Sea (SE) AI Stock Analysis

• Market Cap: $79.32B
• Dividend Yield: N/A
• Average Volume (3M): 4.92M
• Price to Earnings (P/E): 57.3
• Beta (1Y): 1.38
• Revenue Growth: 35.85%
• EPS Growth: 1336.48%
• Country: US
• Employees: 80,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.59
• Shares Outstanding: 546,492,100
• 10 Day Avg. Volume: 3,470,031
• 30 Day Avg. Volume: 4,924,444
• PEG Ratio: 0.74
• Price to Book (P/B): 7.29
• Price to Sales (P/S): 3.63
• P/FCF Ratio: 20.64
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 5.07
• Enterprise Value/Gross Profit: 11.28
• Enterprise Value/Ebitda: 56.17
• 1Y Price Target: $189.52
• Price Target Upside: 41.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 3.21
• Revenue Forecast (FY): $22.58B

• Rating: 69 Neutral
• Price Target: $144.00 ▲(7.47% Upside)

Sea Limited's strong financial performance and positive earnings call are major strengths, reflecting robust growth and strategic advancements. However, technical indicators show bearish momentum, and the absence of valuation metrics adds uncertainty. Challenges in e-commerce margins and specific regional markets also pose risks.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.

Digital Financial Services Expansion

The expansion of SeaMoney's loan book and revenue growth highlights the increasing adoption of digital financial services, enhancing future revenue streams.

Operational Efficiency

Improved logistics and fulfillment enhance operational efficiency, reducing costs and improving customer satisfaction, which supports long-term competitiveness.

Negative Factors

Decreased E-commerce Margin

The declining e-commerce margin suggests challenges in maintaining profitability amidst investments, potentially impacting future earnings.

Market Challenges in Latin America

Strategic challenges in Latin America, evidenced by operational closures, may limit growth opportunities and require resource reallocation.

High Leverage Concerns

While leverage is moderate, any increase could strain financial flexibility, impacting the company's ability to invest in growth opportunities.

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 platform for users to access mobile and PC online games, as well as eSports operations; and access to other entertainment content, including 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 provides integrated payment and logistics infrastructure and seller services. In addition, it offers SeaMoney digital financial services to individuals and businesses, including offline and online mobile wallet, and payment processing services, as well as other offerings across credit, insurtech, and digital bank services under the ShopeePay, SPayLater, SeaBank, and other digital financial services brands; and payment processing services for Shopee. The company was formerly known as Garena Interactive Holding Limited and changed its name to Sea Limited in April 2017. Sea Limited was incorporated in 2009 and is headquartered in Singapore.

How the Company Makes Money

Sea generates revenue through multiple streams. In its digital entertainment segment, the company earns money primarily through in-game purchases and sales of virtual goods on its Garena platform, which has a strong portfolio of popular games. The e-commerce arm, Shopee, generates revenue through transaction fees, commissions from sales, and advertising services offered to sellers on the platform. SeaMoney contributes to the company's earnings by providing payment processing services, loans, and other financial products, earning revenue through service fees and interest on loans. Additionally, strategic partnerships with local and international brands enhance visibility and sales, further driving revenue growth.

Sea Financial Statement Overview

Summary

Sea Limited has shown significant improvements across all financial statements. The income statement reflects strong revenue growth and improved profitability. The balance sheet indicates financial stability with moderate leverage and improved returns. The cash flow statement highlights robust cash generation and effective cash management. Overall, Sea is on a positive financial trajectory with strong growth and stability.

Income Statement

Sea has demonstrated strong revenue growth with an 8.4% increase in TTM, supported by a solid gross profit margin of 44.95%. The net profit margin has improved significantly to 6.16%, indicating enhanced profitability. The EBIT and EBITDA margins have also shown positive trends, reflecting operational efficiency improvements. Overall, the income statement reflects a robust growth trajectory and improved profitability.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.43, indicating moderate leverage. Return on equity has improved to 13.68%, showcasing effective utilization of equity to generate profits. The equity ratio stands at 38.05%, suggesting a stable financial structure. Overall, the balance sheet reflects financial stability with manageable debt levels and improved returns.

