KE HOLDINGS INC-ADR (BEKE) Stock Fundamental Analysis
NYSE:BEKE - New York Stock Exchange, Inc. - US4824971042 - ADR - Currency: USD
Taking everything into account, BEKE scores 5 out of 10 in our fundamental rating. BEKE was compared to 65 industry peers in the Real Estate Management & Development industry. BEKE has an average financial health and profitability rating. BEKE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BEKE was profitable.
BEKE had a positive operating cash flow in the past year.
In multiple years BEKE reported negative net income over the last 5 years.
In the past 5 years BEKE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.05%, BEKE belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
BEKE has a Return On Equity of 5.70%. This is in the better half of the industry: BEKE outperforms 76.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.27%, BEKE is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 5.7% | ||
| ROIC | 3.27% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BEKE has a better Profit Margin (4.35%) than 76.92% of its industry peers.
The Operating Margin of BEKE (4.19%) is better than 69.23% of its industry peers.
BEKE has a Gross Margin (24.55%) which is in line with its industry peers.
BEKE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.19% | ||
| PM (TTM) | 4.35% | ||
| GM | 24.55% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.81%
GM growth 5Y0.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BEKE is destroying value.
BEKE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.83 indicates that BEKE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BEKE (2.83) is better than 75.38% of its industry peers.
BEKE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.43
WACC7.54%
2.3 Liquidity
BEKE has a Current Ratio of 1.45. This is a normal value and indicates that BEKE is financially healthy and should not expect problems in meeting its short term obligations.
BEKE has a Current ratio of 1.45. This is comparable to the rest of the industry: BEKE outperforms 49.23% of its industry peers.
BEKE has a Quick Ratio of 1.45. This is a normal value and indicates that BEKE is financially healthy and should not expect problems in meeting its short term obligations.
BEKE has a Quick ratio (1.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
BEKE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.67%.
Measured over the past years, BEKE shows a very strong growth in Earnings Per Share. The EPS has been growing by 47.02% on average per year.
The Revenue has grown by 20.16% in the past year. This is a very strong growth!
The Revenue has been growing by 15.22% on average over the past years. This is quite good.
EPS 1Y (TTM)-24.67%
EPS 3Y47.02%
EPS 5YN/A
EPS Q2Q%-22.41%
Revenue 1Y (TTM)20.16%
Revenue growth 3Y4.99%
Revenue growth 5Y15.22%
Sales Q2Q%54.05%
3.2 Future
The Earnings Per Share is expected to grow by 17.15% on average over the next years. This is quite good.
BEKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.38% yearly.
EPS Next Y24.6%
EPS Next 2Y19.11%
EPS Next 3Y17.15%
EPS Next 5YN/A
Revenue Next Year16.18%
Revenue Next 2Y13.99%
Revenue Next 3Y13.21%
Revenue Next 5Y2.38%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.78, which means the current valuation is very expensive for BEKE.
Based on the Price/Earnings ratio, BEKE is valued a bit cheaper than the industry average as 75.38% of the companies are valued more expensively.
BEKE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.79.
The Price/Forward Earnings ratio is 20.63, which indicates a rather expensive current valuation of BEKE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BEKE indicates a rather cheap valuation: BEKE is cheaper than 81.54% of the companies listed in the same industry.
BEKE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.78 | ||
| Fwd PE | 20.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEKE is valued a bit cheaper than 72.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BEKE indicates a somewhat cheap valuation: BEKE is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.29 | ||
| EV/EBITDA | 19.01 |
4.3 Compensation for Growth
BEKE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as BEKE's earnings are expected to grow with 17.15% in the coming years.
PEG (NY)1.05
PEG (5Y)N/A
EPS Next 2Y19.11%
EPS Next 3Y17.15%
5. Dividend
5.1 Amount
BEKE has a Yearly Dividend Yield of 1.68%.
Compared to an average industry Dividend Yield of 3.70, BEKE pays a better dividend. On top of this BEKE pays more dividend than 89.23% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.47, BEKE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
BEKE has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
69.64% of the earnings are spent on dividend by BEKE. This is not a sustainable payout ratio.
