Recent News
On May 19, 2026 the company published its first-quarter 2026 unaudited financial results; on June 12, 2026 shareholders approved proposed resolutions at the annual general meeting, including expanded board mandates and authority related to share issuance and repurchases; in July 2026 the company disclosed late‑June/early‑July repurchases and W‑share class buybacks totaling roughly $5 million.
Technical Analysis
ADX stands at 18.01, indicating no strong trend; that lack of trend strength keeps near-term directional conviction limited and supports a range-bound bias around current prices relative to the valuation gap noted below.
Directional indicators show DI+ at 36.45 with a peak-and-reversal, which signals bearish directional pressure; DI- at 25.08 with a dip-and-reversal also signals increased downside pressure. These opposing but both-bearish DI moves suggest sellers recently reasserted control, tempering the case for a sustained breakout despite undervaluation.
MACD sits at 0.29 above its signal (0.24), representing a bullish cross event; the MACD trend registers a peak-and-reversal, however, which signals waning bullish momentum. The net read: a short-lived bullish signal faces an early deterioration of momentum, increasing the odds of a pullback before any durable advance.
MRO equals 16.96 and trends increasing; the positive MRO indicates price sits above the oscillator’s target and therefore carries a tendency to correct downward, which implies room for consolidation against the current valuation gap.
RSI reads 53.91 with a peak-and-reversal trend; the near‑neutral RSI combined with its reversal points to reduced upside conviction and a higher probability of sideways-to-lower movement unless momentum re-accelerates.
Price sits marginally above short- and long-term averages: 12‑day EMA at $16.95 (increasing) and 200‑day average at $16.57. Price closed at $16.96 with the supertrend lower support at $16.57 and a mean analyst price target near $17.15, so moving averages place current price close to stated support and consensus targets, reinforcing a tight trading range absent fresh catalysts.
Fundamental Analysis
Revenue totaled $18,891,977,000. Reported net income from continuing operations reached $1,255,491,000 and operating income (EBIT) $1,272,720,000, producing an operating margin of 6.737%. Operating margin improved year-over-year by 166.074% while contracting quarter-over-quarter by 35.395%, indicating recent margin volatility despite stronger annual comparatives.
EPS came in at $1.42 versus an estimate of $0.91, an EPS surprise of 56.04% ($0.51); forward EPS sits at $0.282, implying elevated near-term earnings variability and a forward P/E of 60.21. Trailing P/E measures 11.91 and price-to-book stands at 0.884, placing the stock on the cheaper side of traditional valuation multiples even as forward multiples reflect lower expected earnings.
Cash and short‑term investments total $44,985,887,000 and the cash ratio equals 109.60%, while total debt totals $16,270,971,000 and debt-to-equity equals 25.277%. Strong liquidity and modest leverage increase flexibility for capital allocation, consistent with the company’s recent buyback activity and the WMDST view that the current valuation reads as under‑valued.
Free cash flow registers negative $1,471,302,000 and free cash flow yield stands at -2.584%, reflecting cash conversion pressure; operating cash flow also appears negative for the period, so earnings strength did not fully translate to positive free cash flow this quarter. Receivables and inventory metrics (receivables turnover 4.738x, inventory turnover 5.069x) maintain operating cycles consistent with the business model; the cash conversion cycle at 5.13 days supports operational liquidity.
Where industry peer comparisons exist: operating margin at 6.737% sits above the industry peer mean operating margin of 3.111% and above the industry peer median of 1.995%, placing KE Holdings favorably within the industry peer range on margin metrics. Earnings growth year-over-year shows a 3,239.136% improvement (per the reported figure), but quarter-over-quarter earnings growth contracted by 454.148%, which underscores intra-year volatility in reported growth rates.
