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Sea (SE)
NYSE:SE
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Sea
(NYSE:SE)
76Outperform
Positive Factors
E-commerce Growth
Shopee's growth is expected to be driven by a shift to online shopping, with users finding more options online.
Gaming Segment
Sea Ltd's new game, Free City, is gaining traction, which could positively impact its gaming segment.
Negative Factors
Macroeconomic Environment
There is limited material upside in the near-term for Sea Ltd due to a slowing macroeconomic environment.
Valuation Concerns
At current levels, Sea Ltd's valuations are not inexpensive, trading at a premium compared to key e-commerce platforms.
Sea (SE) vs. S&P 500 (SPY)
Market Cap
$81.99B
Dividend YieldN/A
Average Volume (3M)5.27M
Price to Earnings (P/E)186.5
Beta (1Y)1.53
Revenue Growth28.46%
EPS Growth185.04%
CountryUS
Employees80,700
SectorConsumer Cyclical
Sector Strength60
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.65
Shares Outstanding546,492,100
10 Day Avg. Volume3,560,612
30 Day Avg. Volume5,272,228
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)9.64
Price to Sales (P/S)0.00
P/FCF Ratio25.88
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue1.39
Enterprise Value/Gross Profit11.69
Enterprise Value/Ebitda29.51
Forecast
1Y Price Target
$154.60Price Target Upside8.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Sea Business Overview & Revenue Model
Company DescriptionSea Limited is a leading global consumer internet company headquartered in Singapore. It operates through three main business segments: digital entertainment, e-commerce, and digital financial services. Sea's digital entertainment segment is embodied by Garena, a global game developer and publisher. Shopee, its e-commerce platform, is a dominant player in Southeast Asia and Taiwan, offering a wide range of products across various categories. SeaMoney, the company's digital financial services segment, provides mobile wallet services and other financial solutions to individuals and businesses in the region.
How the Company Makes MoneySea Limited generates revenue through its three core segments. In digital entertainment, Garena earns money by selling in-game items, battle passes, and through partnerships with other game developers for publishing rights. Shopee, the e-commerce platform, makes money through transaction fees, advertising, and logistics services provided to sellers and buyers on the platform. SeaMoney, the financial services arm, earns revenue from transaction fees, merchant services, and interest from its lending activities. The company also benefits from strategic partnerships and investments that enhance its service offerings and market reach.
Sea Key Performance Indicators (KPIs)
Any
Garena Quarterly Active Users
Reflects user engagement and reach in the gaming division, indicating the popularity of games and potential for monetization through in-game purchases.
Reflects user engagement and reach in the gaming division, indicating the popularity of games and potential for monetization through in-game purchases.
Data provided by:
Main Street Data
Main Street DataSea Financial Statement Overview
Summary
Sea demonstrates substantial growth and improving profitability, with robust cash flow generation. The company shows a balanced leverage position and has improved its return on equity significantly. While profitability margins are still relatively low, the trajectory is positive. Careful management of investments and further strengthening of equity will support continued financial health and growth.Income Statement
Sea has shown strong revenue growth, with a significant increase from $13.06 billion in 2023 to $16.82 billion in 2024. The gross profit margin improved to 42.83%, indicating better cost management. Net income rose to $444 million, enhancing the net profit margin to 2.64%. EBIT and EBITDA margins also improved, suggesting operational efficiency. However, the profitability margins are still low, presenting room for improvement.85
Very Positive
Balance Sheet
The debt-to-equity ratio is 0.49, reflecting a balanced leverage. The return on equity improved markedly to 5.30%, indicating better profitability relative to equity. The equity ratio stands at 37.01%, suggesting a moderate level of financial stability. Overall, the balance sheet shows a solid financial position but highlights the need for further strengthening of equity and asset management.78
Positive
Cash Flow
Free cash flow has grown significantly, supporting robust cash flow generation. The operating cash flow to net income ratio is 7.38, indicating strong cash conversion. The free cash flow to net income ratio stands at 7.38, reflecting efficient cash management. However, the fluctuation in investing cash flows suggests a need for careful investment planning.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 16.82B | 13.06B | 12.45B | 9.96B | 4.38B | Gross Profit |
| 7.21B | 5.83B | 5.19B | 3.90B | 1.35B | EBIT |
| 662.15M | 224.78M | -1.13B | -1.58B | -1.30B | EBITDA |
| 1.20B | 908.47M | -1.02B | -1.30B | -1.18B | Net Income Common Stockholders |
| 444.32M | 150.73M | -1.67B | -2.05B | -1.62B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 8.62B | 5.36B | 6.89B | 10.16B | 6.29B | Total Assets |
| 22.63B | 18.88B | 17.00B | 18.76B | 10.46B | Total Debt |
| 4.12B | 4.46B | 4.49B | 4.25B | 2.09B | Net Debt |
| 1.72B | 1.65B | -1.54B | -4.99B | -4.07B | Total Liabilities |
| 14.15B | 12.19B | 11.19B | 11.33B | 7.04B | Stockholders Equity |
| 8.37B | 6.59B | 5.72B | 7.40B | 3.38B |
| Cash Flow | Free Cash Flow | |||
| 2.96B | 1.82B | -2.03B | -598.53M | 219.59M | Operating Cash Flow |
| 3.28B | 2.08B | -1.06B | 208.65M | 555.87M | Investing Cash Flow |
| -5.04B | -5.80B | -2.43B | -3.77B | -886.91M | Financing Cash Flow |
| 1.68B | 366.01M | 400.26M | 7.40B | 3.73B |
Sea Technical Analysis
Positive
142.45
Price Trends
128.26
Positive
123.35
Positive
107.36
Positive
Market Momentum
5.39
Negative
62.97
Neutral
74.31
Neutral
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 142.45 is above the 20-day moving average (MA) of 130.90, above the 50-day MA of 128.26, and above the 200-day MA of 107.36, indicating a bullish trend. The MACD of 5.39 indicates Negative momentum. The RSI at 62.97 is Neutral, neither overbought nor oversold. The STOCH value of 74.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE.