DP69.64%
EPS Next 2Y19.11%
EPS Next 3Y17.15%
21.4
-0.68 (-3.08%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners2.19%
Inst Owner Change-53.61%
Ins Owners4.76%
Ins Owner ChangeN/A
Market Cap25.72B
Analysts86
Price Target26.47 (23.69%)
Short Float %5.3%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend0.16
Dividend Growth(5Y)N/A
DP69.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-47.32%
Min EPS beat(2)-49.05%
Max EPS beat(2)-45.59%
EPS beat(4)2
Avg EPS beat(4)-9.65%
Min EPS beat(4)-49.05%
Max EPS beat(4)37.6%
EPS beat(8)5
Avg EPS beat(8)10.59%
EPS beat(12)9
Avg EPS beat(12)28.89%
EPS beat(16)11
Avg EPS beat(16)17.31%
Revenue beat(2)1
Avg Revenue beat(2)4.57%
Min Revenue beat(2)-8.74%
Max Revenue beat(2)17.88%
Revenue beat(4)1
Avg Revenue beat(4)1.58%
Min Revenue beat(4)-8.74%
Max Revenue beat(4)17.88%
Revenue beat(8)3
Avg Revenue beat(8)1.35%
Revenue beat(12)5
Avg Revenue beat(12)2.37%
Revenue beat(16)9
Avg Revenue beat(16)4.07%
PT rev (1m)0.05%
PT rev (3m)22.23%
EPS NQ rev (1m)-8.04%
EPS NQ rev (3m)-12.29%
EPS NY rev (1m)2.74%
EPS NY rev (3m)-7.57%
Revenue NQ rev (1m)3.22%
Revenue NQ rev (3m)26.79%
Revenue NY rev (1m)4.83%
Revenue NY rev (3m)5.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.78 | ||
| Fwd PE | 20.63 | ||
| P/S | 2.01 | ||
| P/FCF | 22.29 | ||
| P/OCF | 19.85 | ||
| P/B | 2.63 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 19.01 |
EPS(TTM)0.83
EY3.88%
EPS(NY)1.04
Fwd EY4.85%
FCF(TTM)0.96
FCFY4.49%
OCF(TTM)1.08
OCFY5.04%
SpS10.67
BVpS8.14
TBVpS7.5
PEG (NY)1.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 5.7% | ||
| ROCE | 4.87% | ||
| ROIC | 3.27% | ||
| ROICexc | 9.5% | ||
| ROICexgc | 11.93% | ||
| OM | 4.19% | ||
| PM (TTM) | 4.35% | ||
| GM | 24.55% | ||
| FCFM | 9% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.81%
GM growth 5Y0.05%
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 102.45% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 314.18 | ||
| Cash Conversion | 191.67% | ||
| Profit Quality | 206.89% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 2.83 |
F-Score6
WACC7.54%
ROIC/WACC0.43
Cap/Depr(3y)72.52%
Cap/Depr(5y)79.49%
Cap/Sales(3y)1.18%
Cap/Sales(5y)1.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.67%
EPS 3Y47.02%
EPS 5YN/A
EPS Q2Q%-22.41%
EPS Next Y24.6%
EPS Next 2Y19.11%
EPS Next 3Y17.15%
EPS Next 5YN/A
Revenue 1Y (TTM)20.16%
Revenue growth 3Y4.99%
Revenue growth 5Y15.22%
Sales Q2Q%54.05%
Revenue Next Year16.18%
Revenue Next 2Y13.99%
Revenue Next 3Y13.21%
Revenue Next 5Y2.38%
EBIT growth 1Y-19.92%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year62.39%
EBIT Next 3Y29.49%
EBIT Next 5Y15.63%
FCF growth 1Y-18.22%
FCF growth 3Y57.19%
FCF growth 5YN/A
OCF growth 1Y-15.33%
OCF growth 3Y37.99%
OCF growth 5Y142.51%