Valuation conclusion: WMDST values the stock as under‑valued. Trailing multiples and a large cash stockpile support that assessment, but negative free cash flow, elevated forward P/E, and mixed quarterly margin signals justify caution on the durability of fundamentals.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-05-19 |
| NEXT REPORT DATE: | 2026-08-18 |
| CASH FLOW | Begin Period Cash Flow | $ 15.9 B |
| Operating Cash Flow | $ -1.47 B | |
| Capital Expenditures | — | |
| Change In Working Capital | $ -2.73 B | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 4.0 B | |
| End Period Cash Flow | $ 20.0 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 18.9 B | |
| Forward Revenue | $ 3.6 B | |
| COSTS | ||
| Cost Of Revenue | $ 14.3 B | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | $ 492.6 M | |
| Total Operating Expenses | $ 17.6 B | |
| PROFITABILITY | ||
| Gross Profit | $ 4.6 B | |
| EBITDA | $ 1.3 B | |
| EBIT | $ 1.3 B | |
| Operating Income | $ 1.3 B | |
| Interest Income | $ 134.9 M | |
| Interest Expense | — | |
| Net Interest Income | $ 134.9 M | |
| Income Before Tax | $ 1.8 B | |
| Tax Provision | $ 576.6 M | |
| Tax Rate | 31.481 % | |
| Net Income | $ 1.3 B | |
| Net Income From Continuing Operations | $ 1.3 B | |
| EARNINGS | ||
| EPS Estimate | $ 0.91 | |
| EPS Actual | $ 1.42 | |
| EPS Difference | $ 0.51 | |
| EPS Surprise | 56.044 % | |
| Forward EPS | $ 0.28 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 112.3 B | |
| Intangible Assets | $ 5.4 B | |
| Net Tangible Assets | $ 59.0 B | |
| Total Current Assets | $ 67.1 B | |
| Cash and Short-Term Investments | $ 45.0 B | |
| Cash | $ 11.1 B | |
| Net Receivables | $ 4.0 B | |
| Inventory | $ 2.8 B | |
| Long-Term Investments | $ 1.9 B | |
| LIABILITIES | ||
| Accounts Payable | $ 5.0 B | |
| Short-Term Debt | $ 817.5 M | |
| Total Current Liabilities | $ 41.0 B | |
| Net Debt | — | |
| Total Debt | $ 16.3 B | |
| Total Liabilities | $ 47.9 B | |
| EQUITY | ||
| Total Equity | $ 64.4 B | |
| Retained Earnings | $ 2.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 19.13 | |
| Shares Outstanding | 3.366 B | |
| Revenue Per-Share | $ 5.61 | |
| VALUATION | Market Capitalization | $ 56.9 B |
| Enterprise Value | $ 28.2 B | |
| Enterprise Multiple | 22.168 | |
| Enterprise Multiple QoQ | 72.45 % | |
| Enterprise Multiple YoY | -72.838 % | |
| Enterprise Multiple IPRWA | high: 218.433 median: 88.276 mean: 87.475 BEKE: 22.168 low: -182.291 |
|
| EV/R | 1.493 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.745 | |
| Asset To Liability | 2.345 | |
| Debt To Capital | 0.202 | |
| Debt To Assets | 0.145 | |
| Debt To Assets QoQ | -9.979 % | |
| Debt To Assets YoY | -15.301 % | |
| Debt To Assets IPRWA | high: 1.342 median: 0.299 mean: 0.291 BEKE: 0.145 low: 0.0 |
|
| Debt To Equity | 0.253 | |
| Debt To Equity QoQ | -10.552 % | |
| Debt To Equity YoY | -22.122 % | |
| Debt To Equity IPRWA | high: 4.543 median: 0.956 mean: 0.94 BEKE: 0.253 low: -2.299 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.884 | |
| Price To Book QoQ | 0.751 % | |
| Price To Book YoY | -13.664 % | |
| Price To Book IPRWA | high: 8.558 mean: 2.813 median: 2.463 BEKE: 0.884 low: -1.436 |
|
| Price To Earnings (P/E) | 11.911 | |
| Price To Earnings QoQ | -68.308 % | |
| Price To Earnings YoY | -29.832 % | |
| Price To Earnings IPRWA | high: 353.676 mean: 103.561 median: 90.79 BEKE: 11.911 low: -104.727 |
|
| PE/G Ratio | 0.057 | |
| Price To Sales (P/S) | 3.013 | |
| Price To Sales QoQ | 14.648 % | |
| Price To Sales YoY | -0.297 % | |
| Price To Sales IPRWA | high: 62.054 mean: 9.936 median: 4.066 BEKE: 3.013 low: 0.033 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 60.206 | |
| Forward PE/G | 0.288 | |
| Forward P/S | 16.059 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.028 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.165 | |
| Asset Turnover Ratio QoQ | -12.261 % | |
| Asset Turnover Ratio YoY | -6.716 % | |
| Asset Turnover Ratio IPRWA | high: 0.56 mean: 0.201 BEKE: 0.165 median: 0.13 low: 0.002 |
|
| Receivables Turnover | 4.738 | |
| Receivables Turnover Ratio QoQ | -17.628 % | |
| Receivables Turnover Ratio YoY | 5.992 % | |
