GURUFOCUS.COM » STOCK LIST » USA » NYSE » KE Holdings Inc (NYSE:BEKE) » Definitions » Gross Margin %
Switch to:

KE Holdings Gross Margin %

: 17.69% (As of Mar. 2022)
View and export this data going back to 2020. Start your Free Trial

Gross Margin % is calculated as gross profit divided by its revenue. KE Holdings's Gross Profit for the three months ended in Mar. 2022 was $350 Mil. KE Holdings's Revenue for the three months ended in Mar. 2022 was $1,978 Mil. Therefore, KE Holdings's Gross Margin % for the quarter that ended in Mar. 2022 was 17.69%.


The historical rank and industry rank for KE Holdings's Gross Margin % or its related term are showing as below:

BEKE' s Gross Margin % Range Over the Past 10 Years
Min: 18.21   Med: 23.92   Max: 24.49
Current: 18.21


During the past 5 years, the highest Gross Margin % of KE Holdings was 24.49%. The lowest was 18.21%. And the median was 23.92%.

BEKE's Gross Margin % is ranked worse than
83.3% of 1617 companies
in the Real Estate industry
Industry Median: 36.98 vs BEKE: 18.21

KE Holdings had a gross margin of 17.69% for the quarter that ended in Mar. 2022 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for KE Holdings was 0.00% per year.


KE Holdings Gross Margin % Historical Data

The historical data trend for KE Holdings's Gross Margin % 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
Gross Margin %
18.69 23.98 24.49 23.92 19.59

KE Holdings Quarterly Data
Dec17 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Gross Margin % 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 23.27 22.06 15.22 16.39 17.69

Competitive Comparison

For the Real Estate Services subindustry, KE Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

For the Real Estate industry and Real Estate sector, KE Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where KE Holdings's Gross Margin % falls into.



KE Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

KE Holdings's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=2483.7 / 12678.385222866
=(Revenue - Cost of Goods Sold) / Revenue
=(12678.385222866 - 10194.687642284) / 12678.385222866
=19.59 %

KE Holdings's Gross Margin for the quarter that ended in Mar. 2022 is calculated as


Gross Margin % (Q: Mar. 2022 )=Gross Profit (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=349.9 / 1977.739652618
=(Revenue - Cost of Goods Sold) / Revenue
=(1977.739652618 - 1627.8761466444) / 1977.739652618
=17.69 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


KE Holdings  (NYSE:BEKE) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

KE Holdings had a gross margin of 17.69% for the quarter that ended in Mar. 2022 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


KE Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of KE Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


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

From GuruFocus

Other Sources

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)