KE Holdings Inc (BEKE, Financial), a prominent player in the real estate industry, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by 26.47%, from a GF Value of $16.27 to $18.61, marking a substantial gain for investors. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. This article aims to delve into the factors contributing to this impressive performance and provide an in-depth analysis of the company's financial health and growth prospects.
Unpacking KE Holdings Inc's Business Model
KE Holdings Inc operates an integrated online and offline platform for housing transactions and services in the People's Republic of China. The company's Beike platform revolutionizes how service providers and housing customers efficiently navigate and consummate housing transactions. These transactions range from existing and new home sales, home rentals, to home renovation, real estate financial solutions, and other services. The company operates in four segments, with the New home transaction services segment generating the maximum revenue. 
Profitability Analysis
KE Holdings Inc's Profitability Rank stands at 4/10, indicating moderate profitability. The company's Operating Margin is 5.57%, better than 34.02% of companies in the same industry. The company's ROE and ROA are 2.73% and 1.74% respectively, while its ROIC stands at 2.70%. Over the past 10 years, the company has been profitable for 1 year. 
Growth Prospects
The company's Growth Rank is 6/10, indicating moderate growth. The 3-Year Revenue Growth Rate per Share is 9.90%, and the 5-Year Revenue Growth Rate per Share is 20.50%. The company's future total revenue growth rate estimate is 3.08%. The 3-Year EPS without NRI Growth Rate is 23.60%, and the future EPS without NRI growth rate estimate is 16.00%. 
Major Stock Holders
The top three holders of KE Holdings Inc's stock are Jim Simons (Trades, Portfolio), who holds a 0.73% share, Matthews Pacific Tiger Fund (Trades, Portfolio) with a 0.32% share, and Baillie Gifford (Trades, Portfolio), holding a 0.13% share. These holdings could have significant implications for the stock's performance.
Competitive Landscape
KE Holdings Inc operates in a competitive industry with major players like Jones Lang LaSalle Inc (JLL, Financial) with a market cap of $8.32 billion, CoStar Group Inc (CSGP, Financial) with a market cap of $33.56 billion, and WeWork Inc (WE, Financial) with a market cap of $235.085 million.
Conclusion
In conclusion, KE Holdings Inc's stock has shown impressive performance over the past three months, driven by its robust business model, moderate profitability, and growth prospects. Despite the competitive landscape, the company's future looks promising, and it could offer substantial returns for investors.
