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Key Factors to Evaluate Before Investing in KE (BEKE)

With gains of 5.9%, KE was one of the winners on Wall Street today. Its shares are now trading at $20.61 and have logged a -1.0% daily outperformance of the S&P 500. Don't join the feeding frenzy before checking some basic facts about this stock:

  • KE has moved 41.3% over the last year, and the S&P 500 logged a change of 21.4%

  • Its trailing earnings per share (EPS) is $0.48

  • KE has a trailing 12 month Price to Earnings (P/E) ratio of 42.9 while the S&P 500 average is 29.3

  • Its forward earnings per share (EPS) is $1.16 and its forward P/E ratio is 17.8

  • The company has a Price to Book (P/B) ratio of 0.35 in contrast to the S&P 500's average ratio of 4.74

  • KE is part of the Finance sector, which has an average P/E ratio of 20.04 and an average P/B of 1.86

  • BEKE has reported YOY quarterly earnings growth of 50.0% and gross profit margins of 0.3%

  • The company has a free cash flow of $3.26 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter

  • KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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