revenue rose 42% YoY to RMB 23.3bn, mainly driven by new home and emerging business growth.
Shareholder Returns
The company remains proactive in rewarding shareholders, with comprehensive shareholder returns of US$ 1.12bn or above in 2025.
Negative Factors
Earnings Forecast
The company's 2Q25/FY25 guidance implies non-GAAP NP significantly below market expectations.
Operating Costs
The company's higher fixed costs in the existing home segment and lower non-GAAP operating and net profit margins compared to the previous year are concerning.
Profitability Concerns
There is caution regarding the company's profitability due to rising headcount with higher compensation and CSR commitments, which may pressure earnings in the near term.
KE Holdings Inc. Sponsored ADR Class A (BEKE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.21B
Dividend Yield2.02%
Average Volume (3M)5.53M
Price to Earnings (P/E)35.6
Beta (1Y)0.57
Revenue Growth32.76%
EPS Growth-2.01%
CountryUS
Employees135,072
SectorReal Estate
Sector Strength52
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.22
Shares Outstanding1,143,377,400
10 Day Avg. Volume6,206,241
30 Day Avg. Volume5,530,029
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.71
Enterprise Value/Revenue0.16
Enterprise Value/Gross Profit0.69
Enterprise Value/Ebitda3.44
Forecast
1Y Price Target
$23.05Price Target Upside29.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
KE Holdings Inc. Sponsored ADR Class A Business Overview & Revenue Model
Company DescriptionKE Holdings Inc. Sponsored ADR Class A (BEKE) is a leading integrated online and offline platform for housing transactions and services in China. The company operates under the brand name 'Beike' and provides a comprehensive range of housing-related services, including existing home sales, new home sales, and home rentals. KE Holdings leverages its technology and data-driven platform to connect various stakeholders in the real estate industry, such as property owners, buyers, agents, and financial institutions, aiming to enhance efficiency and transparency in the housing market.
How the Company Makes MoneyKE Holdings Inc. generates revenue primarily through commission-based income from real estate transactions facilitated on its platform. The company earns commissions from both existing home sales and new home sales, acting as an intermediary between buyers and sellers. Additionally, KE Holdings derives revenue from value-added services, which include financial services such as mortgage facilitation and other home-related services. The company's robust online platform and extensive network of real estate agents and service providers play a crucial role in driving its transaction volume and, consequently, its revenue. Significant partnerships with developers and financial institutions also contribute to its earnings by enhancing its service offerings and market reach.
KE Holdings Inc. Sponsored ADR Class A Earnings Call Summary
Earnings Call Date:Aug 26, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 19, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth and strong performance in new home transactions and AI integration, leading to improved efficiency. However, challenges in gross margin decline, new home market conditions, and cash flow management were noted. The positive aspects slightly outweigh the concerns.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Net revenue reached RMB23.3 billion, up 42.4% year-over-year, driven by strong performance in both existing and new home transaction services.
New Home Transaction Success
GTV for new home transactions increased by 53% year-over-year, outperforming the market, with revenue rising by 64.2% year-over-year.
Expansion of Agent and Store Network
The number of active stores surpassed 55,200, a record high, with active agents growing by 23% year-over-year.
AI Integration and Efficiency Gains
AI-powered tools have improved efficiency and conversion rates, with over 200,000 agents using AI tools, leading to a 30% increase in conversion rates from leads to transactions.
Home Renovation Business Growth
Home renovation revenue reached RMB2.9 billion, up 22.3% year-over-year, with a record-high contribution margin of 32.6%.
Negative Updates
Decline in Gross Margin
Gross margin declined by 4.5 percentage points year-over-year to 28.7%, primarily due to increased support for service providers.
Challenges in New Home Market
New home GTV growth was slower than expected, with a nationwide decline of 7% in GTV for top 100 developers in Q1.
Cash Flow Concerns
Net operating cash outflow of RMB4 billion was recorded in Q1, indicating cash flow management challenges.
