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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 (BEKE) AI Stock Analysis

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BEKE

KE Holdings Inc. Sponsored ADR Class A

(NYSE:BEKE)

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Neutral 59 (OpenAI - 4o)
Rating:59Neutral
Price Target:
$19.50
▲(9.80% Upside)
KE Holdings Inc. has a stable financial foundation with growth in diverse areas, but faces profitability and cash flow challenges. Technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. The earnings call provides a balanced view with both growth and challenges.
Positive Factors
Revenue Growth
The consistent revenue growth, driven by diverse services, highlights KE Holdings' expanding market presence and robust business model.
Diverse Growth Drivers
Diversification into non-housing services reduces dependency on a single market segment, enhancing resilience against market fluctuations.
Share Repurchase Program
The expanded buyback program reflects strong financial management and commitment to enhancing shareholder value over the long term.
Negative Factors
Decline in Net Income
The significant drop in net income indicates challenges in profitability, which could impact the company's ability to reinvest in growth.
Gross Margin Decline
A declining gross margin suggests increased cost pressures, potentially affecting long-term profitability and competitive positioning.
Cash Flow Challenges
The sharp decline in free cash flow growth raises concerns about the company's ability to fund operations and strategic initiatives.

KE Holdings Inc. Sponsored ADR Class A (BEKE) vs. SPDR S&P 500 ETF (SPY)

KE Holdings Inc. Sponsored ADR Class A Business Overview & Revenue Model

Company DescriptionKE 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 Services, New Home Transaction Services, Home Renovation and Furnishing, Home rental services, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers rental property management and operation services; and contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyKE Holdings generates revenue through multiple key streams. The primary source comes from real estate brokerage services, where the company earns commission fees from property transactions facilitated through its platform. Additionally, the company provides advertising and marketing services for property developers and owners, generating revenue from listing fees and promotional services on its platform. Partnerships with real estate agencies and developers further bolster its revenue model, allowing KE Holdings to expand its service offerings and market reach. The growing demand for digital real estate solutions and the increasing volume of property transactions in China significantly contribute to the company's earnings.

KE Holdings Inc. Sponsored ADR Class A Earnings Call Summary

Earnings Call Date:Aug 26, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth in diverse areas such as home rental services and an expanded agent network, alongside a solid commitment to shareholder returns through an expanded buyback program. However, there were notable challenges, including a decline in net income and gross margins, attributed to the slowdown in the real estate market and increased costs. While the company has shown resilience and strategic expansion, the financial pressures and market challenges present a balanced view of the current business climate.
Q2-2025 Updates
Positive Updates
Revenue and GTV Growth
Total revenues reached RMB26 billion, marking an 11.3% increase year-over-year. Total GTV was RMB878.7 billion, representing a year-over-year increase of 4.7%.
Home Rental Services Expansion
Revenue from home rental services reached a record high of RMB5.7 billion in Q2, up 78% year-over-year. The number of rental units under management increased to over 590,000 from over 310,000 in the same period of 2024.
Diverse Growth Drivers
Revenue from non-housing transaction services accounted for 41% of total revenues in Q2, highlighting diversified growth drivers.
Agent and Store Network Expansion
The number of active stores increased by 30% in the first half of the year, with active non-Lianjia stores soaring by 36.8% year-over-year. The number of active agents increased by 19.5%.
Home Renovation and Furnishing Services Growth
Revenue from home renovation and furnishing business increased by 13% year-over-year, with a contribution margin reaching 32.1%.
Shareholder Returns and Buyback Program
The board approved an expansion of the existing share repurchase program to US$5 billion, extending to August 31, 2028.
Negative Updates
Decline in GAAP and Non-GAAP Net Income
GAAP net income was RMB1.31 billion, falling 31.2% year-over-year. Non-GAAP net income reached RMB1.82 billion, down 32.4% year-over-year.
Gross Margin Decline
Gross margin declined by 6 percentage points year-over-year to 21.9%, primarily due to the decrease in contribution margin from existing home transaction services.
Existing Home Transaction Services Revenue Drop
Revenue from existing home transactions reached RMB6.7 billion in Q2, down 8.4% year-over-year.
Real Estate Market Slowdown
The real estate market recorded a year-over-year decline in Q2 due to international trade friction and the fading impact of earlier policy measures.
Company Guidance
During KE Holdings Inc.'s second quarter 2025 earnings call, the company provided extensive guidance on its financial and operational performance. The total GTV for Q2 was RMB878.7 billion, marking a 4.7% year-over-year increase, while total revenues were RMB26 billion, up 11.3% from the previous year. However, the gross margin fell by 6 percentage points to 21.9%. The GAAP net income was RMB1.31 billion, a 31.2% decrease year-over-year, and the non-GAAP net income was RMB1.82 billion, down 32.4%. The company highlighted significant growth in its home renovation and furnishing business, with revenue reaching RMB4.6 billion, up 13% year-over-year, and a contribution margin of 32.1%. Additionally, home rental services achieved a record revenue of RMB5.7 billion, increasing by 78% year-over-year. The company emphasized its commitment to an asset-light model and announced an expansion of its share repurchase program to US$5 billion, extended to August 31, 2028.

