SE

SeaNYSE:SE Stock Report

Market Cap

US$187.6b

7D

4.4%

1Y

130.3%

Updated

18 Sep, 2021

Data

Company Financials +
SE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

SE Overview

Sea Limited, together with its subsidiaries, engages in the digital entertainment, e-commerce, and digital financial service businesses in Southeast Asia, Latin America, rest of Asia, and internationally.

Sea Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sea
Historical stock prices
Current Share PriceUS$339.81
52 Week HighUS$142.41
52 Week LowUS$359.84
Beta1.31
1 Month Change5.82%
3 Month Change20.29%
1 Year Change130.30%
3 Year Change2,227.47%
5 Year Changen/a
Change since IPO1,989.85%

Recent News & Updates

Sep 16

Sea Limited: It's All About Expectations And Discount Rate

Since our first valuation of the stock, the price has gone up more than 20%. At that time, we considered the company to be fairly valued in the best scenario. Our approach now is similar but instead of stretching consensus, we rely on it and check what is the implied discount rate which delivers the current share price. We have tried to assess the most appropriate discount rate and we believe there is enough evidence of a current mismatch between current valuation and the appropriate discount rate. The main risks we see are the expectations around Garena and its embedded valuation and the regulatory risks on its marketplace which might lead to new taxes in SE markets.

Sep 07

Is Sea Limited Stock A Good Buy For The Long-Term?

Sea Limited is a very high-quality growth stock that surprisingly receives less attention than Alibaba, MercadoLibre, and Amazon, even though it has outperformed all of them, hands down. We help investors understand the key metrics in a useful analytical framework to evaluate Sea Limited's growth opportunities and whether it is worthy of a long-term position. Lastly, we present our valuation argument to help our readers to decide whether they should add Sea Limited stock right now.

Sep 02
Sea (NYSE:SE) is Up 36% over the last Quarter, These Fundamentals Give Investors Hope for the Future

Sea (NYSE:SE) is Up 36% over the last Quarter, These Fundamentals Give Investors Hope for the Future

Sea Limited's (NYSE:SE) share price is up a whopping 2,421% in the last three years, a handsome return for long term holders. It's also good to see the share price up 36% over the last quarter. As with any company, we want to know if the fundamentals support this increase, and we will look at both historical performance and future estimates.

Sep 01

Sea: Years Of High Growth Left

Sea Limited stock has shot up incredibly over the last 1.5 years. Is it still worth buying now? We look at the most recent earnings of the three divisions of Sea: Garena, Shopee. and SeaMoney. If you look a bit closer, you can see very interesting things there. Shopee is getting big in Brazil, but it was also launched in Mexico, Colombia, Argentina recently and will launch in India soon. All three divisions are firing on all cylinders, and Shopee and SeaMoney are still very early in their development. I could still see Sea go up 10 times in value or more over the next decade and become a company with a market cap of more than $1T.

Aug 25

Sea Limited: Creating A Digital Ecosystem

Sea Limited is firing on all growth cylinders with their aggressive, but strategic marketing campaigns that have proven to be effective over the past few years. Paying users/active users of Garena’s self-developed global hit game "Free Fire" are only at 12%, and that number has been growing strongly over the past few quarters. Shopee is showing signs of profitability, with Shopee Taiwan and Malaysia already achieving positive adjusted EBITDA as of Q2 2021. Using a sum-of-parts valuation, we estimate the value of the business to be at least $309.

Shareholder Returns

SEUS EntertainmentUS Market
7D4.4%-1.3%-0.6%
1Y130.3%30.1%33.8%

Return vs Industry: SE exceeded the US Entertainment industry which returned 30.1% over the past year.

Return vs Market: SE exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is SE's price volatile compared to industry and market?
SE volatility
SE Beta1.31
Industry Beta1.06
Market Beta1

Stable Share Price: SE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SE's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200933,800Forrest Lihttps://www.sea.com

Sea Limited, together with its subsidiaries, engages in the digital entertainment, e-commerce, and digital financial service businesses in Southeast Asia, Latin America, rest of Asia, and internationally. It provides Garena digital entertainment platform for users to access mobile and PC online games, as well as eSports operations; and access to other entertainment content, such as livestreaming of gameplay and social features, such as user chat and online forums. The company also operates Shopee e-commerce platform, a mobile-centric marketplace that offers integrated payment and logistics infrastructure and seller services.

Sea Fundamentals Summary

How do Sea's earnings and revenue compare to its market cap?
SE fundamental statistics
Market CapUS$187.63b
Earnings (TTM)-US$1.80b
Revenue (TTM)US$6.82b

27.5x

P/S Ratio

-104.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SE income statement (TTM)
RevenueUS$6.82b
Cost of RevenueUS$4.31b
Gross ProfitUS$2.52b
ExpensesUS$4.32b
Earnings-US$1.80b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-3.57
Gross Margin36.90%
Net Profit Margin-26.38%
Debt/Equity Ratio35.6%

How did SE perform over the long term?

See historical performance and comparison

Valuation

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

52.7x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SE ($339.81) is trading above our estimate of fair value ($312.08)

Significantly Below Fair Value: SE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SE is unprofitable, so we can't compare its PE Ratio to the US 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 (52.7x) compared to the US Entertainment industry average (4.3x).


Future Growth

How is Sea forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

53.0%

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 (2%).

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 (25.7% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: SE's revenue (25.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SE is forecast to be unprofitable in 3 years.


Past Performance

How has Sea performed over the past 5 years?

-33.2%

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 33.2% 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 (10.8%).


Return on Equity

High ROE: SE has a negative Return on Equity (-50.17%), as it is currently unprofitable.


Financial Health

How is Sea's financial position?


Financial Position Analysis

Short Term Liabilities: SE's short term assets ($9.4B) exceed its short term liabilities ($5.9B).

Long Term Liabilities: SE's short term assets ($9.4B) exceed its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: SE's debt to equity ratio (35.6%) is considered satisfactory.

Reducing Debt: SE's debt to equity ratio has increased from 1.1% to 35.6% over the past 5 years.


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, due to free cash flow being positive and growing by 27.7% per year.


Dividend

What is Sea 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 recent payouts.

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

6.8yrs

Average management tenure


CEO

Forrest Li (43 yo)

12.33yrs

Tenure

Mr. Xiaodong Li, also known as Forrest, 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 Executiv...


Leadership Team

Experienced Management: SE's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: SE's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

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 13.2%.


Top Shareholders

Company Information

Sea Limited's 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$187.628b
  • Shares outstanding: 552.15m
  • Website: https://www.sea.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:13
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.