Seek Limited (AU:SEK)
ASX:SEK
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Seek Limited
(Sydney:SEK)
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Rating:63Neutral
Price Target:
AU$13.00
▼(-29.00% Downside)
Action:Reiterated
Date:03/26/26
The score is driven primarily by improving financial performance and a constructive earnings call (profitability and EBITDA growth, stronger balance sheet leverage, and supportive guidance). Offsetting these positives, technicals are notably weak with the stock trading below all key moving averages and negative momentum indicators. Valuation is mixed: a solid dividend yield helps, but the negative P/E reduces confidence in traditional valuation signals.
Positive Factors
Revenue & Profitability
Consistent double‑digit top‑line growth and material EBITDA expansion show durable operating leverage. A rebound to positive net margins and rising adjusted profit supports sustained internal funding for product investment, dividends and incremental cash generation across cycles.
Negative Factors
Zhaopin Impairment
A substantial non‑cash write‑down reduces recorded asset value and highlights downside risk in equity investments. Such impairments introduce earnings volatility, can constrain future reported returns from that stake, and complicate capital allocation decisions for the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profitability
Consistent double‑digit top‑line growth and material EBITDA expansion show durable operating leverage. A rebound to positive net margins and rising adjusted profit supports sustained internal funding for product investment, dividends and incremental cash generation across cycles.
Read all positive factors
Seek Limited (SEK) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$4.75B
Dividend Yield1.95%
Average Volume (3M)806.52K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth17.97%
EPS Growth-2373.63%
CountryAU
Employees10,000
SectorCommunication Services
Sector Strength97
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-0.41
Shares Outstanding357,220,180
10 Day Avg. Volume982,204
30 Day Avg. Volume806,518
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)3.18
Price to Sales (P/S)7.82
P/FCF Ratio42.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$20.58Price Target Upside12.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.55
Revenue Forecast (FY)AU$1.20B
Seek Limited Business Overview & Revenue Model
Company Description
SEEK Limited, an Australian-headquartered company, is a leading global operator of online employment marketplaces. Through its diverse subsidiaries, the company maintains an extensive presence across various international markets, including Austra...
How the Company Makes Money
Seek Limited primarily makes money by charging employers and recruiters to advertise job vacancies and access tools that help them find and hire candidates on its employment marketplaces. Key revenue streams typically include: (1) Job advertising ...
Seek Limited Earnings Call Summary
Earnings Call Date:Feb 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operational and financial results: double-digit revenue growth, material EBITDA and adjusted profit expansion, a record dividend, improved leverage and clear evidence that proprietary data plus AI investments are translating into better matching, higher candidate engagement (1.5x), placement-share gains and durable yield expansion. Key negatives were a large non-cash Zhaopin impairment, some volume softness (particularly paid volumes in parts of APAC), modest private fund performance, and increased investment-related accounting impacts (higher CapEx, D&A and share-based payments). On balance the positive operational momentum, product-driven yield gains, completed freemium rollout in Asia and tightened guidance outweigh the listed challenges, though management flagged execution and measurement risks that they are actively managing.Positive Updates
Revenue Growth and Scale
Reported revenue of $601 million, up 12% year-on-year (11% excluding Sidekicker), driven by product mix and regional growth.
Negative Updates
Large Non-Cash Zhaopin Impairment
A $356 million non-cash impairment against the Zhaopin investment was recorded (booked across continuing and discontinued ops), reducing the accounted value from $529 million in June to $182 million in this period.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Scale
Reported revenue of $601 million, up 12% year-on-year (11% excluding Sidekicker), driven by product mix and regional growth.
Read all positive updates
Company Guidance
Management said it had tightened FY26 guidance and now expects revenue and EBITDA to land in the top half of the original guidance range; they reiterated medium‑term targets of high‑single‑digit yield growth and total cost growth contained to mid‑to‑high single digits, with net leverage targeted below 2.5x (net leverage now 2.0x, down from 2.3x). Near‑term assumptions include Australian volumes broadly flat into H2, continued investment in AI (H1 OpEx +7%, CapEx +24%) while delivering operating leverage (H1 revenue $601m, +12% y/y; EBITDA +19%; adjusted profit $104m, +35%), and the Board approved a record dividend of $0.27 per share (up 13%). Management also flagged a A$356m non‑cash impairment to Zhaopin (carrying value reduced from A$529m to A$182m) and reminded investors the SEEK Growth Fund’s liquidity window opens in 2026 with a 12–24 month fulfilment expectation.Seek Limited Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
68
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.10B | 1.08B | 1.23B | 1.12B | 760.30M |
| Gross Profit | 550.90M | 1.10B | 541.70M | 1.22B | 640.40M | 397.00M |
| EBITDA | 456.10M | 537.30M | 163.10M | 510.10M | 479.60M | 266.10M |
| Net Income | -148.20M | 245.20M | -100.90M | 1.05B | 168.80M | 752.20M |
Balance Sheet | ||||||
| Total Assets | 4.33B | 4.77B | 4.75B | 5.23B | 4.71B | 4.60B |
| Cash, Cash Equivalents and Short-Term Investments | 153.90M | 150.50M | 199.60M | 251.60M | 325.20M | 491.90M |
| Total Debt | 1.43B | 1.26B | 1.41B | 1.50B | 1.57B | 1.31B |
| Total Liabilities | 1.95B | 2.07B | 2.17B | 2.55B | 2.82B | 2.68B |
| Stockholders Equity | 2.38B | 2.70B | 2.58B | 2.68B | 1.81B | 1.83B |
Cash Flow | ||||||
| Free Cash Flow | 473.50M | 200.00M | 159.80M | 176.30M | 263.70M | 209.60M |
| Operating Cash Flow | 486.00M | 330.00M | 328.80M | 365.70M | 396.60M | 347.50M |
| Investing Cash Flow | -252.40M | -77.00M | -128.40M | -164.50M | -572.70M | 109.10M |
| Financing Cash Flow | -305.70M | -310.00M | -247.40M | -271.10M | -2.30M | -522.60M |
Seek Limited Technical Analysis
Neutral
18.31
Price Trends
13.71
Negative
14.93
Negative
20.08
Negative
Market Momentum
0.05
Negative
53.14
Neutral
72.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SEK, the sentiment is Neutral. The current price of 18.31 is above the 20-day moving average (MA) of 13.02, above the 50-day MA of 13.71, and below the 200-day MA of 20.08, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 72.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SEK.
