KE Holdings Inc American Depositary Shares (each representing three Class A Ordinary Shares) (BEKE)

FairStock Score: 32/100 — RISKY

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.28, providing financial flexibility
• Established organization with 1,19,245 employees providing operational scale

Concerns

• Elevated P/E of 41.6x prices in substantial future growth that may not materialize
• Anemic revenue growth of 2.1% for a company of this size limits long-term upside
• Altman Z-Score of 0.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

KE Holdings Inc American Depositary Shares (each representing three Class A Ordinary Shares) is a mid-cap real estate company valued at $17.7 billion. The business generates $94.6 billion in annual revenue with a 0.1% net margin. From a quality standpoint, KE shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.7 warrants caution. On valuation, the stock is commanding a steep 41.6x multiple, with trades above its Graham Number with a negative 22% margin. Growth dynamics show revenue growing at 2.1% and profit growth of -36.0%. The 1.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 32/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 42x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Sluggish 2% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer