KE may be overvalued with poor growth indicators, but the 19 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $14.97 to $30.95 per share, for an average of $22.3. At today's price of $19.14, KE is trading -14.19% away from its average target price, suggesting there is an analyst consensus of some upside potential.
KE Holdings Inc. is involved in the operation of an integrated online and offline platform for housing transactions and services in the People's Republic of China. The large-cap Real Estate company is headquartered in Beijing, China.
KE does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of 0.64, the company has a forward P/E ratio of 29.9. In comparison, the average P/E ratio for the Real Estate sector is 24.81. On the other hand, the market is undervaluing KE in terms of its net assets because its P/B ratio is 1.947. In comparison, the sector average is 2.24.
So why are analysts giving BEKE a good rating? We believe analysts could be encouraged by the company's impressive 295.4% rate of cash flow growth over the last 5 years. They might also believe KE's positive revenue and margin growth trend will continue.
| 2018-12-31 | 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $28,646 | $46,015 | $70,481 | $80,752 |
| Revenue Growth | n/a | 60.63% | 53.17% | 14.57% |
| Gross Margins | 23.98% | 24.49% | 23.92% | 19.59% |
| Gross Margins Growth | n/a | 2.13% | -2.33% | -18.1% |
| Operating Margins | -4.25% | -3.88% | 4.03% | -1.68% |
| Operating Margins Growth | n/a | 8.71% | 203.87% | -141.69% |
| Earnings Per Share | -$0.47 | -$2.64 | $3.68 | -$0.44 |
| EPS Growth | n/a | -461.7% | 239.39% | -111.96% |
| Diluted Shares (MM) | 1,001 | 826 | 756 | 1,183 |
| Free Cash Flow (MM) | $2,674 | -$590 | $8,475 | $2,165 |
| FCF Growth | n/a | -122.08% | 1535.5% | -74.45% |
| Capital Expenditures (MM) | $543 | $703 | $887 | $1,430 |
