Sea (SE) AI Stock Analysis

• Market Cap: $107.42B
• Dividend Yield: N/A
• Average Volume (3M): 3.51M
• Price to Earnings (P/E): 90.7
• Beta (1Y): 1.34
• Revenue Growth: 34.12%
• EPS Growth: N/A
• Country: US
• Employees: 80,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.90
• Shares Outstanding: 546,492,100
• 10 Day Avg. Volume: 3,310,402
• 30 Day Avg. Volume: 3,513,965
• PEG Ratio: 0.73
• Price to Book (P/B): 7.29
• Price to Sales (P/S): 3.63
• P/FCF Ratio: 20.64
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 4.51
• Enterprise Value/Gross Profit: 10.02
• Enterprise Value/Ebitda: 47.20
• 1Y Price Target: $205.84
• Price Target Upside: 15.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 78 Outperform
• Price Target: $220.00 ▲(23.09% Upside)

Sea Limited's overall stock score is driven by strong financial performance and a positive earnings call, highlighting significant growth across all business segments. Technical analysis supports a bullish trend, although the high P/E ratio suggests potential overvaluation. The absence of a dividend yield indicates a focus on growth rather than income.

Positive Factors

Revenue Growth

Strong revenue growth across all segments indicates robust market demand and effective business strategies, supporting long-term expansion.

Cash Generation

Robust cash generation enhances financial flexibility, enabling strategic investments and resilience against market fluctuations.

Digital Financial Services Expansion

Significant growth in digital financial services reflects strong market penetration and potential for sustained revenue diversification.

Negative Factors

Competitive Pressures

Intense competition, especially in key markets like Brazil, could pressure margins and require strategic adjustments to maintain market share.

High Leverage

While currently manageable, moderate leverage could limit financial flexibility if market conditions worsen or interest rates rise.

Absence of Dividend

Lack of dividend payments may deter income-focused investors, potentially impacting stock attractiveness in certain market conditions.

Sea Business Overview & Revenue Model

Company Description

Sea Limited (SE) is a leading digital entertainment and e-commerce company based in Southeast Asia. The company operates primarily through three key segments: Garena, which focuses on digital gaming and esports; Shopee, an e-commerce platform facilitating online shopping; and SeaMoney, which offers digital financial services. With a strong presence in various markets, Sea aims to empower consumers and businesses through innovative technology and user-friendly platforms.

How the Company Makes Money

Sea Limited generates revenue through multiple streams. The Garena segment earns money primarily through the sale of virtual goods and in-game purchases in popular mobile games such as Free Fire. The Shopee segment generates revenue through a combination of transaction fees, advertising services, and value-added services for sellers. Additionally, SeaMoney contributes to the company's earnings by offering payment solutions and financial services, earning revenue from transaction fees and interest on loans. Strategic partnerships with game developers and brands enhance their revenue potential, while a growing user base across all segments supports increased monetization opportunities.

Sea Financial Statement Overview

Summary

Sea's financial health is strong, characterized by consistent revenue and profit growth, efficient cost management, and solid cash flow generation. The company maintains a balanced capital structure with moderate leverage and improving equity returns. While cash flow metrics are robust, further strengthening in equity proportion could enhance financial stability.

Income Statement

Sea has demonstrated robust revenue growth, with Total Revenue increasing from $16.8 billion in 2024 to $17.9 billion in TTM (Trailing-Twelve-Months), reflecting a 5.9% growth rate. The Gross Profit Margin improved to 44% in TTM, indicating strong cost management. The Net Profit Margin rose significantly to 4.9% in TTM, reflecting enhanced profitability, supported by a positive EBIT Margin of 5.8% and an EBITDA Margin of 7.9%.

Balance Sheet

The Debt-to-Equity Ratio stands at 0.46 in TTM, showing a moderate level of leverage. The Return on Equity (ROE) improved to 9.8% in TTM, signaling better returns for shareholders. The Equity Ratio is at 37.6%, which suggests a solid capital structure, although there is room for improvement in equity financing.