KE Holdings Inc. Sponsored ADR Class A Financial Statement Overview

Summary
KE Holdings presents a solid financial performance with strong revenue growth 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. However, attention should be paid to potential risks associated with revenue volatility and leverage.
Income Statement
65
Positive
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.
Balance Sheet
70
Positive
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.
Cash Flow
55
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue103.05B93.46B77.78B60.67B80.75B70.48B
Gross Profit22.83B22.94B21.72B13.78B15.82B16.86B
EBITDA4.44B4.93B9.31B817.87M762.60M4.25B
Net Income3.90B4.06B5.88B-1.39B-524.77M2.78B
Balance Sheet
Total Assets123.69B133.15B120.33B109.35B100.32B104.30B
Cash, Cash Equivalents and Short-Term Investments44.98B52.76B53.89B54.90B49.85B56.66B
Total Debt21.97B22.65B17.99B12.19B7.51B7.99B
Total Liabilities54.85B61.70B48.13B40.29B33.26B37.50B
Stockholders Equity68.71B71.32B72.10B68.92B66.97B66.77B
Cash Flow
Free Cash Flow2.03B8.41B10.28B7.67B2.17B8.47B
Operating Cash Flow2.51B9.45B11.16B8.46B3.60B9.36B
Investing Cash Flow5.42B-9.38B-3.98B-8.47B-24.88B-14.98B
Financing Cash Flow-6.34B-5.79B-6.96B-1.15B-1.07B25.41B

KE Holdings Inc. Sponsored ADR Class A Technical Analysis

Technical Analysis Sentiment
Negative
Last Price17.76
Price Trends
50DMA
18.80
Negative
100DMA
18.64
Negative
200DMA
19.13
Negative
Market Momentum
MACD
-0.26
Positive
RSI
39.58
Neutral
STOCH
25.50
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 17.76 is below the 20-day moving average (MA) of 18.31, below the 50-day MA of 18.80, and below the 200-day MA of 19.13, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 39.58 is Neutral, neither overbought nor oversold. The STOCH value of 25.50 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$14.38B26.088.40%13.47%47.52%
$3.83B18.7811.62%4.63%887.64%
$1.64B-12.78%1.92%3.55%-36.05%
$2.17B12.193.79%4.94%3.15%1.96%
$20.91B38.895.60%2.03%32.76%-2.01%
$5.63B-41.33%14.07%27.59%
$1.11M
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BEKE
KE Holdings Inc. Sponsored ADR Class A
17.76
-3.78
-17.55%
JLL
Jones Lang Lasalle
303.45
32.49
11.99%
EXPI
eXp World Holdings
10.44
-2.62
-20.06%
CWK
Cushman & Wakefield
16.53
2.98
21.99%
XHG
XChange TECINC
0.96
-59.08
-98.40%
OPEN
Opendoor Technologies
7.34
5.59
319.43%

KE Holdings Inc. Sponsored ADR Class A Corporate Events

KE Holdings Inc. Reports Share Repurchase Activities in October 2025
Oct 20, 2025

KE Holdings Inc. has recently disclosed several changes in its issued shares and treasury shares, as reported in their Next Day Disclosure Returns dated from October 13 to October 17, 2025. The company has been actively repurchasing shares throughout September and early October 2025, with significant repurchase activities noted on various dates. These actions reflect the company’s strategic financial management decisions aimed at optimizing its capital structure, which could potentially impact its market positioning and shareholder value.

KE Holdings Inc. Releases October 2025 Disclosure Returns
Oct 14, 2025

KE Holdings Inc. has released a series of Next Day Disclosure Returns dated between October 6 and October 10, 2025. These disclosures are part of the company’s regulatory compliance under the Securities Exchange Act of 1934, indicating ongoing transparency in its financial and operational activities. The releases could impact stakeholders by providing insights into the company’s recent activities and adjustments, potentially affecting its market positioning and investor confidence.

KE Holdings Reports Share Movements and Capital Adjustments for September 2025
Oct 9, 2025

In its latest monthly return for September 2025, KE Holdings Inc. reported no change in its authorized share capital, maintaining a total of USD 500,000. However, the company experienced a decrease in its issued shares, with Class A shares reducing by 27,051,775 and Class B shares by 1,120,452. This reduction was partly due to the repurchase and cancellation of shares, as well as the conversion of Class B shares to Class A shares. These movements reflect the company’s ongoing efforts to manage its share capital and optimize its financial structure, which may impact its market positioning and shareholder value.

