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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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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
$20.50
▲(2.14% Upside)
KE Holdings' strong financial performance and strategic growth initiatives are key strengths, supported by robust cash flow and a solid balance sheet. However, technical indicators and valuation suggest caution, with potential risks from market challenges and high P/E ratio. The earnings call provides a balanced view with both growth opportunities and financial pressures.
Positive Factors
Revenue Growth
The consistent revenue growth indicates a strong market position and effective business model, supporting long-term expansion and stability.
Diversified Growth Drivers
Diversification into non-housing services reduces reliance on traditional real estate transactions, enhancing resilience against market fluctuations.
Cash Flow and Liquidity
Strong cash flow generation supports operational funding and strategic investments, ensuring financial flexibility and long-term growth potential.
Negative Factors
Decline in Net Income
A significant decline in net income could indicate underlying operational challenges, potentially impacting future profitability and investment capacity.
Gross Margin Decline
A decrease in gross margin suggests cost pressures or pricing challenges, which may affect long-term profitability and competitive positioning.
Real Estate Market Slowdown
A slowdown in the real estate market can limit transaction volumes and revenue growth, posing a risk to sustained business performance.

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. 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
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 19, 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 demonstrates strong financial performance with robust revenue growth and healthy profit margins. The balance sheet is solid with a favorable debt-to-equity ratio, and cash flow metrics indicate strong liquidity. However, attention is needed on potential risks from revenue volatility and leverage.
Income Statement
82
Very 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
78
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
85
Very Positive
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 Revenue100.41B93.46B77.78B60.67B80.75B70.48B
Gross Profit23.64B22.94B21.72B13.78B15.82B16.86B
EBITDA4.99B4.93B9.31B817.87M762.60M4.25B
Net Income4.49B4.06B5.88B-1.40B-524.77M2.78B
Balance Sheet
Total Assets130.61B133.15B120.33B109.35B100.32B104.30B
Cash, Cash Equivalents and Short-Term Investments44.65B52.76B53.89B54.90B49.85B56.66B
Total Debt22.34B22.65B17.99B12.19B7.51B7.99B
Total Liabilities61.66B61.70B48.13B40.29B33.26B37.50B
Stockholders Equity68.83B71.32B72.10B68.92B66.97B66.77B
Cash Flow
Free Cash Flow6.46B8.41B10.28B7.67B2.17B8.47B
Operating Cash Flow6.46B9.45B11.16B8.46B3.60B9.36B
Investing Cash Flow-4.38B-9.38B-3.98B-8.47B-24.88B-14.98B
Financing Cash Flow-4.09B-5.79B-6.96B-1.15B-1.07B25.41B

KE Holdings Inc. Sponsored ADR Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.07
Price Trends
50DMA
18.75
Positive
100DMA
18.84
Positive
200DMA
19.07
Positive
Market Momentum
MACD
0.49
Negative
RSI
62.97
Neutral
STOCH
69.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEKE, the sentiment is Positive. The current price of 20.07 is above the 20-day moving average (MA) of 19.05, above the 50-day MA of 18.75, and above the 200-day MA of 19.07, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 62.97 is Neutral, neither overbought nor oversold. The STOCH value of 69.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
78
Outperform
15.02B27.488.01%13.47%47.52%
73
Outperform
3.85B19.1610.81%4.63%887.64%
72
Outperform
$24.33B43.325.60%1.79%32.76%-2.01%
67
Neutral
1.75B-56.980.00%1.73%3.55%-36.05%
53
Neutral
7.51B-23.36-54.98%14.07%27.59%
38
Underperform
1.49M0.00%0.00%0.00%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BEKE
KE Holdings Inc. Sponsored ADR Class A
20.07
5.95
42.14%
JLL
Jones Lang Lasalle
319.66
57.26
21.82%
EXPI
eXp World Holdings
11.59
-2.16
-15.71%
CWK
Cushman & Wakefield
16.87
3.44
25.61%
XHG
XChange TECINC
1.47
-230.57
-99.37%
OPEN
Opendoor Technologies
9.94
7.86
377.88%

KE Holdings Inc. Sponsored ADR Class A Corporate Events

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.

KE Holdings Inc. Executes Strategic Share Repurchase in July 2025
Jul 21, 2025

In July 2025, KE Holdings Inc. reported a series of share repurchases, with significant transactions occurring from July 1 to July 11. These repurchases, conducted on the New York Stock Exchange, involved buying back a total of 7,690,089 shares, reflecting a strategic move to manage the company’s share capital. The repurchase activity, authorized by a resolution on June 27, 2025, indicates KE Holdings’ efforts to enhance shareholder value and optimize its capital structure, potentially impacting its market positioning and investor relations.

KE Holdings Inc. Announces Share Repurchase Activities in July 2025
Jul 14, 2025

KE Holdings Inc. announced a series of share repurchases throughout May and June 2025, with the most recent changes in issued shares occurring on July 7, 2025. These repurchases, which have not yet been canceled, reflect the company’s ongoing efforts to manage its capital structure and potentially enhance shareholder value. The repurchase activities, involving significant volumes of shares at varying prices, indicate a strategic move to consolidate ownership and possibly improve stock market performance.

KE Holdings Inc. Reports June 2025 Securities Movements
Jul 8, 2025

KE Holdings Inc. has released its monthly return for equity issuer on movements in securities for the month ended June 30, 2025. The report highlights that there were no changes in the authorized or registered share capital for both Class A and Class B WVR ordinary shares. Additionally, the number of issued shares remained unchanged, and the company repurchased a significant number of Class A ordinary shares represented by ADSs on the New York Stock Exchange, although these shares have not yet been canceled as of June 30, 2025. This activity reflects the company’s ongoing efforts to manage its share capital and potentially enhance shareholder value.

KE Holdings Inc. Reports Share Repurchases Amidst Stable Issued Shares
Jul 7, 2025

On July 7, 2025, KE Holdings Inc. released a report detailing changes in its share structure, including a series of share repurchases that occurred throughout May and June 2025. These actions are part of the company’s ongoing efforts to manage its equity structure, which could impact its stock market performance and shareholder value. The report highlights that as of June 30, 2025, the total number of issued shares remained unchanged at 3,458,896,856, despite the repurchases, indicating a strategic approach to managing its treasury shares.

KE Holdings Inc. Adopts Key Resolutions at Annual General Meeting
Jun 30, 2025

On June 27, 2025, KE Holdings Inc. held its annual general meeting in Beijing, where all proposed resolutions were adopted. Key outcomes included the re-election of Mr. Jeffrey Zhaohui Li as a non-executive director and Ms. Xiaohong Chen as an independent non-executive director. Additionally, the directors were granted mandates to issue and repurchase shares, which could impact the company’s strategic flexibility and shareholder value.

KE Holdings Inc. Reports Share Repurchases in June 2025
Jun 30, 2025

KE Holdings Inc. has disclosed several changes in its issued shares and treasury shares throughout May and June 2025. The company reported a series of share repurchases that have not yet been cancelled, with specific dates and repurchase prices detailed for each transaction. These actions reflect the company’s ongoing efforts to manage its share capital and potentially enhance shareholder value. The disclosure of these activities is in compliance with the rules governing the listing of securities on the Hong Kong Stock Exchange, indicating a transparent approach to its financial operations.

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: Sep 03, 2025