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Sea
(NYSE:SE)
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Rating:73Outperform
Price Target:
$128.00
▲(28.00% Upside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by improved fundamentals (sustained profitability, strong cash generation, and reduced leverage) and supportive technical momentum (price above major moving averages with positive MACD). The latest earnings call adds confidence via reiterated FY2026 targets and strong YoY growth. These positives are tempered by a demanding valuation (P/E ~42.8) and a recent step-down in free cash flow versus 2025.
Positive Factors
Profitability & cash generation
Sea's shift from prior losses to sustained mid-to-high gross margins (~44%), positive EBIT margins (~9–10%) and meaningful free cash flow (~$3.36B TTM, operating cash flow ~$5.3B) provides durable self-funding for investments, share repurchases and deleveraging, improving financial optionality over the next several quarters.
Negative Factors
Free cash flow decline & weaker conversion
A step-down in free cash flow and a decline in earnings-to-cash conversion highlight volatility in cash conversion that can constrain reinvestment and balance sheet repair. If conversion does not stabilize, funding growth, buybacks or debt reduction may require more conservative reinvestment or external financing over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & cash generation
Sea's shift from prior losses to sustained mid-to-high gross margins (~44%), positive EBIT margins (~9–10%) and meaningful free cash flow (~$3.36B TTM, operating cash flow ~$5.3B) provides durable self-funding for investments, share repurchases and deleveraging, improving financial optionality over the next several quarters.
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
$80.55B
Dividend YieldN/A
Average Volume (3M)4.26M
Price to Earnings (P/E)47.8
Beta (1Y)1.61
Revenue Growth43.06%
EPS Growth32.91%
CountryUS
Employees102,700
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)2.68
Shares Outstanding565,506,350
10 Day Avg. Volume4,586,545
30 Day Avg. Volume4,262,781
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$149.74Price Target Upside49.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)3.54
Revenue Forecast (FY)$31.21B
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 primarily generates revenue through its three operating segments. (1) E-commerce (Shopee): Shopee earns income mainly from monetizing marketplace activity, including transaction-based fees and commissions charged to sellers (often for facilita...
Sea Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call conveyed broad-based strong growth across Sea's three pillars—e‑commerce (Shopee), fintech (Monee) and gaming (Garena)—with materially higher revenue (+48% YoY) and positive adjusted EBITDA trends (+11% YoY). Shopee displayed improving unit economics, ad monetization gains and logistics/fulfillment traction while Monee scaled its loan book rapidly with stable reported NPLs and meaningful AI/underwriting improvements. Key concerns are higher provisioning driven by loan mix, a sharp rise in tax expense, ongoing S&M investment in fintech, and potential FX/seasonality headwinds. Overall, strengths and growth momentum materially outweighed near-term headwinds, and management provided constructive full‑year objectives (Shopee $1B adjusted EBITDA, ~25% GMV guidance).Positive Updates
Strong Consolidated Top-Line and Profitability
Total revenue of $7.8 billion, up 48% year-on-year; total adjusted EBITDA of $917 million, up 11% year-on-year; net income $458 million, up 11% year-on-year.
Negative Updates
Higher Loan Loss Provisions Driven by Loan Mix
Provisions for credit losses increased materially in the quarter, primarily driven by mix shifts toward higher-provisioning segments (off-Shopee SPayLater loans and Brazil loans), which elevated credit provisioning despite stable 90-day NPLs.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Consolidated Top-Line and Profitability
Total revenue of $7.8 billion, up 48% year-on-year; total adjusted EBITDA of $917 million, up 11% year-on-year; net income $458 million, up 11% year-on-year.
