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Sea
(NYSE:SE)
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Rating:73Outperform
Price Target:
$92.00
▲(0.73% Upside)
Action:Upgraded
Date:05/13/26
The score is driven primarily by strong financial execution (profitability and free-cash-flow recovery with improving leverage) and a generally positive earnings outlook for 2026 growth, partially offset by high valuation and a longer-term technical downtrend (below 100/200-day averages).
Positive Factors
Robust free cash flow generation
Sea’s recent multi‑year recovery produced durable cash generation: operating cash flow rose to ~$5.0B and FCF to ~$4.5B in 2025. Such persistent FCF supports reinvestment, buybacks and deleveraging, improving financial optionality versus pre‑2023 loss years.
Negative Factors
Sizable remaining debt load
Leverage has materially improved, but ~$3.3B of debt leaves Sea exposed to macro shocks and rate moves. During a downturn or slower revenue growth, servicing and refinancing needs could constrain investment flexibility and pressure margins despite stronger equity capitalization.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust free cash flow generation
Sea’s recent multi‑year recovery produced durable cash generation: operating cash flow rose to ~$5.0B and FCF to ~$4.5B in 2025. Such persistent FCF supports reinvestment, buybacks and deleveraging, improving financial optionality versus pre‑2023 loss years.
Read all positive factors
Sea Key Performance Indicators (KPIs)
Any
Garena Quarterly Active Users
Number of active users on Garena’s gaming platform each quarter, indicating engagement levels and the potential for game-related sales and advertising revenue. User trends are closely tied to hit titles and retention efforts, so declines can warn of weakening monetization ahead.
Number of active users on Garena’s gaming platform each quarter, indicating engagement levels and the potential for game-related sales and advertising revenue. User trends are closely tied to hit titles and retention efforts, so declines can warn of weakening monetization ahead.
Data provided by:
The Fly
The FlySea (SE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.94B
Dividend YieldN/A
Average Volume (3M)4.58M
Price to Earnings (P/E)34.7
Beta (1Y)1.57
Revenue Growth40.54%
EPS Growth78.98%
CountryUS
Employees80,700
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)2.66
Shares Outstanding565,506,350
10 Day Avg. Volume3,609,230
30 Day Avg. Volume4,579,430
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)6.06
Price to Sales (P/S)3.31
P/FCF Ratio16.82
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue2.31
Enterprise Value/Gross Profit5.17
Enterprise Value/Ebitda20.54
Forecast
1Y Price Target
$143.64Price Target Upside57.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)3.53
Revenue Forecast (FY)$30.39B
Sea Business Overview & Revenue Model
Company Description
Operating across Southeast Asia, Latin America, other parts of Asia, and various international markets, Sea Limited and its group of companies specialize in three core areas: digital entertainment, e-commerce, and digital financial services. Under...
How the Company Makes Money
Sea makes money through three primary segments. (1) Digital Entertainment (Garena): revenue is generated mainly from sales of digital content and services within its games (e.g., in-game items and other virtual goods) and, to a lesser extent, from...
Sea Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call conveyed robust top-line growth and strong operational momentum across all three verticals—Shopee (GMV and monetization), Money (rapid loan-book expansion with stable asset quality), and Garena (record bookings and high engagement). Management emphasized AI-driven efficiency gains and continued invest-to-scale initiatives (fulfillment, VIP, content) that are already improving unit economics. The principal negatives were a sharp YoY decline in Shopee adjusted EBITDA driven by deliberate investments, rising tax and nonoperating headwinds, some margin uncertainty in fintech, and potential cost pressures from higher fuel prices. Overall, the positives (strong revenue/GMV growth, improving monetization, high-adjusted EBITDA, healthy loan metrics and gaming momentum) outweigh the lowlights, though near-term margin impacts from investments are notable.Positive Updates
Strong Overall Revenue Growth
Total GAAP revenue of $7.1B in Q1 2026, up 47% year-on-year, driven primarily by Shopee and Money.
Negative Updates
Shopee Adjusted EBITDA Decline
Shopee adjusted EBITDA fell to $223M in Q1 2026 from $464M in Q1 2025 (≈52% decline year-on-year), reflecting increased investments in delivery, fulfillment, VIP, user acquisition and higher amortization.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Overall Revenue Growth
Total GAAP revenue of $7.1B in Q1 2026, up 47% year-on-year, driven primarily by Shopee and Money.
