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Sea (SE)
NYSE:SE
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Sea
(NYSE:SE)
Rating:78Outperform
Price Target:
$202.00
▲(7.28% Upside)
Positive Factors
Analyst Recommendation
Analyst's recommendation reiterates Buy rating with a new PT of $205, viewing SE as a secular compounder in Southeast Asia’s digital economy.
E-commerce Growth
Shopee posted record order volume, GMV, and revenue, with Shopee revenue accelerating 34% year-on-year, driven by a 46% surge in marketplace growth.
Financial Performance
The group maintained a robust gross cash position of US$10.6b and generated US$2.4b in operating cash flow, underscoring a healthy cash flow.
Negative Factors
Gaming Business Visibility
The gaming business lacks long-term visibility, with the need for new hit games to defend its gaming adjusted EBITDA.
Gaming Performance
Garena shows signs of a slowdown in growth, which could impact overall company performance.
Valuation Concerns
Despite raising the target price to US$170, there is limited upside due to stretched valuations.
Sea (SE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$111.03B
Dividend YieldN/A
Average Volume (3M)4.76M
Price to Earnings (P/E)95.2
Beta (1Y)1.38
Revenue Growth34.12%
EPS GrowthN/A
CountryUS
Employees80,700
SectorConsumer Cyclical
Sector Strength81
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.90
Shares Outstanding546,492,100
10 Day Avg. Volume5,959,594
30 Day Avg. Volume4,758,278
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue4.89
Enterprise Value/Gross Profit11.10
Enterprise Value/Ebitda60.86
Forecast
1Y Price Target
$196.29Price Target Upside4.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Sea Business Overview & Revenue Model
Company DescriptionSea 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 MoneySea 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 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:
Main Street Data
Main Street DataSea Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: 28.76%|
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong positive outlook for Sea Limited, with significant year-on-year growth across all business segments, particularly in e-commerce, digital financial services, and digital entertainment. While competitive pressures in Brazil are noted, the company's robust performance and strategic initiatives have positioned it well for continued success.Q2-2025 Updates
Positive Updates
Shopee's Growth and Profitability
Shopee's GMV grew 25% year-on-year in the first half of 2025, with a record-breaking Q2 in terms of gross order volume, GMV, and revenue. Shopee has become EBITDA positive since the second half of last year and is accumulating cash each quarter as it scales.
Digital Financial Services Expansion
Money's loan book grew over 90% year-on-year to $6.9 billion, with a healthy NPL ratio. Revenue and adjusted EBITDA grew more than 50% year-on-year, with over 4 million first-time borrowers added in the quarter.
Garena's Strong Performance
Garena's bookings were up 23% and adjusted EBITDA was up 22% year-on-year. Free Fire sustained its massive global user base of over 100 million average daily active users, with multiple key titles delivering double-digit growth.
Overall Financial Growth
Total GAAP revenue increased 38% year-on-year to $5.3 billion in Q2 2025. Total adjusted EBITDA was $829 million, significantly up from $448 million in Q2 2024.
Negative Updates
Competitive Pressures in Brazil
Despite exceptional growth in Brazil, competitive pressures are acknowledged, particularly from competitors reducing free shipping thresholds. However, Shopee maintains a competitive cost structure and pricing.
