KE Holdings Inc. (2423.HK) stock analysis

In our weekly check, KE Holdings Inc. is graded B (A to F). Of 22 checks on debt, profit, cash flow and trend: 14 pass, warnings: 5, red flags: 3.

About KE Holdings Inc.

KE Holdings Inc. is a Real Estate company (Real Estate - Services) based in China, listed on HKSE as 2423.HK.

What our checks show for 2423.HK

Red flags

• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Free cash flow is negative (-1.1% of revenue): the business spends more cash than it brings in.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect only about 3.8% a year of growth in revenue.
• The net margin is only 5.4%: little room if costs rise.
• The price swings a lot: 37.1% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 50% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 7.5%.

Strengths

• Debt is low: 0.22x equity.
• The net margin rose by 6 points over 5 years, to 5.4%.
• Analysts expect earnings per share to grow about 37.6% a year over the next years.
• Analysts expect the net margin to improve by 6.4 points from today's 5.4%.
• Earnings per share grew 54.4% a year over the last 3 years.
• A large company: market value $18.1 billion.

Next earnings report: 2026-11-10

Similar companies

JLL · CSGP · CBRE · COMP · FSV · CIGI

Questions

What grade does KE Holdings Inc. (2423.HK) have?

In our weekly check, KE Holdings Inc. is graded B (A to F). Of 22 checks on debt, profit, cash flow and trend: 14 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 2423.HK stock?

This week's biggest flags for KE Holdings Inc.: Profits not backed by cash, Weak free cash flow, Heavy stock pay. In total 8 of 22 checks show a warning or a red flag.

What does KE Holdings Inc. do?

KE Holdings Inc. is a Real Estate company (Real Estate - Services) based in China, listed on HKSE as 2423.HK.

When does KE Holdings Inc. report earnings next?

The next earnings report is expected on 2026-11-10. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis