KE Holdings Inc. Receives Mixed Ratings from Guru Strategies

KE Holdings Inc. - ADR (BEKE) has been rated 58% according to the Price/Sales Investor model. While it passes some criteria, it fails to meet key metrics like EPS growth and profit margins, which could directly impact investor sentiment.

Date: 17-02-2025

AI Rating: 5

Stock Performance Overview
KE Holdings Inc. - ADR (BEKE) has received a 58% rating based on the Price/Sales Investor strategy by Kenneth Fisher. This rating, while indicating some potential, also highlights significant weaknesses in its financials.

Earnings Per Share (EPS)
The report indicates a FAIL for the long-term EPS growth rate, which is a crucial metric for assessing future earnings potential. This rating could deter investors looking for stable or growing EPS, likely leading to pressure on the stock price.

Free Cash Flow (FCF)
On a positive note, the stock passes the test for free cash per share. A healthy free cash flow suggests that the company has sufficient liquidity to support operations and investments, which could be a positive sign for long-term investors. This pass could stabilize investor confidence to some extent.

Profit Margins
The analysis reveals a FAIL for the three-year average net profit margin, a fundamental indicator of operational efficiency and profitability. Weak profit margins could lead investors to question the company's ability to sustain profits in a competitive landscape.

Debt and Valuation Metrics
Despite failing in several critical categories, the total debt/equity ratio passes, indicating that the company maintains a manageable level of debt relative to its equity. This could be comforting to investors concerned about financial stability. However, the presence of failures in key areas could overshadow this, leading to mixed market reactions.

Conclusion

Stocks: BEKE