Read all positive updates
Company Guidance
Management reiterated that Shopee is on track to deliver $1.0 billion of adjusted EBITDA for full‑year 2026 and maintained a full‑year GMV growth target of ~25% (Q2 GMV $38.3B, +28% YoY; gross orders 4.2B, +27% YoY), while flagging potential FX headwinds and a higher Q3/Q4 base; they expect second‑half EBITDA to exceed first half. They reported Q2 consolidated GAAP revenue of $7.8B (+48% YoY) and total adjusted EBITDA of $917M (+11% YoY); Shopee Q2 adjusted EBITDA was ≈$255M, GAAP marketplace revenue $4.9B (+49% YoY), ad revenue +70% YoY with ad take rate +90bps, ad‑paying sellers +45% and average ad spend per seller +15% YoY. Management also reiterated a medium‑term e‑commerce EBITDA margin aspiration of 2–3% (current ~0.67%), and highlighted Monee scale: loan book $11.1B (+52% YoY), 90‑day NPL ~1.0%, >40M active credit users (+34% YoY).Sea Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.19B | 22.94B | 16.82B | 13.06B | 12.45B | 9.96B |
| Gross Profit | 11.15B | 10.24B | 7.21B | 5.83B | 5.19B | 3.90B |
| EBITDA | 2.69B | 2.67B | 1.20B | 783.50M | -704.22M | -1.29B |
| Net Income | 1.61B | 1.58B | 444.32M | 150.73M | -1.65B | -2.05B |
Balance Sheet | ||||||
| Total Assets | 30.59B | 29.37B | 22.63B | 18.88B | 17.00B | 18.76B |
| Cash, Cash Equivalents and Short-Term Investments | 12.76B | 12.79B | 8.62B | 5.36B | 6.89B | 10.16B |
| Total Debt | 3.58B | 3.33B | 4.12B | 4.46B | 4.49B | 4.25B |
| Total Liabilities | 17.61B | 16.72B | 14.15B | 12.19B | 11.19B | 11.33B |
| Stockholders Equity | 12.85B | 12.53B | 8.37B | 6.59B | 5.72B | 7.40B |
Cash Flow | ||||||
| Free Cash Flow | 3.36B | 4.51B | 2.96B | 1.82B | -2.03B | -598.53M |
| Operating Cash Flow | 5.33B | 5.03B | 3.28B | 2.08B | -1.06B | 208.65M |
| Investing Cash Flow | -4.90B | -4.43B | -5.04B | -5.80B | -2.43B | -3.77B |
| Financing Cash Flow | 1.83B | 1.64B | 1.68B | 366.01M | 400.26M | 7.40B |
Sea Technical Analysis
Positive
100.00
Price Trends
100.96
Positive
93.57
Positive
108.75
Positive
Market Momentum
5.87
Negative
71.21
Negative
91.72
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 100 is below the 20-day moving average (MA) of 109.80, below the 50-day MA of 100.96, and below the 200-day MA of 108.75, indicating a bullish trend. The MACD of 5.87 indicates Negative momentum. The RSI at 71.21 is Negative, neither overbought nor oversold. The STOCH value of 91.72 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 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 | $128.82B | 8.65 | 24.04% | ― | 11.69% | -1.85% | |
73 Outperform | $80.55B | 47.80 | 14.24% | ― | 43.06% | 32.91% | |
72 Outperform | $47.17B | 20.71 | 48.28% | 1.10% | 15.18% | 7.28% | |
71 Outperform | $98.35B | 49.75 | 26.54% | ― | 46.01% | -9.25% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $44.20B | 21.49 | 6.15% | 3.31% | 12.13% | -67.45% | |
52 Neutral | $29.66B | -37.59 | -18.84% | ― | 9.92% | -309.73% |
* Consumer Cyclical Sector Average
SE
Sea
128.11
-46.55
-26.65%
EBAY
eBay
102.31
2.82
2.83%
MELI
Mercadolibre
1,828.29
-499.01
-21.44%
JD
JD
31.61
0.20
0.63%
PDD
PDD Holdings
89.04
-27.60
-23.66%
CPNG
Coupang
16.32
-12.15
-42.68%
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.