KE Holdings Inc. Sponsored ADR Class A (BEKE) AI Stock Analysis

• Market Cap: $22.21B
• Dividend Yield: 1.98%
• Average Volume (3M): 9.46M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 0.71
• Revenue Growth: 34.99%
• EPS Growth: 28.80%
• Country: US
• Employees: 135,072
• Sector: Real Estate
• Sector Strength: 73
• Industry: Real Estate - Services
• EPS (TTM): 0.17
• Shares Outstanding: 1,152,965,600
• 10 Day Avg. Volume: 14,705,481
• 30 Day Avg. Volume: 9,459,480
• PEG Ratio: -0.37
• Price to Book (P/B): 9.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -504.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $25.26
• Price Target Upside: 40.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: $20.00 ▲(11.11%Upside)

KE Holdings demonstrates strong financial performance and promising growth prospects, supported by strategic initiatives and AI deployment. However, technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. The earnings call underscores growth but highlights challenges in profit margins.

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 Guidance

The company's 2Q25/FY25 guidance implies non-GAAP NP significantly below market expectations.

Net Profit Miss

Net profit missed mainly owing to Rmb1.5bn one-off costs, plus some rise in existing home fixed costs and variable costs from rise in Lianjia agent count and compensation.

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 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 four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, 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; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers 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 Money

KE Holdings Inc. generates revenue primarily through commission fees from real estate transactions facilitated on its platform. The company earns a percentage of the transaction value when properties are bought, sold, or rented using its services. Additionally, KE Holdings Inc. offers value-added services such as financial products, home renovation, and furnishing services, which contribute to its revenue. The company also benefits from partnerships with real estate developers and financial institutions, which help expand its service offerings and customer base.

KE Holdings Inc. Sponsored ADR Class A Financial Statement Overview

Summary

KE Holdings has shown strong financial performance with robust revenue growth and profitability. The company maintains a healthy balance sheet and strong cash flow metrics, indicating robust liquidity and financial flexibility. Attention should be paid to potential risks associated with revenue volatility and leverage.

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.

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.

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
100.41B	93.46B	77.78B	60.67B	80.75B	70.48B
	Gross Profit
23.64B	22.94B	21.72B	13.78B	15.82B	16.86B
	EBIT
4.34B	3.76B	4.80B	-1.19B	-608.16M	1.78B
	EBITDA
4.77B	4.90B	9.31B	817.87M	762.60M	4.25B
	Net Income Common Stockholders
4.49B	4.06B	5.88B	-1.40B	-524.77M	2.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.65B	52.76B	53.89B	54.90B	49.85B	56.66B
	Total Assets
130.61B	133.15B	120.33B	109.35B	100.32B	104.30B
	Total Debt
22.34B	22.65B	17.99B	12.19B	7.51B	7.99B
	Net Debt
9.57B	11.21B	-1.65B	-7.22B	-12.94B	-32.98B
	Total Liabilities
61.66B	61.70B	48.13B	40.29B	33.26B	37.50B
	Stockholders Equity
68.83B	71.32B	72.10B	68.92B	66.97B	66.77B
Cash Flow		Free Cash Flow
6.46B	8.41B	10.28B	7.67B	2.17B	8.47B
	Operating Cash Flow
6.46B	9.45B	11.16B	8.46B	3.60B	9.36B
	Investing Cash Flow
-4.38B	-9.38B	-3.98B	-8.47B	-24.88B	-14.98B
	Financing Cash Flow
-4.15B	-5.79B	-6.96B	-1.15B	-1.07B	25.41B

KE Holdings Inc. Sponsored ADR Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 18 is below the 20-day moving average (MA) of 18.60, below the 50-day MA of 19.32, and below the 200-day MA of 19.23, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 21.84 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JLL	77 Outperform	$11.27B	21.56	8.16%	―	13.63%	78.40%
CBRE	74 Outperform	$39.79B	40.89	12.15%	―	13.14%	1.70%
CSGP	72 Outperform	$33.57B	277.14	1.47%	―	11.27%	-60.22%
BEKE	70 Outperform	$22.21B	34.29	6.53%	1.98%	34.99%	28.80%
CWK	70 Outperform	$2.41B	15.14	9.53%	―	1.24%	1205.18%
Sector *	61 Neutral	$2.83B	10.89	0.42%	9.23%	5.94%	-21.26%
XHG	38 Underperform	$3.60B	―	40.75%	―	―	―