Cash Flow

Sea's cash flow performance is strong, with a 23.59% growth in free cash flow, indicating robust cash generation capabilities. The operating cash flow to net income ratio is 0.28, and the free cash flow to net income ratio is 0.98, highlighting efficient cash flow management. Overall, the cash flow statement reflects strong cash generation and effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.38B	16.82B	13.06B	12.45B	9.96B	4.38B
Gross Profit	8.71B	7.21B	5.83B	5.19B	3.90B	1.35B
EBITDA	1.75B	1.05B	783.50M	-704.22M	-1.30B	-1.12B
Net Income	1.21B	444.32M	150.73M	-1.65B	-2.05B	-1.62B
Balance Sheet
Total Assets	25.44B	22.63B	18.88B	17.00B	18.76B	10.46B
Cash, Cash Equivalents and Short-Term Investments	9.41B	8.62B	5.36B	6.89B	10.16B	6.29B
Total Debt	4.19B	4.12B	4.46B	4.49B	4.25B	2.09B
Total Liabilities	15.66B	14.15B	12.19B	11.19B	11.33B	7.04B
Stockholders Equity	9.68B	8.37B	6.59B	5.72B	7.40B	3.38B
Cash Flow
Free Cash Flow	4.12B	2.96B	1.82B	-2.03B	-598.53M	219.59M
Operating Cash Flow	4.56B	3.28B	2.08B	-1.06B	208.65M	555.87M
Investing Cash Flow	-6.11B	-5.04B	-5.80B	-2.43B	-3.77B	-886.91M
Financing Cash Flow	1.59B	1.68B	366.01M	400.26M	7.40B	3.73B

Sea Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 133.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 133.99 is below the 20-day moving average (MA) of 139.69, below the 50-day MA of 157.85, and below the 200-day MA of 153.93, indicating a bearish trend. The MACD of -6.42 indicates Negative momentum. The RSI at 37.14 is Neutral, neither overbought nor oversold. The STOCH value of 45.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE.

Sea Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MELI	73 Outperform	$104.76B	50.44	40.65%	―	38.01%	44.52%
EBAY	70 Outperform	$37.28B	17.95	42.43%	1.41%	4.89%	17.30%
JD	70 Outperform	$43.64B	10.11	13.68%	3.28%	16.17%	-4.37%
PDD	70 Outperform	$163.74B	12.28	30.03%	―	11.25%	-7.28%
SE	69 Neutral	$79.32B	57.30	15.66%	―	35.85%	1336.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CPNG	61 Neutral	$49.52B	128.30	8.73%	―	16.63%	-62.54%

Sea Corporate Events

Sea Limited Launches $1 Billion Share Repurchase Program

On November 17, 2025, Sea Limited announced that its board of directors has authorized a share repurchase program allowing the company to buy back up to US$1 billion of its American depositary shares. This initiative reflects the company’s confidence in its long-term growth prospects and provides flexibility to repurchase shares based on market conditions. The move is expected to strengthen Sea’s market position and potentially enhance shareholder value.

Sea Limited Achieves Strong Q3 2025 Growth Across All Segments

Sea Limited reported robust financial results for the third quarter of 2025, with significant growth across its e-commerce, digital financial services, and digital entertainment segments. The company achieved a total GAAP revenue of $6.0 billion, marking a 38.3% year-on-year increase, and a net income of $375 million, more than doubling from the previous year. Shopee, Sea’s e-commerce platform, set new records in gross merchandise volume and revenue, while Monee expanded its digital financial services reach, and Garena’s digital entertainment bookings surged by 51% year-on-year. These results underscore Sea’s strong market positioning and growth potential in its key markets.