Read all positive updates
Company Guidance
Sea guided that Shopee is on track to grow 2026 annual GMV by around 25% year‑on‑year and to deliver full‑year Shopee adjusted EBITDA no lower than 2025 in absolute dollars, while the company overall expects to continue improving adjusted EBITDA year‑on‑year as it leans into growth investments; management also reiterated a medium‑term target of roughly 2–3% e‑commerce adjusted‑EBITDA margin. To frame that guidance, Q1 metrics included consolidated revenue of $7.1B (+47% YoY) and consolidated adjusted EBITDA of $1.0B (+9% YoY); Shopee Q1 GMV $37.3B (+30%), gross orders 4.0B (+29%) and Shopee adjusted EBITDA $223M; Money Q1 revenue $1.2B (+58%), adjusted EBITDA $275M and a loan book of $9.9B (+71%) with 90‑day NPLs at 1.1%; and Garena Q1 bookings $931M (+20%) with adjusted EBITDA $574M—metrics management cited as the basis for its 2026 outlook.Sea Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.94B | 16.82B | 13.06B | 12.45B | 9.96B |
| Gross Profit | 10.24B | 7.21B | 5.83B | 5.19B | 3.90B |
| EBITDA | 2.67B | 1.20B | 783.50M | -704.22M | -1.29B |
| Net Income | 1.58B | 444.32M | 150.73M | -1.65B | -2.05B |
Balance Sheet | |||||
| Total Assets | 29.37B | 22.63B | 18.88B | 17.00B | 18.76B |
| Cash, Cash Equivalents and Short-Term Investments | 12.79B | 8.62B | 5.36B | 6.89B | 10.16B |
| Total Debt | 3.33B | 4.12B | 4.46B | 4.49B | 4.25B |
| Total Liabilities | 16.72B | 14.15B | 12.19B | 11.19B | 11.33B |
| Stockholders Equity | 12.53B | 8.37B | 6.59B | 5.72B | 7.40B |
Cash Flow | |||||
| Free Cash Flow | 4.51B | 2.96B | 1.82B | -2.03B | -598.53M |
| Operating Cash Flow | 5.03B | 3.28B | 2.08B | -1.06B | 208.65M |
| Investing Cash Flow | -4.43B | -5.04B | -5.80B | -2.43B | -3.77B |
| Financing Cash Flow | 1.64B | 1.68B | 366.01M | 400.26M | 7.40B |
Sea Technical Analysis
Positive
91.33
Price Trends
88.29
Positive
91.25
Positive
120.54
Negative
Market Momentum
0.64
Negative
53.85
Neutral
62.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE, the sentiment is Positive. The current price of 91.33 is above the 20-day moving average (MA) of 88.85, above the 50-day MA of 88.29, and below the 200-day MA of 120.54, indicating a neutral trend. The MACD of 0.64 indicates Negative momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 62.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE.
Sea Risk Analysis
Sea disclosed 60 risk factors in its most recent earnings report. Sea reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sea Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $108.96B | 7.49 | 24.04% | ― | 11.69% | -1.85% | |
73 Outperform | $55.94B | 34.68 | 14.24% | ― | 40.54% | 78.98% | |
71 Outperform | $47.89B | 24.62 | 44.12% | 1.38% | 13.15% | 5.89% | |
70 Outperform | $84.92B | 44.43 | 29.58% | ― | 42.11% | -6.84% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $33.56B | 17.44 | 6.15% | 3.37% | 12.13% | -67.45% | |
54 Neutral | $31.56B | -181.99 | -3.67% | ― | 13.10% | -163.64% |
* Consumer Cyclical Sector Average
SE
Sea
92.95
-57.55
-38.24%
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PDD
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Sea Corporate Events
Sea Limited Posts Robust Q1 2026 Results as Shopee, Monee and Garena Drive Growth
May 12, 2026
Sea Limited reported strong first-quarter 2026 results on May 12, 2026, with GAAP revenue climbing 46.6% year-on-year to $7.1 billion, gross profit rising 40.7% to $3.1 billion, and net income increasing 6.7% to $438.2 million. Adjusted EBITDA gre...
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.