Why KE Holdings Inc's Stock Skyrocketed 15% in a Quarter

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 quarter. The company's stock price has risen by 15.48% over the past three months, reaching a current price of $16.41. This impressive performance has boosted the company's market cap to $20.41 billion. Over the past week alone, the stock has gained 5.44%, indicating a strong upward trend.

Understanding KE Holdings Inc's GF Value and Valuation

The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, KE Holdings Inc's GF Value stands at $17.68, down from $18.35 three months ago. Despite this slight decrease, the company's GF Valuation has improved from "Modestly Undervalued" to "Fairly Valued", suggesting that the stock's recent price increase is justified by its intrinsic value.

Company Overview: KE Holdings Inc

KE Holdings Inc operates an integrated online and offline platform for housing transactions and services in China. The company's Beike platform revolutionizes how service providers and housing customers efficiently navigate and consummate housing transactions, ranging from existing and new home sales, home rentals, to home renovation, real estate financial solutions, and other services. The company generates maximum revenue from its New home transaction services segment. 1711762540159102976.png

Profitability Analysis of KE Holdings Inc

KE Holdings Inc's Profitability Rank stands at 4/10, indicating moderate profitability. The company's Operating Margin of 8.73% is better than 41.42% of companies in the same industry. Furthermore, the company's ROE, ROA, and ROIC, which are 7.35%, 4.60%, and 7.02% respectively, indicate a relatively efficient use of capital. Over the past 10 years, the company has been profitable for 1 year. 1711762560379842560.png

Growth Prospects of KE Holdings Inc

KE Holdings Inc's Growth Rank is 5/10, indicating moderate growth. The company's 3-year and 5-year revenue growth rates per share are 9.90% and 20.50% respectively. The company's future 3-year to 5-year total revenue growth rate estimate is 2.84%. Furthermore, the company's 3-year EPS without NRI growth rate is 23.60%, and its future 3-year to 5-year EPS without NRI growth rate estimate is 17.00%. 1711762578197245952.png

Top Holders of KE Holdings Inc's Stock

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), which holds a 0.32% share, and Baillie Gifford (Trades, Portfolio), which holds a 0.13% share.

Competitors in the Real Estate Industry

KE Holdings Inc faces competition from several companies in the Real Estate industry. Its main competitors include Jones Lang LaSalle Inc, with a market cap of $6.45 billion, CoStar Group Inc, with a market cap of $33.66 billion, and WeWork Inc, with a market cap of $119.231 million.

Conclusion

In conclusion, KE Holdings Inc's stock performance, profitability, growth, holders, and competitors all paint a picture of a company that is performing well in the Real Estate industry. The company's stock price has seen a significant increase over the past quarter, and its GF Valuation suggests that this increase is justified by its intrinsic value. With moderate profitability and growth, and a strong position in the industry, KE Holdings Inc is a company to watch in the future.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

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.