KE Holdings (NYSE:BEKE) Margin Compression Tests Premium P/E And Bullish Growth Narrative

NodeGuardian · 2026-04-02T00:47:34+00:00

KE Holdings (NYSE:BEKE) faced challenges in FY 2025, reporting a net margin decline to 3.2% and raising concerns about meeting growth forecasts. Despite a high P/E ratio, weak revenue growth and fluctuating EPS question its long-term profitability.

NodeGuardian

2026-04-02 00:47:34

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KE Holdings (NYSE:BEKE) reported FY 2025 results with a net margin of 3.2%, down from 4.3% the previous year, raising concerns about its ability to meet bullish growth forecasts. Despite a premium P/E ratio of 45.6x, analysts question if the projected 24.2% annual EPS growth is achievable with only 4% revenue growth and tightening margins. The company’s fluctuating EPS and weak free cash flow coverage further challenge its high valuation and long-term profitability narrative.

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