Company Guidance
In the first quarter of 2025, KE Holdings Inc. reported significant growth across several metrics. The Group's Total Transaction Value (GTV) surged by 34% year-over-year, with revenues increasing by 42.4% to RMB 23.3 billion. The number of active stores reached over 55,200, marking a year-over-year increase of 12,600 stores, while the number of active agents rose by 23%, adding over 90,000 agents compared to the previous year. The platform's efficiency also improved, with GTV per store per agent increasing by 8% and 14%, respectively. In their home renovation and furnishing business, the company saw a 22.3% revenue increase, with the average monthly order intake per project manager rising by 156% year-over-year. Additionally, KE Holdings Inc. continued to innovate with AI deployment, enhancing both customer and agent experience, resulting in a lead-to-transaction conversion rate three times higher than for those not using its AI tools. The home rental services under management surpassed 500,000 units, showcasing a robust trajectory in their business operations.KE Holdings Inc. Sponsored ADR Class A Financial Statement Overview
Summary
KE Holdings presents a solid financial performance with strong growth in revenue and profitability. The company exhibits efficient operational performance and maintains a healthy balance sheet with manageable leverage. Cash flow metrics are particularly strong, indicating robust liquidity and financial flexibility. Potential risks include revenue volatility and leverage concerns.Income Statement
KE Holdings has demonstrated a robust revenue growth trajectory, with a notable increase in TTM revenue. The gross profit and net profit margins are healthy, reflecting efficient cost management. EBIT and EBITDA margins have improved over time, indicating strong operational efficiency. However, historical volatility in net income suggests potential risk factors that could affect future profitability.82
Very Positive
Balance Sheet
The company's balance sheet shows a strong equity base with a favorable debt-to-equity ratio, indicating a solid financial structure. Return on equity is improving, reflecting enhanced profitability. However, the equity ratio has slightly declined, which could signal increased leverage or asset utilization.78
Positive
Cash Flow
KE Holdings has shown consistent growth in free cash flow, supported by strong operating cash flow generation. The operating cash flow to net income ratio indicates robust cash conversion efficiency. The company maintains positive free cash flow, suggesting strong liquidity and the ability to fund operations and investments without relying heavily on external financing.85
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 93.46B | 77.78B | 60.67B | 80.75B | 70.48B |
| Gross Profit | 22.94B | 21.72B | 13.78B | 15.82B | 16.86B |
| EBITDA | 4.90B | 9.31B | 817.87M | 762.60M | 4.25B |
| Net Income | 4.06B | 5.88B | -1.40B | -524.77M | 2.78B |
Balance Sheet | |||||
| Total Assets | 133.15B | 120.33B | 109.35B | 100.32B | 104.30B |
| Cash, Cash Equivalents and Short-Term Investments | 52.76B | 53.89B | 54.90B | 49.85B | 56.66B |
| Total Debt | 22.65B | 17.99B | 12.19B | 7.51B | 7.99B |
| Total Liabilities | 61.70B | 48.13B | 40.29B | 33.26B | 37.50B |
| Stockholders Equity | 71.32B | 72.10B | 68.92B | 66.97B | 66.77B |
Cash Flow | |||||
| Free Cash Flow | 8.41B | 10.28B | 7.67B | 2.17B | 8.47B |
| Operating Cash Flow | 9.45B | 11.16B | 8.46B | 3.60B | 9.36B |
| Investing Cash Flow | -9.38B | -3.98B | -8.47B | -24.88B | -14.98B |
| Financing Cash Flow | -5.79B | -6.96B | -1.15B | -1.07B | 25.41B |
KE Holdings Inc. Sponsored ADR Class A Technical Analysis
Negative
17.79
Price Trends
18.41
Negative
18.86
Negative
19.11
Negative
Market Momentum
-0.05
Negative
41.83
Neutral
36.15
Neutral
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 17.79 is below the 20-day moving average (MA) of 18.10, below the 50-day MA of 18.41, and below the 200-day MA of 19.11, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 41.83 is Neutral, neither overbought nor oversold. The STOCH value of 36.15 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $14.47B | 26.26 | 8.40% | ― | 13.47% | 47.52% | |
75 Outperform | $3.67B | 18.00 | 11.62% | ― | 4.63% | 887.64% | |
74 Outperform | $48.63B | 45.78 | 13.13% | ― | 14.96% | 19.11% | |
73 Outperform | $37.86B | 350.61 | 1.30% | ― | 12.18% | -51.21% | |
70 Neutral | $23.21B | 35.59 | 5.60% | 2.02% | 32.76% | -2.01% | |
63 Neutral | $7.00B | 13.45 | -0.52% | 6.98% | 3.61% | -22.78% | |
38 Underperform | $3.47B | ― | 40.75% | ― | ― | ― |
* Real Estate Sector Average
Performance Comparison
BEKE
KE Holdings Inc. Sponsored ADR Class A
17.79
3.61
25.46%
CBRE
CBRE Group
163.04
48.42
42.24%
CSGP
CoStar Group
89.45
12.34
16.00%
JLL
Jones Lang Lasalle
305.85
53.57
21.23%
CWK
Cushman & Wakefield
15.96
3.09
24.01%
XHG
XChange TECINC
1.27
-346.73
-99.64%
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.