KE Holdings Inc's Meteoric Rise: Unpacking the 22% Surge in Just 3 Months

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KE Holdings Inc (BEKE, Financial), a leading player in the real estate industry, has seen a significant surge in its stock price over the past week and three months. The company's stock price has seen a gain of 29.19% over the past week and a 22.44% gain over the past three months. The current valuation of the stock, according to the GF Value, is $18.62, which is considered fairly valued. This is a notable improvement from three months ago when the stock was modestly undervalued with a GF Value of $18.25. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates.

Company Overview

KE Holdings Inc operates an integrated online and offline platform for housing transactions and services in China. The company's Beike platform reinvents how service providers and housing customers efficiently navigate and consummate housing transactions. This includes existing and new home sales, home rentals, home renovation, real estate financial solutions, and other services. The company operates in four segments: Existing home transaction services, New home transaction services, Home renovation and furnishing, and Emerging and other services. The company generates maximum revenue from the New home transaction services segment. 1698716495271428096.png

Profitability Analysis

KE Holdings Inc has a Profitability Rank of 4/10, indicating a moderate level of profitability. The company's Operating Margin is 5.57%, which is better than 34.13% of the companies in the industry. The company's ROE is 2.73%, better than 48.32% of the companies in the industry. The ROA is 1.74%, better than 55% of the companies in the industry. The ROIC is 2.70%, better than 59.08% of the companies in the industry. The company has been profitable for 1 year over the past 10 years, which is better than 3.29% of the companies in the industry. 1698716512950419456.png

Growth Analysis

KE Holdings Inc has a Growth Rank of 6/10, indicating a moderate level of growth. The company's 3-Year Revenue Growth Rate per Share is 9.90%, better than 66.23% of the companies in the industry. The 5-Year Revenue Growth Rate per Share is 20.50%, better than 85.43% of the companies in the industry. The Total Revenue Growth Rate (Future 3Y To 5Y Est) is 3.04%, better than 30.08% of the companies in the industry. The 3-Year EPS without NRI Growth Rate is 23.60%, better than 75.91% of the companies in the industry. The EPS Growth Rate (Future 3Y To 5Y Est) is 17.00%, better than 71.05% of the companies in the industry. 1698716528721002496.png

Major Shareholders

The company's major shareholders include Jim Simons (Trades, Portfolio), who holds 9,164,994 shares, representing 0.73% of the company's shares. The Matthews Pacific Tiger Fund (Trades, Portfolio) holds 3,935,772 shares, representing 0.32% of the company's shares. Baillie Gifford (Trades, Portfolio) holds 1,609,164 shares, representing 0.13% of the company's shares.

Competitor Analysis

KE Holdings Inc's main competitors in the real estate industry include Jones Lang LaSalle Inc (JLL, Financial) with a market cap of $8.38 billion, CoStar Group Inc (CSGP, Financial) with a market cap of $33.72 billion, and WeWork Inc (WE, Financial) with a market cap of $9.29 billion.

Conclusion

In conclusion, KE Holdings Inc has shown a significant improvement in its stock performance over the past three months. The company's profitability and growth ranks indicate a moderate level of profitability and growth. The company's major shareholders include Jim Simons (Trades, Portfolio), Matthews Pacific Tiger Fund (Trades, Portfolio), and Baillie Gifford (Trades, Portfolio). The company faces competition from Jones Lang LaSalle Inc, CoStar Group Inc, and WeWork Inc. Despite the competition, the company's current position and future prospects look promising.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.