Seek Limited (SEK) AI Stock Analysis

• Market Cap: $8.67B
• Dividend Yield: 1.97%
• Average Volume (3M): 859.45K
• Price to Earnings (P/E): 1337.9
• Beta (1Y): 1.37
• Revenue Growth: -14.38%
• EPS Growth: -92.03%
• Country: AU
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 93
• Industry: Staffing & Employment Services
• EPS (TTM): 0.22
• Shares Outstanding: 356,820,200
• 10 Day Avg. Volume: 705,077
• 30 Day Avg. Volume: 859,452
• PEG Ratio: 0.17
• Price to Book (P/B): 5.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $27.65
• Price Target Upside: 13.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 54 Neutral
• Price Target: AU$23.00 ▼(-5.54%Downside)

Seek Limited faces significant financial challenges with negative net income and high leverage, impacting its financial health. However, technical analysis indicates positive momentum, although caution is advised due to potential overbought conditions. The high P/E ratio suggests overvaluation, presenting risks unless future performance improves. Overall, the company's current financial and market position warrants a cautious outlook with a score reflecting these mixed indicators.

Positive Factors

Cash Conversion

Cash conversion was strong at 93%, showing effective financial management.

Strategic Goals

FY28 strategic goals were retained despite the sale of LatAm assets and the soft FY25 outlook.

Negative Factors

Earnings Decline

Asia earnings were significantly down by 50% compared to expectations of 39%, indicating a notable underperformance.

Earnings Performance

FY24 results were below guidance, mostly driven by Asia, reflecting weaker performance in that region.

Market Concerns

Cyclical and structural concerns noted in Singapore/Philippines with share shifts towards free portals given the challenging environment.

Seek Limited Business Overview & Revenue Model

Company Description

Seek Limited (SEK) is a leading online employment marketplace operating primarily in Australia and New Zealand, with a growing presence in Asia and Latin America. The company provides a platform that connects job seekers with employers, offering a range of services including job listings, candidate management tools, and talent insights. In addition to its core employment services, Seek Limited also has investments in education and training businesses, enhancing its ability to support job seekers in their career development.

How the Company Makes Money

Seek Limited generates revenue primarily through fees charged to employers for job advertisements and access to its database of candidate resumes. The company also offers premium services such as enhanced job listings and employer branding solutions, which provide additional visibility and customization options for employers. Additionally, Seek earns income through its investments in online education and training services, leveraging synergies between employment and skills development. Partnerships with educational institutions and strategic acquisitions further bolster Seek's revenue streams, allowing the company to expand its service offerings and market reach.

Seek Limited Financial Statement Overview

Summary

Seek Limited's financial position reflects challenges in maintaining profitability and revenue growth, with negative net income in 2024 highlighting operational struggles. Despite stable equity and positive free cash flow, high leverage and inconsistent cash flow trends present potential financial risks. The company needs to address its revenue and profitability issues to improve its financial health.

Income Statement

The company experienced significant revenue volatility with a notable decline in total revenue from 2023 to 2024. Gross profit margin remains high, but net income turned negative in 2024, indicating potential profitability issues. The absence of EBIT in 2024 further highlights operational challenges. Historical revenue growth was inconsistent, reflecting fluctuating market conditions.

Balance Sheet

Seek Limited maintains a stable equity base, with stockholders' equity increasing over the years despite fluctuating revenues. However, the debt-to-equity ratio remains relatively high, posing potential leverage risks. The company's equity ratio is stable, showing a balanced asset management approach.

Cash Flow

The cash flow statement reveals a decline in operating cash flow from 2023 to 2024, although free cash flow remains positive, indicating some resilience. The free cash flow to net income ratio is distorted due to negative net income in 2024, suggesting cash flow management challenges.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	536.20M	1.08B	1.23B	1.12B	760.30M	650.60M
Gross Profit	309.40M	1.08B	666.90M	1.11B	755.90M	411.60M
EBITDA	415.20M	163.10M	478.30M	479.60M	266.10M	162.60M
Net Income	143.50M	-100.90M	1.02B	168.80M	752.20M	-113.10M
Balance Sheet
Total Assets	4.97B	4.75B	5.23B	4.71B	4.60B	4.33B
Cash, Cash Equivalents and Short-Term Investments	205.00M	199.60M	251.60M	325.20M	491.90M	648.30M
Total Debt	1.42B	1.41B	1.50B	1.57B	1.31B	2.00B
Total Liabilities	2.21B	2.17B	2.55B	2.82B	2.68B	2.95B
Stockholders Equity	2.77B	2.58B	2.68B	1.81B	1.83B	1.07B
Cash Flow
Free Cash Flow	140.20M	159.80M	176.30M	263.70M	209.60M	207.20M
Operating Cash Flow	141.40M	328.80M	365.70M	396.60M	347.50M	300.00M
Investing Cash Flow	-82.30M	-128.40M	-214.50M	-572.70M	108.10M	-256.60M
Financing Cash Flow	-295.60M	-247.40M	-271.10M	-2.30M	-522.60M	192.20M

Seek Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SEK, the sentiment is Positive. The current price of 24.35 is above the 20-day moving average (MA) of 23.97, above the 50-day MA of 22.74, and above the 200-day MA of 23.41, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 60.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SEK.

Seek Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DHG	68 Neutral	AU$2.76B	51.29	4.88%	0.92%	12.43%	47.92%
ABB	66 Neutral	AU$1.12B	39.38	5.66%	0.82%	33.62%	4.97%
REA	63 Neutral	AU$31.01B	50.25	37.91%	0.94%	20.28%	118.95%
Sector *	61 Neutral	$41.22B	-1.26	-14.49%	3.95%	2.29%	-73.14%
SEK	54 Neutral	$8.67B	1,337.91	1.71%	1.97%	-14.38%	-92.03%
AD1	46 Neutral	AU$6.59M	―	-245.01%	―	-17.50%	66.33%

Seek Limited Corporate Events

SEEK Limited Announces Director’s Interest Update

SEEK Limited announced a change in the director’s interest notice for Graham Goldsmith, with no change in his overall holding of SEEK shares. This update reflects an off-market transfer, maintaining his indirect interest in 54,500 ordinary shares, suggesting stability in the company’s leadership and shareholding structure.

The most recent analyst rating on (AU:SEK) stock is a Buy with a A$31.00 price target. To see the full list of analyst forecasts on Seek Limited stock, see the AU:SEK Stock Forecast page.

SEEK Limited Releases Investor Day Presentation

SEEK Limited has released its Investor Day Presentation for May 21, 2025, to the market, as per the company’s compliance with listing rules. This release is part of SEEK’s ongoing efforts to maintain transparency with investors and stakeholders, potentially impacting its market perception and stakeholder confidence.

The most recent analyst rating on (AU:SEK) stock is a Buy with a A$31.00 price target. To see the full list of analyst forecasts on Seek Limited stock, see the AU:SEK Stock Forecast page.

SEEK Limited Announces Director’s Interest Change

SEEK Limited has announced a change in the director’s interest for Michael Wachtel, as detailed in the Appendix 3Y submitted to the Australian Securities Exchange. This change involves the acquisition of additional indirect interests in SEEK securities, specifically 500 ordinary shares through Citiwing Pty Ltd and 1,500 ordinary shares through Fresnaye Nominees Pty Ltd. This update reflects a strategic adjustment in the director’s investment portfolio, potentially indicating confidence in the company’s future performance.

Seek Limited Announces Cessation of Certain Securities

Seek Limited announced the cessation of certain securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could influence stakeholder perceptions regarding the company’s operational and financial strategies.