Company Guidance
During Sea Limited's Second Quarter 2025 Results Conference Call, the company provided optimistic guidance based on strong performance across its three core businesses. Shopee's gross merchandise value (GMV) grew by 25% year-on-year in the first half of 2025, with expectations of sustained growth in the third quarter. Garena's full-year bookings are projected to increase by over 30% year-on-year, and the digital financial services segment reported a 90% year-on-year growth in its loan book to $6.9 billion. The company highlighted strategic priorities focusing on growth, profitability, and cost efficiency, with all three businesses now EBITDA positive since the latter half of the previous year. For the quarter, total GAAP revenue rose by 38% to $5.3 billion, and adjusted EBITDA increased to $829 million from $448 million the previous year, reflecting robust operational execution and financial performance.Sea Financial Statement Overview
Summary
Sea's financial health is strong, characterized by consistent revenue and profit growth, efficient cost management, and solid cash flow generation. The company maintains a balanced capital structure with moderate leverage and improving equity returns. While cash flow metrics are robust, further strengthening in equity proportion could enhance financial stability.Income Statement
Sea has demonstrated robust revenue growth, with Total Revenue increasing from $16.8 billion in 2024 to $17.9 billion in TTM (Trailing-Twelve-Months), reflecting a 5.9% growth rate. The Gross Profit Margin improved to 44% in TTM, indicating strong cost management. The Net Profit Margin rose significantly to 4.9% in TTM, reflecting enhanced profitability, supported by a positive EBIT Margin of 5.8% and an EBITDA Margin of 7.9%.85
Very Positive
Balance Sheet
The Debt-to-Equity Ratio stands at 0.46 in TTM, showing a moderate level of leverage. The Return on Equity (ROE) improved to 9.8% in TTM, signaling better returns for shareholders. The Equity Ratio is at 37.6%, which suggests a solid capital structure, although there is room for improvement in equity financing.78
Positive
Cash Flow
Sea's Free Cash Flow increased from $2.96 billion in 2024 to $3.5 billion in TTM, indicating a 18.6% growth, which is a positive signal for cash generation. The Operating Cash Flow to Net Income Ratio is 4.07 in TTM, showing strong cash generation efficiency. The Free Cash Flow to Net Income Ratio is 4.00 in TTM, which signifies effective conversion of income into free cash.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.91B | 16.82B | 13.08B | 12.46B | 9.96B | 4.39B |
| Gross Profit | 7.88B | 7.21B | 5.73B | 5.04B | 3.82B | 1.30B |
| EBITDA | 1.44B | 1.21B | 908.47M | -1.02B | -1.30B | -1.18B |
| Net Income | 874.88M | 444.04M | 150.92M | -1.65B | -2.05B | -1.62B |
Balance Sheet | ||||||
| Total Assets | 23.84B | 22.63B | 18.88B | 17.00B | 18.76B | 10.46B |
| Cash, Cash Equivalents and Short-Term Investments | 8.43B | 8.62B | 5.36B | 6.89B | 10.16B | 6.29B |
| Total Debt | 4.15B | 4.12B | 4.46B | 4.49B | 4.25B | 2.09B |
| Total Liabilities | 14.77B | 14.15B | 12.19B | 11.19B | 11.33B | 7.04B |
| Stockholders Equity | 8.96B | 8.37B | 6.59B | 5.72B | 7.40B | 3.38B |
Cash Flow | ||||||
| Free Cash Flow | 3.59B | 2.96B | 1.82B | -2.03B | -598.53M | 219.59M |
| Operating Cash Flow | 3.56B | 3.28B | 2.08B | -1.06B | 208.65M | 555.87M |
| Investing Cash Flow | -5.30B | -5.04B | -5.80B | -2.43B | -3.77B | -886.91M |
| Financing Cash Flow | 1.78B | 1.68B | 366.01M | 400.26M | 7.40B | 3.73B |
Sea Technical Analysis
Positive
188.29
Price Trends
160.53
Positive
151.66
Positive
135.35
Positive
Market Momentum
7.97
Negative
74.55
Negative
90.35
Negative
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 188.29 is above the 20-day moving average (MA) of 167.24, above the 50-day MA of 160.53, and above the 200-day MA of 135.35, indicating a bullish trend. The MACD of 7.97 indicates Negative momentum. The RSI at 74.55 is Negative, neither overbought nor oversold. The STOCH value of 90.35 is Negative, 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 3 New Risks
1.
We face manpower-related risks. Q4, 2022
2.
We face risks related to our insurance business. Q4, 2022
3.
We face risks related to logistics and fulfillment. Q4, 2022
Sea Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $178.05B | 13.81 | 31.78% | ― | 20.09% | -1.83% | |
78 Outperform | $111.03B | 95.16 | 14.48% | ― | 34.12% | ― | |
77 Outperform | $43.25B | 21.78 | 42.63% | 1.18% | 3.05% | -10.82% | |
73 Outperform | $51.86B | 9.00 | 17.26% | 3.08% | 14.61% | 32.78% | |
72 Outperform | $122.07B | 59.46 | 43.83% | ― | 38.27% | 46.21% | |
62 Neutral | $52.03B | 143.71 | 8.55% | ― | 18.69% | -65.55% | |
61 Neutral | $17.75B | 12.51 | -5.49% | 3.06% | 1.43% | -14.10% |
* Consumer Cyclical Sector Average
Performance Comparison
SE
Sea
188.29
107.05
131.77%
EBAY
eBay
94.64
37.85
66.65%
MELI
Mercadolibre
2,405.53
410.36
20.57%
JD
JD
31.81
5.87
22.63%
PDD
PDD Holdings
123.91
34.74
38.96%
CPNG
Coupang
28.42
6.51
29.71%
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.