| Receivables Turnover Ratio IPRWA | high: 20.641 BEKE: 4.738 mean: 3.166 median: 1.578 low: 0.281 |
|
| Inventory Turnover | 5.069 | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | high: 44.428 mean: 10.31 BEKE: 5.069 median: 1.057 low: 0.003 |
|
| Days Sales Outstanding (DSO) | 19.258 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 5.126 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -140.502 % | |
| Cash Conversion Cycle Days IPRWA | high: 167.532 mean: 31.443 median: 9.285 BEKE: 5.126 low: -50.366 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.726 | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 65.1 B | |
| Net Invested Capital | $ 66.0 B | |
| Invested Capital | $ 66.0 B | |
| Net Tangible Assets | $ 59.0 B | |
| Net Working Capital | $ 26.0 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.096 | |
| Current Ratio | 1.634 | |
| Current Ratio QoQ | 1.741 % | |
| Current Ratio YoY | 22.893 % | |
| Current Ratio IPRWA | high: 10.921 mean: 1.811 BEKE: 1.634 median: 1.384 low: 0.471 |
|
| Quick Ratio | 1.566 | |
| Quick Ratio QoQ | 1.757 % | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | high: 11.239 mean: 1.907 BEKE: 1.566 median: 1.492 low: 0.448 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 12.784 | |
| Cost Of Debt | 0.106 % | |
| Interest Coverage Ratio | 45.207 | |
| Interest Coverage Ratio QoQ | -44.995 % | |
| Interest Coverage Ratio YoY | 115.509 % | |
| Interest Coverage Ratio IPRWA | BEKE: 45.207 high: 21.15 median: 3.119 mean: 2.771 low: -38.698 |
|
| Operating Cash Flow Ratio | 0.004 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 28.932 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -3.73 % | |
| Revenue Growth | -14.858 % | |
| Revenue Growth QoQ | 296.531 % | |
| Revenue Growth YoY | -40.687 % | |
| Revenue Growth IPRWA | high: 79.044 % mean: -3.085 % median: -5.215 % BEKE: -14.858 % low: -82.107 % |
|
| Earnings Growth | 208.696 % | |
| Earnings Growth QoQ | -454.148 % | |
| Earnings Growth YoY | 3239.136 % | |
| Earnings Growth IPRWA | BEKE: 208.696 % high: 163.636 % median: -41.026 % mean: -42.805 % low: -123.529 % |
|
| MARGINS | ||
| Gross Margin | 24.137 % | |
| Gross Margin QoQ | 12.6 % | |
| Gross Margin YoY | 16.801 % | |
| Gross Margin IPRWA | high: 100.0 % mean: 41.799 % median: 38.306 % BEKE: 24.137 % low: -50.277 % |
|
| EBIT Margin | 6.737 % | |
| EBIT Margin QoQ | -35.395 % | |
| EBIT Margin YoY | 166.074 % | |
| EBIT Margin IPRWA | high: 61.604 % BEKE: 6.737 % mean: 3.111 % median: 1.995 % low: -58.12 % |
|
| Return On Sales (ROS) | 6.737 % | |
| Return On Sales QoQ | 226.88 % | |
| Return On Sales YoY | 166.074 % | |
| Return On Sales IPRWA | high: 41.436 % BEKE: 6.737 % mean: 5.985 % median: 3.287 % low: -70.996 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -1.47 B | |
| Free Cash Flow Yield | -2.584 % | |
| Free Cash Flow Yield QoQ | -215.564 % | |
| Free Cash Flow Yield YoY | -54.054 % | |
| Free Cash Flow Yield IPRWA | high: 20.933 % mean: -1.472 % median: -2.117 % BEKE: -2.584 % low: -11.83 % |
|
| Free Cash Growth | -212.827 % | |
| Free Cash Growth QoQ | -499.961 % | |
| Free Cash Growth YoY | 8.235 % | |
| Free Cash Growth IPRWA | high: 507.935 % mean: -48.9 % median: -164.903 % BEKE: -212.827 % low: -498.104 % |
|
| Free Cash To Net Income | -1.172 | |
| Cash Flow Margin | 0.841 % | |
| Cash Flow To Earnings | 0.126 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.097 % | |
| Return On Assets QoQ | 1382.432 % | |
| Return On Assets YoY | 69.029 % | |
| Return On Assets IPRWA | high: 2.387 % BEKE: 1.097 % median: 0.627 % mean: 0.456 % low: -4.297 % |
|
| Return On Capital Employed (ROCE) | 1.786 % | |
| Return On Equity (ROE) | 0.019 | |
| Return On Equity QoQ | 1377.273 % | |
| Return On Equity YoY | 56.879 % | |
| Return On Equity IPRWA | high: 0.037 BEKE: 0.019 mean: 0.013 median: 0.01 low: -0.097 |
|
| DuPont ROE | 1.92 % | |
| Return On Invested Capital (ROIC) | 1.322 % | |
| Return On Invested Capital QoQ | -48.52 % | |
| Return On Invested Capital YoY | 149.905 % | |
| Return On Invested Capital IPRWA | high: 3.815 % BEKE: 1.322 % median: 0.96 % mean: 0.581 % low: -4.039 % |
|