KE Holdings Inc. Executes Strategic Share Repurchases in September 2025
Oct 6, 2025

In a recent disclosure, KE Holdings Inc. reported a series of share repurchases throughout September 2025, with the most recent activity occurring on September 26, 2025. These repurchases, conducted on the New York Stock Exchange, amounted to 693,855 shares at an aggregate price of USD 4,497,106. The repurchase activities are part of a broader mandate allowing the company to buy back up to 360,216,007 shares, reflecting a strategic move to manage share capital and potentially enhance shareholder value. This activity may impact the company’s stock liquidity and market perception, indicating a focus on strengthening its financial positioning.

KE Holdings Inc. Grants RSUs to Employees to Boost Long-term Growth
Oct 2, 2025

On October 1, 2025, KE Holdings Inc. announced the grant of 320,694 restricted share units (RSUs) to 15 employees under its 2020 Share Incentive Plan. This move aims to align the interests of the employees with the company’s long-term growth and profitability, and to recognize their past contributions. The RSUs will vest over periods ranging from 42 to 48 months, with no performance targets attached. This initiative is expected to motivate employees and secure their commitment, thereby potentially enhancing the company’s future development and shareholder value.

KE Holdings Inc. Reports Extensive Share Buybacks in September 2025
Sep 29, 2025

KE Holdings Inc. has been actively involved in share repurchase activities throughout July to September 2025, as detailed in their recent disclosures dated September 22 to September 26, 2025. These buybacks, which involve significant volumes of shares, indicate the company’s strategic move to consolidate its equity structure, potentially enhancing shareholder value and reflecting confidence in its financial health. The repurchases are part of a broader trend in the industry where companies are leveraging buybacks to optimize their capital structure, which could have implications for market positioning and investor relations.

KE Holdings Inc. Releases September 2025 Disclosure Returns
Sep 22, 2025

KE Holdings Inc. released a series of Next Day Disclosure Returns dated from September 15 to September 19, 2025, indicating ongoing compliance with regulatory requirements. These disclosures are part of the company’s routine reporting obligations under the Securities Exchange Act of 1934, reflecting its commitment to transparency and accountability in its financial operations.

KE Holdings Inc. Releases 2025 Interim Report
Sep 17, 2025

KE Holdings Inc. has released its interim report for the first half of the fiscal year ending December 31, 2025. This report, required by the Hong Kong Stock Exchange, provides insights into the company’s financial performance and strategic positioning. The release of the interim report is an important event for stakeholders, as it offers a detailed view of the company’s operations and market strategy, potentially impacting investor perceptions and market dynamics.

KE Holdings Inc. Reports Share Repurchases in July and August 2025
Sep 15, 2025

KE Holdings Inc. has reported several changes in its issued shares and treasury shares, as disclosed in their recent filings with the Securities and Exchange Commission. The company has been actively repurchasing shares throughout July and August 2025, with multiple transactions occurring on various dates. These repurchases have not yet been canceled, indicating a strategic move to manage its share capital. This series of transactions reflects KE Holdings Inc.’s efforts to optimize its capital structure and potentially enhance shareholder value.

KE Holdings Inc. Files Disclosure Returns for Early September 2025
Sep 8, 2025

On September 8, 2025, KE Holdings Inc. filed a report with the SEC, detailing several disclosure returns dated from September 1 to September 5, 2025. These filings are part of the company’s regulatory compliance under the Securities Exchange Act of 1934, reflecting its ongoing commitment to transparency and adherence to financial reporting standards. The disclosures may impact stakeholders by providing insights into the company’s financial and operational status during this period.

KE Holdings Inc. Reports Stability in Share Capital and Ongoing Share Repurchases
Sep 5, 2025

KE Holdings Inc. reported no changes in its authorized or issued share capital for the month ending August 31, 2025. The company maintained its authorized share capital at USD 500,000, with no increase or decrease in issued shares. Additionally, the company executed share repurchases throughout July and August 2025, totaling 28,172,226 Class A ordinary shares, which have not yet been canceled. These movements reflect the company’s ongoing capital management strategies and may impact its market positioning and shareholder value.

KE Holdings Grants RSUs to Independent Directors
Sep 3, 2025

On September 2, 2025, KE Holdings Inc. announced the grant of 37,500 Restricted Share Units (RSUs) under its 2020 Share Incentive Plan to two independent non-executive directors, Ms. Xiaohong Chen and Mr. Hansong Zhu. This move aligns with the company’s remuneration practices and governance codes, aiming to maintain the objectivity and independence of its directors. The RSUs will fully vest on the first anniversary of the grant date and are not tied to performance targets. This initiative reflects KE Holdings’ commitment to rewarding its leadership while adhering to corporate governance standards.

