Sea (SE)
NYSE:SE
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Sea
(NYSE:SE)
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Rating:64Neutral
Price Target:
$93.00
▲(1.83% Upside)
Action:DowngradedDate:04/22/26
Score is driven primarily by improved fundamentals and strong recent free cash flow, supported by better leverage trends. Offsetting this, the stock’s technical picture remains weak versus longer-term moving averages and valuation is rich (P/E ~48), which increases sensitivity to any execution or margin volatility.
Positive Factors
Strong free cash flow
Sustained high operating and free cash flow in 2024–2025 (~$5.0B OCF, ~$4.5B FCF) indicates strong internal funding for reinvestment, buybacks, or debt reduction. This quality of cash generation makes profit recovery durable and supports strategic flexibility over the next several quarters.
Negative Factors
Residual meaningful debt
Although leverage improved, the company still carries material absolute debt (~$3.3B). In a slower growth or higher-rate environment, servicing and rollover risk could constrain capital allocation and force tighter operating choices, testing durability over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Sustained high operating and free cash flow in 2024–2025 (~$5.0B OCF, ~$4.5B FCF) indicates strong internal funding for reinvestment, buybacks, or debt reduction. This quality of cash generation makes profit recovery durable and supports strategic flexibility over the next several quarters.
Read all positive factors
Sea (SE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.24B
Dividend YieldN/A
Average Volume (3M)3.80M
Price to Earnings (P/E)48.1
Beta (1Y)1.68
Revenue Growth36.38%
EPS Growth245.29%
CountryUS
Employees80,700
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.85
Shares Outstanding565,506,350
10 Day Avg. Volume3,124,466
30 Day Avg. Volume3,803,245
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 Cap0.92
Enterprise Value/Revenue2.09
Enterprise Value/Gross Profit4.68
Enterprise Value/Ebitda21.68
Forecast
1Y Price Target
$147.44Price Target Upside61.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)3.54
Revenue Forecast (FY)$29.47B
Sea Business Overview & Revenue Model
Company Description
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 offers Garena digital entertainment pla...
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 Key Performance Indicators (KPIs)
Any
Garena Quarterly Active Users
Measures the number of users engaging with Garena's platform each quarter, indicating the platform's popularity and potential for monetization through in-game purchases.
Measures the number of users engaging with Garena's platform each quarter, indicating the platform's popularity and potential for monetization through in-game purchases.
Data provided by:
The Fly
The FlySea Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed broadly positive momentum: strong, broad-based revenue growth (36% YoY), sizable improvement in adjusted EBITDA (+75% YoY) and meaningful profit recovery (net income up ~260% YoY). All three core businesses scaled in 2025 with clear operational wins in monetization (ads), logistics (30M parcels/day), financial services (loan book growth with stable NPL) and gaming (Garena bookings and IP successes). Primary headwinds are higher tax expense, sizable near-term investments (logistics/fulfillment/AI) that may keep absolute margins modest in the short term, and execution risk tied to rapid Monee scale and early-stage penetration in markets like Brazil. On balance, highlights significantly outweigh the lowlights while management set conservative-yet-growth-focused 2026 targets (Shopee GMV ~+25% and EBITDA at least flat in dollars), supporting an overall positive outlook.Positive Updates
Record Consolidated Revenue and Strong Profitability
Full year 2025 revenue of ~$22.9B (reported as $23B), up 36% year-on-year; full year net income of $1.6B (≈+260% YoY) and adjusted EBITDA of $3.4B (+75% YoY), reflecting substantial top-line growth alongside material operating profit expansion.
Negative Updates
Rising Tax Expense
Net income tax expense increased to $651M for FY2025 from $321M in FY2024, materially increasing tax burden and reducing net cash retention despite higher pre-tax profits.
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Q4-2025 Updates
Positive
Negative
Record Consolidated Revenue and Strong Profitability
Full year 2025 revenue of ~$22.9B (reported as $23B), up 36% year-on-year; full year net income of $1.6B (≈+260% YoY) and adjusted EBITDA of $3.4B (+75% YoY), reflecting substantial top-line growth alongside material operating profit expansion.
Read all positive updates
Company Guidance
Management's guidance for 2026 called for Shopee to grow annual GMV by around 25% year‑on‑year while keeping full‑year adjusted EBITDA at least flat versus 2025 (Shopee 2025 adjusted EBITDA: $881m), with plans to double fulfillment order penetration by end‑2026 and to roll out Shopee VIP (7m+ subscribers at end‑2025) into Brazil; Garena is expected to deliver double‑digit bookings growth in 2026 after 2025 bookings of ~$2.9bn (+37% YoY); Sea reiterated its medium‑term e‑commerce EBITDA margin ambition of roughly 2–3% and signaled continued AI and logistics investments, while highlighting Monee’s strong footing (2025 revenue $3.8bn, adjusted EBITDA ~$1.0bn, loans outstanding ~$9.2bn with 90‑day NPL ~1.1%) as a growing profit contributor to support another year of company‑level growth and healthy profit following 2025 consolidated revenue of ~$22.9bn (+36% YoY), adjusted EBITDA $3.4bn (+75% YoY) and net income $1.6bn.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 | 1.86B | 1.05B | 783.50M | -704.22M | -1.30B |
| 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
Negative
91.33
Price Trends
93.55
Negative
110.53
Negative
139.31
Negative
Market Momentum
-0.74
Negative
57.79
Neutral
81.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE, the sentiment is Negative. The current price of 91.33 is above the 20-day moving average (MA) of 83.37, below the 50-day MA of 93.55, and below the 200-day MA of 139.31, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 57.79 is Neutral, neither overbought nor oversold. The STOCH value of 81.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $137.08B | 11.47 | 26.44% | ― | 9.87% | -12.32% | |
71 Outperform | $44.93B | 19.34 | 42.68% | 1.38% | 8.07% | 10.26% | |
70 Outperform | $93.25B | 51.14 | 33.73% | ― | 39.06% | 4.50% | |
64 Neutral | $52.24B | 48.10 | 15.34% | ― | 36.38% | 245.29% | |
64 Neutral | $40.93B | 14.55 | 8.57% | 3.37% | 13.13% | -51.27% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $37.46B | 206.19 | 4.52% | ― | 14.09% | 34.31% |
* Consumer Cyclical Sector Average
SE
Sea
85.84
-48.21
-35.96%
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PDD
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CPNG
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Sea Corporate Events
Sea Limited Posts Surging 2025 Profit as Shopee, Monee and Garena Power Broad-Based Growth
Mar 3, 2026
On March 3, 2026, Sea Limited reported strong fourth-quarter and full-year 2025 results, with Q4 GAAP revenue rising 38.4% year-on-year to US$6.9 billion and net income jumping 72.9% to US$410.9 million. For 2025 as a whole, revenue grew 36.4% to ...
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.