KE Holdings Inc (BEKE, Financial), a leading player in the real estate industry in the People's Republic of China, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by 16.19%, from a GF Value of $18.35 to the current price of $17.22. This impressive performance has pushed the company's market cap to $21.42 billion. Over the past week, the stock has further gained 6.09%, indicating a strong upward trend. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the stock is fairly valued, but it was modestly undervalued three months ago.
Company Overview
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. This includes existing and new home sales, home rentals, home renovation, real estate financial solutions, and other services. The company operates in four segments, with the New home transaction services segment being the primary revenue source. This innovative business model has positioned KE Holdings Inc as a key player in the real estate industry.
Profitability Analysis
KE Holdings Inc has a Profitability Rank of 4/10, indicating its relative profitability within the industry. The company's Operating Margin stands at 8.73%, better than 41.46% of companies in the industry. The company's ROE is 7.35%, ROA is 4.60%, and ROIC is 7.02%, all of which are better than a significant percentage of companies in the industry. Over the past 10 years, the company has been profitable for 1 year, better than 3.45% of companies in the industry.
Growth Prospects
The company's Growth Rank is 5/10, indicating its relative growth within the industry. The company's 3-year and 5-year revenue growth rates per share are 9.90% and 20.50% respectively, both of which are better than a significant percentage of companies in the industry. The company's future 3-year to 5-year total revenue growth rate estimate is 2.86%, and its EPS without NRI growth rate estimate is 17.00%, both of which are better than a significant percentage of companies in the industry.
Major Stock Holders
The top three holders of the company's stock are Jim Simons (Trades, Portfolio), who holds 0.73% of shares, Matthews Pacific Tiger Fund (Trades, Portfolio), which holds 0.32% of shares, and Baillie Gifford (Trades, Portfolio), which holds 0.13% of shares.
Competitive Landscape
KE Holdings Inc faces competition from several companies within the real estate industry. These include Jones Lang LaSalle Inc (JLL, Financial) with a market cap of $6.59 billion, CoStar Group Inc (CSGP, Financial) with a market cap of $33.65 billion, and WeWork Inc (WE, Financial) with a market cap of $120.813 million.
Conclusion
In conclusion, KE Holdings Inc has demonstrated impressive stock performance, profitability, and growth. The company's innovative business model and strong financial performance have positioned it as a key player in the real estate industry. With top investors like Jim Simons (Trades, Portfolio), Matthews Pacific Tiger Fund (Trades, Portfolio), and Baillie Gifford (Trades, Portfolio) holding its stock, the company's future prospects look promising. However, the company faces stiff competition from other industry players, which it must navigate to maintain its growth trajectory.
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.