Cash Flow

Sea's Free Cash Flow increased from $2.96 billion in 2024 to $3.5 billion in TTM, indicating a 18.6% growth, which is a positive signal for cash generation. The Operating Cash Flow to Net Income Ratio is 4.07 in TTM, showing strong cash generation efficiency. The Free Cash Flow to Net Income Ratio is 4.00 in TTM, which signifies effective conversion of income into free cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.42B	16.82B	13.08B	12.46B	9.96B	4.39B
Gross Profit	8.73B	7.21B	5.73B	5.04B	3.82B	1.30B
EBITDA	1.85B	1.21B	908.47M	-1.02B	-1.30B	-1.18B
Net Income	1.20B	444.04M	150.92M	-1.65B	-2.05B	-1.62B
Balance Sheet
Total Assets	25.44B	22.63B	18.88B	17.00B	18.76B	10.46B
Cash, Cash Equivalents and Short-Term Investments	9.41B	8.62B	5.36B	6.89B	10.16B	6.29B
Total Debt	4.19B	4.12B	4.46B	4.49B	4.25B	2.09B
Total Liabilities	15.66B	14.15B	12.19B	11.19B	11.33B	7.04B
Stockholders Equity	9.68B	8.37B	6.59B	5.72B	7.40B	3.38B
Cash Flow
Free Cash Flow	4.44B	2.96B	1.82B	-2.03B	-598.53M	219.59M
Operating Cash Flow	4.56B	3.28B	2.08B	-1.06B	208.65M	555.87M
Investing Cash Flow	-6.11B	-5.04B	-5.80B	-2.43B	-3.77B	-886.91M
Financing Cash Flow	1.59B	1.68B	366.01M	400.26M	7.40B	3.73B

Sea Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 178.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE, the sentiment is Positive. The current price of 178.73 is below the 20-day moving average (MA) of 188.83, above the 50-day MA of 176.64, and above the 200-day MA of 145.08, indicating a neutral trend. The MACD of 0.85 indicates Positive momentum. The RSI at 47.08 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE.

Sea Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JD	79 Outperform	$56.94B	9.88	17.28%	2.71%	14.61%	32.78%
PDD	79 Outperform	$186.65B	14.65	27.06%	―	20.09%	-1.83%
SE	78 Outperform	$107.42B	90.69	14.48%	―	34.12%	―
EBAY	77 Outperform	$40.02B	20.10	45.99%	1.30%	3.05%	-10.82%
MELI	71 Outperform	$110.36B	53.76	35.94%	―	38.27%	46.21%
CPNG	62 Neutral	$59.12B	163.29	7.79%	―	18.69%	-65.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Sea Corporate Events

Sea Limited Announces Annual General Meeting for September 24, 2025

On September 2, 2025, Sea Limited announced its annual general meeting of shareholders will be held on September 24, 2025, in Singapore. The meeting will not include any proposals for shareholder approval. Shareholders and ADS holders as of September 12, 2025, are entitled to attend, but must confirm attendance by September 17, 2025, due to venue capacity constraints. This announcement underscores Sea’s commitment to maintaining transparent communication with its stakeholders and may impact shareholder engagement strategies.

Sea Limited Reports Robust Q2 2025 Growth Across All Segments

Sea Limited reported strong financial results for the second quarter of 2025, with significant growth across its three main business segments. The company achieved a total GAAP revenue of $5.3 billion, marking a 38.2% increase year-on-year, and a total net income of $414.2 million, up from $79.9 million in the same period last year. Shopee, its e-commerce platform, saw a 25% year-on-year growth in GMV, while Monee expanded its loan portfolio and maintained high asset quality. Garena’s digital entertainment segment also performed well, with a 23.2% increase in bookings. Sea Limited’s strategic focus on growth and profitability is expected to strengthen its market leadership and long-term earnings potential.