KE HOLDINGS INC-ADR (BEKE) Stock Fundamental Analysis
NYSE:BEKE - New York Stock Exchange, Inc. - US4824971042 - ADR - Currency: USD
BEKE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 industry peers in the Real Estate Management & Development industry. BEKE has an average financial health and profitability rating. BEKE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BEKE was profitable.
BEKE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BEKE reported negative net income in multiple years.
Each year in the past 5 years BEKE had a positive operating cash flow.
1.2 Ratios
BEKE has a Return On Assets of 3.44%. This is amongst the best in the industry. BEKE outperforms 87.69% of its industry peers.
BEKE's Return On Equity of 6.52% is fine compared to the rest of the industry. BEKE outperforms 78.46% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.87%, BEKE is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 6.52% | ||
| ROIC | 3.87% |
ROA(3y)2.22%
ROA(5y)1.37%
ROE(3y)3.95%
ROE(5y)2.43%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 4.47%, BEKE is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
BEKE has a better Operating Margin (4.48%) than 66.15% of its industry peers.
BEKE has a Gross Margin (23.55%) 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 | 4.48% | ||
| PM (TTM) | 4.47% | ||
| GM | 23.55% |
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
BEKE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BEKE has been reduced compared to 1 year ago.
The number of shares outstanding for BEKE has been increased compared to 5 years ago.
BEKE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.54 indicates that BEKE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.54, BEKE is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
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 | 2.54 |
ROIC/WACC0.52
WACC7.48%
2.3 Liquidity
BEKE has a Current Ratio of 1.33. This is a normal value and indicates that BEKE is financially healthy and should not expect problems in meeting its short term obligations.
BEKE's Current ratio of 1.33 is in line compared to the rest of the industry. BEKE outperforms 52.31% of its industry peers.
BEKE has a Quick Ratio of 1.33. 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 of 1.33. This is comparable to the rest of the industry: BEKE outperforms 55.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
BEKE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.09%.
BEKE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 46.64% yearly.
BEKE shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.91%.
Measured over the past years, BEKE shows a quite strong growth in Revenue. The Revenue has been growing by 15.22% on average per year.
EPS 1Y (TTM)-4.09%
EPS 3Y46.64%
EPS 5YN/A
EPS Q2Q%0.76%
Revenue 1Y (TTM)35.91%
Revenue growth 3Y4.99%
Revenue growth 5Y15.22%
Sales Q2Q%42.44%
3.2 Future
BEKE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.15% yearly.
Based on estimates for the next years, BEKE will show a small growth in Revenue. The Revenue will grow by 2.38% on average per year.
EPS Next Y24.6%
EPS Next 2Y19.11%
EPS Next 3Y17.15%
EPS Next 5YN/A
Revenue Next Year18.46%
Revenue Next 2Y15.26%
Revenue Next 3Y14.21%
Revenue Next 5Y2.38%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.49, which indicates a rather expensive current valuation of BEKE.
Based on the Price/Earnings ratio, BEKE is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.29. BEKE is valued slightly cheaper when compared to this.
BEKE is valuated correctly with a Price/Forward Earnings ratio of 15.15.
Based on the Price/Forward Earnings ratio, BEKE is valued cheaper than 89.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BEKE to the average of the S&P500 Index (21.74), we can say BEKE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 15.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEKE is valued a bit cheaper than 78.46% of the companies in the same industry.
BEKE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BEKE is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.11 | ||
| EV/EBITDA | 14.14 |
4.3 Compensation for Growth
BEKE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BEKE's earnings are expected to grow with 17.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y19.11%
EPS Next 3Y17.15%
5. Dividend
5.1 Amount
BEKE has a Yearly Dividend Yield of 2.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.58, BEKE pays a better dividend. On top of this BEKE pays more dividend than 87.69% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, BEKE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
BEKE has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y19.11%
EPS Next 3Y17.15%
18.05
+0.38 (+2.15%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners5.09%
Inst Owner Change0%
Ins Owners4.83%
Ins Owner ChangeN/A
Market Cap21.50B
Analysts88.18
Price Target20.64 (14.35%)
Short Float %3.58%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend0.33
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.01%
Min EPS beat(2)-49.05%
Max EPS beat(2)-0.96%
EPS beat(4)1
Avg EPS beat(4)-19.29%
Min EPS beat(4)-49.05%
Max EPS beat(4)18.46%
EPS beat(8)4
Avg EPS beat(8)-4.64%
EPS beat(12)8
Avg EPS beat(12)20.48%
EPS beat(16)10
Avg EPS beat(16)15.39%
Revenue beat(2)2
Avg Revenue beat(2)15.8%
Min Revenue beat(2)13.71%
Max Revenue beat(2)17.88%
Revenue beat(4)2
Avg Revenue beat(4)5.57%
Min Revenue beat(4)-8.74%
Max Revenue beat(4)17.88%
Revenue beat(8)3
Avg Revenue beat(8)0.86%
Revenue beat(12)5
Avg Revenue beat(12)3.36%
Revenue beat(16)9
Avg Revenue beat(16)4.34%
PT rev (1m)-25.13%
PT rev (3m)-23.95%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-19.24%
EPS NY rev (1m)0.36%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 15.15 | ||
| P/S | 1.54 | ||
| P/FCF | 24.11 | ||
| P/OCF | 24.11 | ||
| P/B | 2.24 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 14.14 |
EPS(TTM)0.84
EY4.65%
EPS(NY)1.19
Fwd EY6.6%
FCF(TTM)0.75
FCFY4.15%
OCF(TTM)0.75
OCFY4.15%
SpS11.75
BVpS8.06
TBVpS7.4
PEG (NY)0.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 6.52% | ||
| ROCE | 5.77% | ||
| ROIC | 3.87% | ||
| ROICexc | 9.08% | ||
| ROICexgc | 10.92% | ||
| OM | 4.48% | ||
| PM (TTM) | 4.47% | ||
| GM | 23.55% | ||
| FCFM | 6.37% |
ROA(3y)2.22%
ROA(5y)1.37%
ROE(3y)3.95%
ROE(5y)2.43%
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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.15% | ||
| Profit Quality | 142.51% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 2.54 |
F-Score6
WACC7.48%
ROIC/WACC0.52
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)-4.09%
EPS 3Y46.64%
EPS 5YN/A
EPS Q2Q%0.76%
EPS Next Y24.6%
EPS Next 2Y19.11%
EPS Next 3Y17.15%
EPS Next 5YN/A
Revenue 1Y (TTM)35.91%
Revenue growth 3Y4.99%
Revenue growth 5Y15.22%
Sales Q2Q%42.44%
Revenue Next Year18.46%
Revenue Next 2Y15.26%
Revenue Next 3Y14.21%
Revenue Next 5Y2.38%
EBIT growth 1Y133.6%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year42.54%
EBIT Next 3Y27.09%
EBIT Next 5Y15.63%
FCF growth 1Y-58.06%
FCF growth 3Y57.19%
FCF growth 5YN/A
OCF growth 1Y-58.06%
OCF growth 3Y37.99%
OCF growth 5Y142.51%