NYSE:SE

Stock Analysis Report

Executive Summary

Sea Limited engages in the digital entertainment, e-commerce, and digital financial service businesses in Taiwan, Thailand, Vietnam, Indonesia, and internationally.


Snowflake Analysis

Exceptional growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Sea's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

SE

3.9%

US Entertainment

9.4%

US Market


1 Year Return

94.1%

SE

-3.8%

US Entertainment

-6.8%

US Market

Return vs Industry: SE exceeded the US Entertainment industry which returned -2.1% over the past year.

Return vs Market: SE exceeded the US Market which returned -8.1% over the past year.


Shareholder returns

SEIndustryMarket
7 Day2.0%3.9%9.4%
30 Day-10.3%-1.5%-3.9%
90 Day14.8%-11.1%-16.5%
1 Year94.1%94.1%-3.2%-3.8%-4.8%-6.8%
3 Yearn/a33.5%29.2%23.4%15.2%
5 Yearn/a64.4%54.5%41.3%25.7%

Price Volatility Vs. Market

How volatile is Sea's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sea undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SE ($45.45) is trading below our estimate of fair value ($134.38)

Significantly Below Fair Value: SE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SE is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: SE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SE is overvalued based on its PB Ratio (18x) compared to the US Entertainment industry average (2x).


Next Steps

Future Growth

How is Sea forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

59.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: SE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SE's is expected to become profitable in the next 3 years.

Revenue vs Market: SE's revenue (26.3% per year) is forecast to grow faster than the US market (6.9% per year).

High Growth Revenue: SE's revenue (26.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SE's Return on Equity is forecast to be very high in 3 years time (47.1%).


Next Steps

Past Performance

How has Sea performed over the past 5 years?

-46.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SE is currently unprofitable.

Growing Profit Margin: SE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SE is unprofitable, and losses have increased over the past 5 years at a rate of -46.3% per year.

Accelerating Growth: Unable to compare SE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SE is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (10.3%).


Return on Equity

High ROE: SE has a negative Return on Equity (-124.31%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sea's financial position?


Financial Position Analysis

Short Term Liabilities: SE's short term assets ($4.4B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: SE's short term assets ($4.4B) exceed its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: SE's debt to equity ratio (118.3%) is considered high.

Reducing Debt: SE had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SE is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -22.4% per year.


Next Steps

Dividend

What is Sea's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Forrest Xiaodong Li (41yo)

10.92s

Tenure

Mr. Forrest Xiaodong Li founded Garena Online Private Limited in 2009 and serves as its Group Chief Executive Officer. Mr. Li founded Sea Limited in May 2009 and has been its Chief Executive Officer and Ch ...


Leadership Team

NamePositionTenureCompensationOwnership
Forrest Xiaodong Li
Founder10.92yrsno data9.93% $2.1b
Nicholas Nash
Group President5.33yrsno datano data
Gang Ye
Co-Founder10.08yrsno data5.63% $1.2b
Chen Jingye
Co-Founder & Group Chief of Staffno datano data1.77% $373.0m
Hou Tianyu
Group CFO & Director2.17yrsno datano data
Yanjun Wang
Group Chief Corporate Officer6.08yrsno datano data
Feng Zhao
President of Garena1.42yrsno datano data
Feng Zhimin
Chief Executive Officer of Shopee4.75yrsno datano data
Maneerut Anulomsombut
Chief Executive Officer of Thailand4.08yrsno datano data
Howard Soh
Director of Corporate Development and Strategyno datano datano data

5.3yrs

Average Tenure

39yo

Average Age

Experienced Management: SE's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Forrest Xiaodong Li
Founder10.92yrsno data9.93% $2.1b
Gang Ye
Co-Founder10.08yrsno data5.63% $1.2b
Hou Tianyu
Group CFO & Director2.17yrsno datano data
Taizo Son
Member of Advisory Boardno datano datano data
Chen Seng Heng
Independent Director2.5yrsno datano data
Archana Parekh
Member of Advisory Boardno datano datano data
Yuxin Ren
Director6.58yrsno datano data
Khoon Hua Kuok
Independent Director2.5yrsno data0.0022% $454.8k
Zhang Tao
Independent Director2.5yrsno datano data

2.5yrs

Average Tenure

42yo

Average Age

Experienced Board: SE's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29%.


Top Shareholders

Company Information

Sea Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sea Limited
  • Ticker: SE
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: US$21.054b
  • Shares outstanding: 463.24m
  • Website: https://www.seagroup.com

Number of Employees


Location

  • Sea Limited
  • 1 Fusionopolis Place
  • No. 17-10, Galaxis
  • Singapore
  • 138522
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SENYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDOct 2017

Biography

Sea Limited engages in the digital entertainment, e-commerce, and digital financial service businesses in Taiwan, Thailand, Vietnam, Indonesia, and internationally. It provides Garena digital entertainment platform for users to access mobile and PC online games, and eSports operations; and access to other entertainment content, such as live streaming of online gameplay and social features. The company also operates Shopee e-commerce platform, a mobile-centric marketplace that offers integrated payment and logistics infrastructure and seller services. In addition, it offers digital financial services to individuals and businesses, including e-wallet and payment services through the AirPay mobile app and AirPay counter applications on mobile phones or computers; and payment processing services for Shopee. The company was formerly known as Garena Interactive Holding Limited and changed its name to Sea Limited in April 2017. Sea Limited was founded in 2009 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 04:22
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.