KE Holdings Inc. Announces Share Repurchase Activities in August 2025
Sep 2, 2025

On September 2, 2025, KE Holdings Inc. reported a series of share repurchases that took place from July 1 to August 22, 2025. These repurchases, which were not yet canceled by the closing balance date, reflect the company’s strategic financial maneuvers to manage its equity structure. The transactions involved repurchasing shares at varying prices, indicating a focus on optimizing shareholder value and potentially impacting the company’s market positioning by reducing the number of outstanding shares.

KE Holdings Reports Q2 2025 Financials and Expands Share Buyback
Aug 27, 2025

On August 26, 2025, KE Holdings Inc. announced its unaudited financial results for the second quarter of 2025, reporting a gross transaction value of RMB878.7 billion, a 4.7% increase year-over-year. Despite a 31.2% decrease in net income, the company saw an 11.3% rise in net revenues to RMB26.0 billion, driven by growth in new home transactions and non-housing services. The company also expanded its share repurchase program, increasing authorization to US$5 billion, reflecting its commitment to shareholder returns.

KE Holdings Inc. Executes Strategic Share Repurchase in August 2025
Aug 25, 2025

KE Holdings Inc. announced a series of share repurchases that took place between July 1 and August 15, 2025. These repurchases, conducted on the New York Stock Exchange, involved a total of 646,476 shares at varying prices, reflecting the company’s strategic move to manage its capital structure. This action may indicate KE Holdings’ confidence in its market position and future prospects, potentially impacting shareholder value positively.

KE Holdings Inc. Conducts Strategic Share Repurchases in August 2025
Aug 18, 2025

KE Holdings Inc. announced a series of share repurchases throughout July and early August 2025, with the most recent repurchase occurring on August 8, 2025. These repurchases are part of a broader strategy to manage the company’s capital structure and potentially enhance shareholder value. The repurchases, conducted on the New York Stock Exchange, involved a total of 846,738 shares at prices ranging from USD 5.87 to USD 6, with an aggregate expenditure of approximately USD 4.997 million. This move may impact the company’s stock liquidity and market perception, reflecting a commitment to returning value to shareholders.

KE Holdings Inc. Schedules Board Meeting to Review Mid-Year Financials
Aug 15, 2025

KE Holdings Inc. announced that its board of directors will meet on August 26, 2025, to review and approve the unaudited financial results for the three and six months ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial health and performance during the first half of the year, potentially impacting investor confidence and market positioning. An earnings conference call will follow the meeting, allowing stakeholders to engage with the company’s management and gain further clarity on the financial results.

KE Holdings Inc. Executes Strategic Share Repurchase in August 2025
Aug 11, 2025

KE Holdings Inc. announced a series of share repurchases throughout July 2025, culminating in a significant buyback of 659,943 shares on August 1, 2025, at an aggregate price of approximately USD 3.99 million. These actions reflect the company’s strategic initiative to manage its capital structure and potentially enhance shareholder value. The repurchase activities, conducted on the New York Stock Exchange, indicate KE Holdings’ commitment to optimizing its financial operations and maintaining a robust market position.

KE Holdings Inc. Reports July 2025 Securities Movements
Aug 7, 2025

On August 7, 2025, KE Holdings Inc. reported its monthly return on equity issuer movements in securities for July 2025. The report detailed a decrease in the number of issued Class A and Class B ordinary shares, with significant repurchases and cancellations of Class A shares on the New York Stock Exchange. Additionally, there was a conversion of Class B shares to Class A shares. These movements reflect the company’s ongoing efforts to manage its share capital and optimize shareholder value.

KE Holdings Inc. Executes Share Repurchase Program in July 2025
Aug 4, 2025

KE Holdings Inc. announced a series of share repurchases throughout July 2025, with the most recent transaction occurring on July 25, 2025. The company repurchased a total of 462,606 shares on the New York Stock Exchange at prices ranging from USD 6.44 to USD 6.55 per share. This strategic move is part of a broader repurchase mandate authorized on June 27, 2025, allowing the company to repurchase up to 360,216,007 shares. These actions reflect KE Holdings’ commitment to optimizing its capital structure and potentially enhancing shareholder value.

KE Holdings Inc. Announces Share Repurchases in July 2025
Jul 28, 2025

KE Holdings Inc. has announced multiple repurchases of its shares throughout July 2025, with specific dates and amounts disclosed. These actions reflect the company’s strategic financial management and could impact its market positioning by potentially increasing shareholder value and demonstrating confidence in its future prospects.

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.Date of analysis: Oct 22, 2025