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.

Rewards

Trading at 69.3% below its fair value

Earnings are forecast to grow 59.76% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential with adequate 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.7%

SE

0.08%

US Entertainment

1.3%

US Market


1 Year Return

210.0%

SE

24.0%

US Entertainment

19.4%

US Market

Return vs Industry: SE exceeded the US Entertainment industry which returned 24% over the past year.

Return vs Market: SE exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

SEIndustryMarket
7 Day-2.7%0.08%1.3%
30 Day-0.3%4.3%2.6%
90 Day18.6%4.0%5.0%
1 Year210.0%210.0%25.0%24.0%22.0%19.4%
3 Yearn/a60.6%55.4%46.8%37.3%
5 Yearn/a104.5%91.8%66.3%48.0%

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 ($37.3) is trading below our estimate of fair value ($121.43)

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 (13.8x) compared to the US Entertainment industry average (2.6x).


Next Steps

Future Growth

How is Sea forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

59.8%

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 (27.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SE's revenue (27.3% 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 high in 3 years time (36.3%)


Next Steps

Past Performance

How has Sea performed over the past 5 years?

-49.0%

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 -49% 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 (1.1%).


Return on Equity

High ROE: SE has a negative Return on Equity (-115.27%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sea's financial position?


Financial Position Analysis

Short Term Liabilities: SE's short term assets ($3.3B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: SE's short term assets ($3.3B) exceed its long term liabilities ($770.7M).


Debt to Equity History and Analysis

Debt Level: SE's debt to equity ratio (37.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SE's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: SE has a low level of unsold assets or inventory.

Debt Coverage by Assets: SE's debt is covered by short term assets (assets are 7.1x debt).


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: SE has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

What is the CEO of Sea's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Forrest Xiaodong Li (41yo)

10.6yrs

Tenure

0

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 ...


Management Age and Tenure

5.0yrs

Average Tenure

39yo

Average Age

Experienced Management: SE's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

42yo

Average Age

Experienced Board: SE's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.3%.


Management Team

  • Nick Nash (41yo)

    Group President

    • Tenure: 5yrs
  • Forrest Xiaodong Li (41yo)

    Founder

    • Tenure: 10.6yrs
  • Gang Ye (39yo)

    Co-Founder

    • Tenure: 9.8yrs
  • David Jingye (38yo)

    Co-Founder & Group Chief of Staff

    • Tenure: 0yrs
  • Tony Tianyu (41yo)

    Group CFO & Director

    • Tenure: 1.8yrs
  • Chris Zhimin (36yo)

    Chief Executive Officer of Shopee

    • Tenure: 4.4yrs
  • Yanjun Wang (39yo)

    Group Chief Corporate Officer

    • Tenure: 5.8yrs
  • Nok Anulomsombut (41yo)

    Chief Executive Officer of Thailand

    • Tenure: 3.8yrs
  • Terry Zhao (35yo)

    President of Garena

    • Tenure: 1.1yrs
  • Howard Soh

    Director of Corporate Development and Strategy

    • Tenure: 0yrs

Board Members

  • Taizo Son (47yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • David Heng (53yo)

    Independent Director

    • Tenure: 2.2yrs
  • Archana Parekh

    Member of Advisory Board

    • Tenure: 0yrs
  • Mark Ren (43yo)

    Director

    • Tenure: 6.3yrs
  • Khoon Hua Kuok (40yo)

    Independent Director

    • Tenure: 2.2yrs
  • Forrest Xiaodong Li (41yo)

    Founder

    • Tenure: 10.6yrs
  • Gang Ye (39yo)

    Co-Founder

    • Tenure: 9.8yrs
  • Zhang Tao (46yo)

    Independent Director

    • Tenure: 2.2yrs
  • Tony Tianyu (41yo)

    Group CFO & Director

    • Tenure: 1.8yrs

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$17.047b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 01:21
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.