| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 33 | 27.3x | 17.8x | Bottom tier | |
Growth | 54 | -14.0% | 7.1% | Around median | |
Quality | 27 | 2.1% | 4.5% | Bottom tier | |
Safety | 44 | 4.0x | 2.6x | Around median | |
Capital Return | 63 | 0.72% | 2.12% | Around median | |
Momentum | 49 | -8.3% | 2.9% | Around median | |
Sentiment | 82 | 10 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
KE Holdings operates a housing services platform that brings together existing-home and new-home transactions, home renovation and furnishing, rental management, and other emerging businesses. Revenue generation depends on brokerage and transaction services, platform fees recognized on a net basis for a portion of non-Lianjia transactions, renovation services, and the Carefree Rent product; the number of managed rental units exceeded 790 thousand by the end of FY2026 Q2. The company is transforming ACN from a unified property-listing channel into an ecosystem encompassing consulting, viewings, contracting, marketing, renovation, and leasing, while using artificial intelligence for data organization, customer matching, and agent support.
In FY2026 Q2, gross transaction value increased 6.3% year over year, while revenue declined 5.7% due to adjustments in the home renovation and furnishing business and the impact of the shift to net revenue recognition models. Existing-home revenue totaled 7.02 billion yuan, new-home revenue 8.95 billion yuan, home renovation and furnishing revenue 3.19 billion yuan, rental revenue 4.83 billion yuan, and emerging and other businesses revenue 550 million yuan. Gross margin increased 6.7 percentage points to 28.6%, GAAP operating profit rose 185.6% to 3.026 billion yuan, while GAAP net income nearly doubled to 2.624 billion yuan and adjusted net margin reached 13%.
On an annual basis, FY2025 revenue increased to 94.6 billion dollars from 93.5 billion dollars in FY2024, but gross profit declined from 22.9 billion dollars to 20.2 billion dollars, net income fell from 4.1 billion dollars to 3.0 billion dollars, and earnings per share dropped from 1.15 to 0.86. This shows that the improvement in FY2026 Q2 margins followed a fiscal year marked by limited revenue growth and declining profitability, making the sustainability of cost reductions and improvements in the business mix a central focus of the analysis.
The average analyst price target is 23.05 dollars, within a range of 21 to 24.4 dollars, and the stock carries a consensus “Buy” rating following a published upgrade from “Hold” to “Buy” on August 24, 2026. The average target and the highest target are above the 52-week range high of 20.98 dollars, compared with a low of 13.81 dollars, reflecting analyst expectations for continued improvement in profitability. No valid price-to-earnings ratio is available in the data, so the valuation assessment is based on the target range and the expansion of FY2026 Q2 margins, balanced against the decline in FY2025 net income and real estate market and collection risks.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Earnings per share exceeded the average analyst estimate by 35%, with GAAP net income increasing 100.8% to 2.624 billion yuan. Gross margin increased 6.7 percentage points to 28.6%, while GAAP operating expenses declined 14.1% to 3.989 billion yuan. Lower store costs and an improved mix of platform, renovation, and rental services helped adjusted net margin reach 13%, the highest level in three years according to management.
Gross transaction value for existing homes totaled 629.89 billion yuan in FY2026 Q2, up 8% year over year and 17.9% quarter over quarter. Revenue increased 4.5% year over year to 7.02 billion yuan, while transaction volume grew nearly 25% and average transactions per active connected store increased 26%. Contribution margin improved to 46.1%, supported by lower fixed labor costs and a greater share of higher-margin non-Lianjia platform services revenue.
The business's revenue declined 30.1% year over year to 3.19 billion yuan in FY2026 Q2 after the company exited cities, stores, and customer acquisition channels with weak unit economics. Lower new-home deliveries also pressured demand, while competitors used price reductions and high channel incentives. In contrast, centralized procurement and cost management increased contribution margin by 7.5 percentage points to 39.6%, and management said the broad-based contraction had been largely completed during FY2026.
Automated analysis for informational purposes only — not investment advice.
The transition to a lighter product that recognizes revenue on a net basis led rental revenue to decline 14.8% year over year to 4.83 billion yuan in FY2026 Q2. At the same time, managed units exceeded 790 thousand, representing growth of approximately 34%, and products recognized on a net basis came to represent more than half of the portfolio. Contribution margin increased to 15.3%, and the landlord renewal rate reached 74% and the tenant renewal rate reached 56%, but management linked the sustainability of the improvement to reducing reletting, labor, and channel costs.
KE Holdings uses artificial intelligence to organize customer data, compare new-home projects through a dynamic knowledge base, allocate tasks, and support the customer manager, whose income is not tied to closing a transaction. Between May and July 2026, this role handled more than 50 thousand opportunities and achieved an opportunity-to-viewing conversion rate of 7.4% versus 5% for the broader market. The company plans to invest in deep service, deep data, and the platform ecosystem, while acknowledging that the ultimate form of artificial intelligence and its associated management structure are still being tested.
Operating cash flow totaled 6.61 billion yuan in FY2026 Q2, and the broad cash balance excluding customer deposits stood at approximately 67.3 billion yuan. The company spent approximately 250 million dollars on share repurchases during the quarter and approximately 460 million dollars during the first half, equivalent to about 2.4% of the shares outstanding at the end of FY2025. From September 2022 through the end of FY2026 Q2, total purchases reached approximately 2.99 billion dollars, representing approximately 14.8% of the share count before the program was launched.