Sea Risk Analysis
Sea disclosed 60 risk factors in its most recent earnings report. Sea reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sea Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $31.88B | 16.53 | 36.48% | 1.58% | 2.04% | -15.61% | |
77 Outperform | $126.98B | 61.61 | 49.11% | ― | 41.92% | 81.11% | |
76 Outperform | $81.99B | 186.50 | 5.93% | ― | 28.46% | 185.04% | |
72 Outperform | $51.50B | 9.65 | 17.55% | 2.89% | 5.20% | 77.60% | |
68 Neutral | $47.21B | 188.00 | 6.06% | ― | 20.88% | -80.08% | |
61 Neutral | $6.92B | 11.84 | 3.00% | 3.95% | 2.60% | -21.94% | |
60 Neutral | $4.90B | 33.35 | -39.97% | ― | 2.18% | -32.87% |
* Consumer Cyclical Sector Average
Performance Comparison
SE
Sea
142.45
76.19
114.99%
EBAY
eBay
69.16
18.01
35.21%
MELI
Mercadolibre
2,504.61
820.70
48.74%
JD
JD
36.05
2.70
8.10%
ETSY
Etsy
47.59
-15.98
-25.14%
CPNG
Coupang
26.14
3.89
17.48%
Sea Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 15.35%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth across all business segments, with record e-commerce performance, strong digital financial services expansion, and an impressive rebound in digital entertainment. Despite some challenges related to forex fluctuations and competitive pressures, Sea Limited has shown robust profitability improvements and strategic growth initiatives, particularly in the fintech sector.Q1-2025 Updates
Positive Updates
Record E-commerce Growth
Shopee delivered a record high GMV and gross order volume in the first quarter, with a 22% year-on-year increase in GMV to $28.6 billion and a 20% increase in growth orders to $3.1 billion.
Digital Financial Services Expansion
Monee's first-quarter revenue and adjusted EBITDA grew by more than 50% year-on-year, with a loan book increase of over 75% year-on-year to $5.8 billion.
Strong Digital Entertainment Performance
Garena's bookings grew 51% year-on-year, achieving the best quarterly performance since 2021, and adjusted EBITDA increased by 57%.
Improved Profitability
Sea Limited's total adjusted EBITDA was $947 million in the first quarter of 2025, compared to $401 million in the first quarter of 2024.
Successful Rebranding
The digital financial services business was successfully rebranded from SeaMoney to Monee, signaling a new phase of growth and expanded offerings.
Negative Updates
Forex Rate Fluctuations
Potential negative impacts on Shopee's growth due to fluctuations in foreign exchange rates in some markets.
Competitive Landscape Challenges
The introduction of TikTok Shop in Brazil and competitive pressures in ASEAN markets could impact Shopee's market share and growth dynamics.
Seasonal and Regional Volatility
Potential quarterly volatility in digital entertainment bookings due to the timing of significant collaborations and cultural events like Ramadan.
Company Guidance
In the Sea Limited First Quarter 2025 Results Conference Call, the company provided guidance across its three main business segments, emphasizing strong growth and improving profitability. For e-commerce, Shopee achieved a record high GMV of $28.6 billion, reflecting a 22% year-on-year increase and a 20% growth in gross order volume. Ad revenue saw significant growth, increasing by over 50% year-on-year, while logistics costs per order were reduced by 6% in Asia and 21% in Brazil. Sea's digital financial services segment, recently rebranded to Monee, expanded its loan book by over 75% year-on-year, reaching $5.8 billion, with revenue and adjusted EBITDA both growing more than 50%. The digital entertainment segment, Garena, reported a 51% increase in bookings and a 57% rise in adjusted EBITDA year-on-year, fueled by successful campaigns, including a collaboration with NARUTO SHIPPUDEN. The company maintains a 20% full-year GMV growth guidance for Shopee and expects continued strong performance across all segments.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.