KE Holdings, Inc. Class A (2423) AI Stock Analysis

• Market Cap: HK$156.33B
• Dividend Yield: 2.22%
• Average Volume (3M): 7.58M
• Price to Earnings (P/E): 41.9
• Beta (1Y): 1.87
• Revenue Growth: 25.03%
• EPS Growth: -15.27%
• Country: HK
• Employees: 135,072
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.41
• Shares Outstanding: 3,366,778,000
• 10 Day Avg. Volume: 7,095,048
• 30 Day Avg. Volume: 7,584,211
• PEG Ratio: -1.30
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 18.05
• 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: HK$54.31
• Price Target Upside: 20.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$48.00 ▲(6.86% Upside)

KE Holdings shows strong revenue growth and a solid balance sheet, which are significant strengths. However, declining profit margins, high P/E ratio, and bearish technical indicators present challenges. The mixed sentiment from the earnings call further underscores the need for improved profitability and operational efficiency.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to maintain its market position and expand its service offerings, supporting long-term business sustainability.

AI Integration

Integrating AI into operations enhances efficiency and customer experience, providing a competitive edge and supporting future profitability.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Declining Profitability

A significant decline in profitability can impact the company's ability to reinvest in its business and return value to shareholders, posing a risk to long-term growth.

Liquidity Concerns

Reduced free cash flow indicates potential liquidity issues, which can limit the company's ability to fund operations and invest in growth initiatives.

Gross Margin Decline

A declining gross margin suggests increasing cost pressures and challenges in maintaining pricing power, which can affect long-term profitability.

KE Holdings, Inc. 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 provides Beike, an integrated online and offline platform for housing transactions and services; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; SaaS Systems; owns and operates Lianjia, a real estate brokerage branded store; owns Deyou brand for connected brokerage stores; and other brands. The company was founded in 2001 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

KE Holdings generates revenue primarily through its real estate services, which include online listings, transaction services, and advertising. The company earns a significant portion of its income from commissions on property transactions facilitated through its platform. Additionally, KE Holdings offers value-added services to real estate agents, creating another revenue stream. The company has established partnerships with various real estate developers and agencies, which enhances its inventory and service offerings, contributing to its overall earnings. Moreover, by leveraging big data and AI technologies, KE Holdings is able to provide tailored services that improve customer engagement and retention, further boosting its revenue potential.

KE Holdings, Inc. Class A Financial Statement Overview

Summary

KE Holdings demonstrates strong revenue growth and a solid balance sheet, positioning it well for future expansion. However, declining profit margins and mixed cash flow metrics highlight areas for improvement. The company should focus on enhancing operational efficiency and profitability to sustain its growth trajectory and improve financial stability.

Income Statement

KE Holdings shows strong revenue growth with a TTM growth rate of 45.4%, indicating robust expansion. However, margins have declined compared to previous years, with the TTM gross profit margin at 22.15% and net profit margin at 3.78%. The EBIT and EBITDA margins have also decreased, reflecting potential cost pressures. Overall, the company demonstrates growth potential but faces challenges in maintaining profitability margins.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.32, indicating prudent financial leverage. The equity ratio stands at 56.84%, showcasing a strong equity base. However, the return on equity has slightly decreased to 5.58% in the TTM, suggesting a need for improved profitability to enhance shareholder returns.

Cash Flow

Cash flow analysis reveals a mixed performance. The TTM free cash flow growth rate is positive at 19.82%, indicating improved cash generation. However, the operating cash flow to net income ratio is relatively low at 0.055, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio remains strong at 0.81, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	103.52B	93.46B	77.78B	60.67B	80.75B	70.48B
Gross Profit	22.63B	22.94B	21.72B	16.03B	19.07B	18.95B
EBITDA	4.88B	4.93B	9.31B	817.87M	762.60M	4.25B
Net Income	3.48B	4.06B	5.88B	-1.39B	-524.13M	2.78B
Balance Sheet
Total Assets	119.30B	133.15B	120.33B	122.77B	122.72B	123.66B
Cash, Cash Equivalents and Short-Term Investments	48.99B	52.76B	53.89B	54.90B	49.85B	56.66B
Total Debt	21.10B	22.65B	17.99B	12.19B	7.51B	7.99B
Total Liabilities	51.36B	61.70B	48.13B	45.24B	40.69B	44.47B
Stockholders Equity	67.84B	71.32B	72.10B	68.92B	66.97B	66.77B
Cash Flow
Free Cash Flow	2.43B	8.41B	10.28B	8.92B	2.61B	9.52B
Operating Cash Flow	2.91B	9.45B	11.16B	9.84B	4.33B	10.52B
Investing Cash Flow	4.99B	-9.38B	-3.98B	-8.47B	-24.88B	-14.98B
Financing Cash Flow	-7.97B	-5.79B	-6.96B	-1.21B	-1.07B	25.41B

KE Holdings, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.92
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2423, the sentiment is Positive. The current price of 44.92 is above the 20-day moving average (MA) of 43.20, above the 50-day MA of 43.59, and below the 200-day MA of 48.11, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 67.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2423.

KE Holdings, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6049	78 Outperform	HK$18.69B	11.35	15.94%	4.43%	6.54%	3.26%
2869	70 Outperform	HK$14.66B	17.08	10.30%	2.78%	-0.95%	14.89%
1209	67 Neutral	HK$106.14B	26.22	23.11%	2.92%	10.31%	8.93%
6098	66 Neutral	HK$21.00B	14.16	3.72%	4.94%	7.23%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2423	64 Neutral	HK$156.33B	41.90	5.57%	2.22%	25.03%	-15.27%
2602	58 Neutral	HK$22.36B	17.62	7.08%	1.77%	5.75%	-31.63%

KE Holdings, Inc. Class A Corporate Events

KE Holdings Grants Over 1.2 Million RSUs to 66 Employees Under 2020 Incentive Plan

KE Holdings Inc. has approved the grant of 1,217,241 restricted share units (RSUs), representing an equal number of Class A ordinary shares, to 66 employees under its 2020 Share Incentive Plan, effective January 1, 2026. The grants, which do not require shareholder approval and exclude directors, chief executives and substantial shareholders, will vest in multiple tranches over periods ranging from 33 to 48 months, with some portions vesting in less than 12 months to deliver more immediate incentives and better align employee interests with those of shareholders; no performance targets are attached to the vesting of these RSUs, underscoring the company’s use of equity-based compensation as a tool for retention and motivation in a competitive talent market.

The most recent analyst rating on (HK:2423) stock is a Hold with a HK$48.00 price target. To see the full list of analyst forecasts on KE Holdings, Inc. Class A stock, see the HK:2423 Stock Forecast page.

KE Holdings Reports Q3 2025 Financial Results with Stable GTV and Revenue Growth

KE Holdings Inc. reported its unaudited financial results for the third quarter of 2025, showing a stable gross transaction value (GTV) of RMB736.7 billion, with a slight increase in existing home transactions and a decline in new home transactions. The company’s net revenues rose by 2.1% year-over-year to RMB23.1 billion, while net income decreased by 36.1% to RMB747 million. Despite the decline in net income, the company expanded its number of stores and agents significantly, and its mobile monthly active users increased to 49.3 million. KE Holdings is focusing on improving operational efficiency and customer experience through technological innovations, such as integrating AI into home rental services, which contributed over RMB100 million in profit for the quarter.

The most recent analyst rating on (HK:2423) stock is a Buy with a HK$47.00 price target. To see the full list of analyst forecasts on KE Holdings, Inc. Class A stock, see the HK:2423 Stock Forecast page.