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KE Holdings Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

KE Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for KE Holdings's Piotroski F-Score or its related term are showing as below:

BEKE' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 4   Max: 7
Current: 4

During the past 5 years, the highest Piotroski F-Score of KE Holdings was 7. The lowest was 3. And the median was 4.


KE Holdings Piotroski F-Score Historical Data

The historical data trend for KE Holdings's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

KE Holdings Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
N/A N/A N/A 7.00 3.00

KE Holdings Quarterly Data
Dec17 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only N/A N/A N/A 3.00 4.00

Competitive Comparison

For the Real Estate Services subindustry, KE Holdings's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

KE Holdings Piotroski F-Score Distribution

For the Real Estate industry and Real Estate sector, KE Holdings's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where KE Holdings's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar22) TTM:Last Year (Mar21) TTM:
Net Income was 173.05634241245 + -273.36400105323 + -145.96297866328 + -97.662894429909 = $-344 Mil.
Cash Flow from Operations was 155.84700389105 + -179.42707123275 + 200.83604163723 + 131.56873561769 = $309 Mil.
Revenue was 3762.4169649805 + 2802.8654182736 + 2792.4137660339 + 1977.739652618 = $11,335 Mil.
Gross Profit was 830.03346303502 + 426.65783808063 + 457.70524233432 + 349.86350597358 = $2,064 Mil.
Average Total Assets from the begining of this year (Mar21)
to the end of this year (Mar22) was
(16426.574667097 + 16740.222879377 + 15820.372969038 + 15750.375237467 + 15651.640134918) / 5 = $16077.83717758 Mil.
Total Assets at the begining of this year (Mar21) was $16,427 Mil.
Long-Term Debt & Capital Lease Obligation was $678 Mil.
Total Current Assets was $9,689 Mil.
Total Current Liabilities was $4,484 Mil.
Net Income was 400.55467690917 + 10.967756144833 + 167.44559815271 + 162.61515305104 = $742 Mil.

Revenue was 2844.2243278355 + 3017.195988606 + 3466.8305476121 + 3178.8307300066 = $12,507 Mil.
Gross Profit was 925.05577835517 + 643.58940475142 + 829.48021959537 + 739.76823480625 = $3,138 Mil.
Average Total Assets from the begining of last year (Mar20)
to the end of last year (Mar21) was
(8723.100206538 + 10168.001299141 + 13357.735735471 + 15949.036747052 + 16426.574667097) / 5 = $12924.88973106 Mil.
Total Assets at the begining of last year (Mar20) was $8,723 Mil.
Long-Term Debt & Capital Lease Obligation was $677 Mil.
Total Current Assets was $13,065 Mil.
Total Current Liabilities was $5,212 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

KE Holdings's current Net Income (TTM) was -344. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

KE Holdings's current Cash Flow from Operations (TTM) was 309. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar21)
=-343.93353173397/16426.574667097
=-0.02093763

ROA (Last Year)=Net Income/Total Assets (Mar20)
=741.58318425775/8723.100206538
=0.08501372

KE Holdings's return on assets of this year was -0.02093763. KE Holdings's return on assets of last year was 0.08501372. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

KE Holdings's current Net Income (TTM) was -344. KE Holdings's current Cash Flow from Operations (TTM) was 309. ==> 309 > -344 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar21 to Mar22
=678.32140718091/16077.83717758
=0.04218984

Gearing (Last Year: Mar21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar20 to Mar21
=677.22173585833/12924.88973106
=0.05239671

KE Holdings's gearing of this year was 0.04218984. KE Holdings's gearing of last year was 0.05239671. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar22)=Total Current Assets/Total Current Liabilities
=9689.4422028181/4483.5395454402
=2.16111447

Current Ratio (Last Year: Mar21)=Total Current Assets/Total Current Liabilities
=13064.902548035/5212.0032560783
=2.50669501

KE Holdings's current ratio of this year was 2.16111447. KE Holdings's current ratio of last year was 2.50669501. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

KE Holdings's number of shares in issue this year was 1189.271. KE Holdings's number of shares in issue last year was 1197.334. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2064.2600494236/11335.435801906
=0.18210681

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3137.8936375082/12507.08159406
=0.25088936

KE Holdings's gross margin of this year was 0.18210681. KE Holdings's gross margin of last year was 0.25088936. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar21)
=11335.435801906/16426.574667097
=0.69006692

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar20)
=12507.08159406/8723.100206538
=1.4337886

KE Holdings's asset turnover of this year was 0.69006692. KE Holdings's asset turnover of last year was 1.4337886. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+1+0+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

KE Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.

KE Holdings  (NYSE:BEKE) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


KE Holdings Piotroski F-Score Related Terms

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KE Holdings Business Description

KE Holdings logo
Traded in Other Exchanges
Address
No. 2 Chuangye Road, Oriental Electronic Technology Building, Haidian District, Beijing, CHN, 100086
KE Holdings Inc is engaged in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. The company through its Beike platform reinvents how service providers and housing customers efficiently navigate and consummate housing transactions, ranging from existing and new home sales, home rentals, to home renovation, real estate financial solutions, and other services. It operates in three operating segments Existing home transaction services; New home transaction services; and Emerging and other services. The company generates maximum revenue from New home transaction services segment.

KE Holdings Headlines

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