Sea (SE) AI Stock Analysis

• Market Cap: $83.39B
• Dividend Yield: N/A
• Average Volume (3M): 5.06M
• Price to Earnings (P/E): 60.3
• Beta (1Y): 1.26
• Revenue Growth: N/A
• EPS Growth: N/A
• 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: 6,336,672
• 30 Day Avg. Volume: 5,058,229
• 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: 1.18
• Enterprise Value/Revenue: 5.07
• Enterprise Value/Gross Profit: 11.28
• Enterprise Value/Ebitda: 56.17
• 1Y Price Target: $193.58
• Price Target Upside: 37.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $156.00 ▲(10.76% Upside)

Sea Limited's overall stock score is driven by strong financial performance and a positive earnings call, highlighting robust growth and strategic advancements. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. Challenges in e-commerce margins and strategic shifts in Latin America 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 (SE) is a leading digital entertainment and e-commerce company based in Southeast Asia. The company operates primarily through three key segments: Garena, which focuses on digital gaming and esports; Shopee, an e-commerce platform facilitating online shopping; and SeaMoney, which offers digital financial services. With a strong presence in various markets, Sea aims to empower consumers and businesses through innovative technology and user-friendly platforms.

How the Company Makes Money

Sea Limited generates revenue through multiple streams. The Garena segment earns money primarily through the sale of virtual goods and in-game purchases in popular mobile games such as Free Fire. The Shopee segment generates revenue through a combination of transaction fees, advertising services, and value-added services for sellers. Additionally, SeaMoney contributes to the company's earnings by offering payment solutions and financial services, earning revenue from transaction fees and interest on loans. Strategic partnerships with game developers and brands enhance their revenue potential, while a growing user base across all segments supports increased monetization opportunities.

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: 140.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 140.85 is below the 20-day moving average (MA) of 154.13, below the 50-day MA of 172.77, and below the 200-day MA of 153.30, indicating a bearish trend. The MACD of -8.16 indicates Positive momentum. The RSI at 29.68 is Positive, neither overbought nor oversold. The STOCH value of 13.24 is Positive, 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
PDD	76 Outperform	$181.86B	14.18	32.01%	―	20.59%	-1.29%
MELI	71 Outperform	$103.87B	50.01	40.65%	―	38.01%	44.52%
EBAY	70 Outperform	$37.90B	18.25	42.43%	1.40%	4.89%	17.30%
JD	70 Outperform	$48.09B	9.90	13.68%	3.34%	16.54%	-3.61%
SE	69 Neutral	$83.39B	60.26	―	―	―	―
CPNG	66 Neutral	$51.55B	133.55	8.73%	―	16.63%	-62.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Sea Corporate Events

Sea Limited Announces Annual General Meeting for September 24, 2025

On September 2, 2025, Sea Limited announced its annual general meeting of shareholders will be held on September 24, 2025, in Singapore. The meeting will not include any proposals for shareholder approval. Shareholders and ADS holders as of September 12, 2025, are entitled to attend, but must confirm attendance by September 17, 2025, due to venue capacity constraints. This announcement underscores Sea’s commitment to maintaining transparent communication with its stakeholders and may impact shareholder engagement strategies.

Sea Limited Reports Robust Q2 2025 Growth Across All Segments

Sea Limited reported strong financial results for the second quarter of 2025, with significant growth across its three main business segments. The company achieved a total GAAP revenue of $5.3 billion, marking a 38.2% increase year-on-year, and a total net income of $414.2 million, up from $79.9 million in the same period last year. Shopee, its e-commerce platform, saw a 25% year-on-year growth in GMV, while Monee expanded its loan portfolio and maintained high asset quality. Garena’s digital entertainment segment also performed well, with a 23.2% increase in bookings. Sea Limited’s strategic focus on growth and profitability is expected to strengthen its market leadership and long-term earnings potential.