Ke Holdings Stock Fair Value Calculation – KE Holdings Reports Record-Breaking Quarter with $0.43 Non-GAAP EPADS and $2.95B Revenue
May 20, 2023
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KE ($NYSE:BEKE) Holdings Inc. (KE) reported record-breaking financial results for its first quarter, surpassing analysts’ estimates and putting it on track for a strong year. KE, a leading online real estate transaction platform in China, reported Non-GAAP EPADS of $0.43, which far exceeded the forecast of $0.25.
Additionally, the company reported revenue of $2.95B, significantly higher than the estimated $2.54B by $410M. This strong performance comes as KE is quickly becoming a leader in the online real estate transaction platform space. Through its suite of online services, KE is transforming how real estate transactions are conducted in China. By leveraging cutting-edge technology such as big data analytics, virtual reality, and artificial intelligence, KE is making it easier for both buyers and sellers to access the property market. With the addition of new services such as property management and home decoration, KE is positioned to continue its growth in the future.
Earnings
In its latest earning report for the fiscal year 2022 fourth quarter ending December 31, 2022, KE HOLDINGS reported record-breaking financial results. The total revenue was 16.75B CNY and 0.38B CNY in net income which equates to a non-GAAP EPADS of $0.43. This is a 5.8% decrease in total revenue and a 140.9% decrease in net income compared to the same period last year. Despite this decrease in revenue, KE HOLDINGS reported a record-breaking quarter with total revenue of 16.75B CNY and net income of 0.38CNY CNY, which is a remarkable improvement from the previous quarter.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ke Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 60.67k | -1.39k | -0.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ke Holdings. More…
| Operations | Investing | Financing |
| 8.46k | -8.47k | -1.15k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ke Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 109.35k | 40.29k | 57.41 |
Key Ratios Snapshot
Some of the financial key ratios for Ke Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.7% | – | -1.1% |
| FCF Margin | ROE | ROA |
| 13.9% | -0.6% | -0.4% |
Stock Price
However, despite the strong results, the company’s stock opened Thursday at $16.6 and closed at $15.0, a drop of 8.2% from the previous closing price of 16.3. This could be attributed to the overall market volatility or an indication of investor sentiment regarding the long-term prospects of the company. Nevertheless, KE Holdings can be proud of its impressive quarter and look forward to building upon this success in the future. Live Quote…
Analysis – Ke Holdings Stock Fair Value Calculation
At GoodWhale, we analyze the fundamentals of KE HOLDINGS to give you the best insights. Our proprietary Valuation Line indicates that the fair value of KE HOLDINGS share is around $27.7. Comparing this to the current trading price of $15.0, it looks like KE HOLDINGS is significantly undervalued – by 45.8%! So, now could be a good time to consider investing in KE HOLDINGS. More…
Summary
The company’s revenue also beat estimates, coming in at $2.95 billion, $410 million higher than expected. Despite the strong results, the company’s stock price moved down the same day. Investing in KE Holdings could be a good opportunity for investors as the company is consistently delivering strong financial performance and is well-positioned to capitalize on the long-term growth potential of the online real estate market. However, investors should analyze the current market environment and the company’s fundamentals before making any investment decisions.
