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.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$339.81|
|52 Week High||US$142.41|
|52 Week Low||US$359.84|
|1 Month Change||5.82%|
|3 Month Change||20.29%|
|1 Year Change||130.30%|
|3 Year Change||2,227.47%|
|5 Year Change||n/a|
|Change since IPO||1,989.85%|
Recent News & Updates
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.
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.
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.
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.
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.
|SE||US Entertainment||US Market|
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.
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
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
|SE fundamental statistics|
Is SE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SE income statement (TTM)|
|Cost of Revenue||US$4.31b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-3.57|
|Net Profit Margin||-26.38%|
How did SE perform over the long term?See historical performance and comparison
Is Sea undervalued compared to its fair value and its price relative to the market?
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).
How is Sea forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
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.
How has Sea performed over the past 5 years?
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.
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.
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.
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Forrest Li (43 yo)
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...
Experienced Management: SE's management team is seasoned and experienced (6.8 years average tenure).
Experienced Board: SE's board of directors are considered experienced (6 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.2%.
Sea Limited's employee growth, exchange listings and data sources
- 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
- Sea Limited
- 1 Fusionopolis Place
- No. 17-10, Galaxis
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:13|
|End of Day Share Price||2021/09/17 00:00|
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.