Seek Limited Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | AU$4.75B | -31.91 | -5.83% | 1.95% | 17.97% | -2373.63% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | AU$54.11M | 24.99 | 9.18% | ― | 4.34% | ― | |
51 Neutral | AU$76.61M | -8.94 | -6.36% | ― | -19.61% | -81.96% | |
50 Neutral | AU$21.74M | -7.16 | -23.03% | ― | ― | -249.05% | |
46 Neutral | AU$102.72M | -3.02 | -550.33% | ― | 14.49% | -66.27% | |
40 Underperform | AU$5.06M | -3.14 | -247.24% | ― | -0.17% | -38.60% |
* Communication Services Sector Average
AU:SEK
Seek Limited
13.63
-9.74
-41.67%
AU:FLN
Freelancer
0.12
-0.09
-42.86%
AU:FMR
Applyflow Limited
0.33
0.03
10.00%
AU:ART
Airtasker Ltd
0.22
-0.05
-18.52%
AU:HMI
Hiremii Ltd.
0.02
-0.02
-50.00%
AU:PPE
Peoplein Limited
0.71
0.09
14.52%
Seek Limited Corporate Events
Seek Director Rachael Powell Increases Indirect Stake via Self-Managed Super Fund
May 28, 2026
Seek Limited has reported a change in director Rachael Powell’s interests in the company’s securities, following her acquisition of additional ordinary shares. The transaction was made through the Powell Self Managed Super Fund, in whi...
BlackRock Ceases to Be Substantial Holder in Seek Limited
May 3, 2026
BlackRock Group has lodged a notice that it has ceased to be a substantial holder in Seek Limited, in accordance with disclosure requirements under the Corporations Act 2001. The change, formally recorded in early May 2026 and signed by an authori...
Seek Issues New Unquoted Equity Under Employee Incentive Plans
Apr 16, 2026
Seek Limited has issued a small tranche of unquoted equity securities under its employee incentive schemes, including share rights, restricted rights and performance rights that are not intended to be quoted on the ASX. The move underscores the co...
Seek Issues 10,127 New Shares on Conversion of Unquoted Securities
Apr 16, 2026
Seek Limited has notified the market of the issue of 10,127 new fully paid ordinary shares following the conversion or exercise of previously unquoted securities. The additional shares, recorded under ASX code SEK and dated 12 January 2026, reflec...
Seek Discloses Lapse of Employee Equity Rights, Trimming Potential Dilution
Apr 16, 2026
Seek Limited has disclosed the lapse of several categories of employee equity incentives, including options, share rights, restricted rights, performance rights and recognition share rights, after the conditions attached to these awards were not s...
Seek Discloses Director Share Acquisition in Routine ASX Filing
Mar 17, 2026
Seek Limited has notified the Australian Securities Exchange of a change in director interests following the acquisition of company shares by board member Leigh Jasper. The disclosure, lodged via an Appendix 3Y and authorised by the company secret...
Seek Director Jamaludin Ibrahim Increases Indirect Shareholding
Mar 17, 2026
Seek Limited has disclosed a change in director Jamaludin Ibrahim’s indirect interests in the company, following his acquisition of 2,200 ordinary shares on 10 March 2026 via BNP Paribas Nominees as registered holder. The update, lodged with...
Seek Dropped from S&P/ASX 50 in March Index Rebalance
Mar 6, 2026
SP Dow Jones Indices has announced its March 2026 quarterly rebalance of the SP/ASX indices, with notable changes including Northern Star Resources entering the SP/ASX 20 and Santos being removed. Light Wonder and PLS Group will join the SP/ASX 5...
SEEK confirms departure of director Graham Goldsmith with no shareholdings reported
Mar 6, 2026
SEEK Limited has notified the Australian Securities Exchange that director Graham Goldsmith ceased to be a director of the company on 1 March 2026, and has lodged a Final Director’s Interest Notice reflecting that he holds no relevant securi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.