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Sea
(NYSE:SE)
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Rating:71Outperform
Price Target:
$114.00
▲(24.82% Upside)
Action:Reiterated
Date:07/04/26
The score is driven primarily by improving fundamentals (profitability turnaround, strong operating cash flow, and better leverage) and a supportive earnings outlook with robust growth indicators. This is tempered by a relatively expensive valuation (high P/E) and near-term margin pressure from reinvestment, while technicals are positive but approaching overbought levels.
Positive Factors
Sustained Profitability
Sea’s TTM gross margin near 44% and positive EBIT/EBITDA margins (~9–11%) reflect durable operating scale and improved unit economics across gaming, commerce and fintech. Sustained mid-single-digit+ margins provide structural capacity to fund product investment and margin resiliency through cycles.
Negative Factors
E-commerce Margin Compression
A ~52% YoY drop in Shopee adjusted EBITDA reflects deliberate reinvestment in fulfillment, VIP, user acquisition and logistics. Persistent reinvestment can structurally compress e-commerce margins and delay meaningful margin recovery, increasing reliance on sustained top-line growth to fund economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Profitability
Sea’s TTM gross margin near 44% and positive EBIT/EBITDA margins (~9–11%) reflect durable operating scale and improved unit economics across gaming, commerce and fintech. Sustained mid-single-digit+ margins provide structural capacity to fund product investment and margin resiliency through cycles.
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
$64.73B
Dividend YieldN/A
Average Volume (3M)4.21M
Price to Earnings (P/E)39.4
Beta (1Y)1.63
Revenue Growth40.54%
EPS Growth78.98%
CountryUS
Employees102,700
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)2.68
Shares Outstanding565,506,350
10 Day Avg. Volume5,227,606
30 Day Avg. Volume4,205,470
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
$145.90Price Target Upside59.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)3.52
Revenue Forecast (FY)$30.38B
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 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 Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call conveyed robust top-line growth and strong operational momentum across all three verticals—Shopee (GMV and monetization), Money (rapid loan-book expansion with stable asset quality), and Garena (record bookings and high engagement). Management emphasized AI-driven efficiency gains and continued invest-to-scale initiatives (fulfillment, VIP, content) that are already improving unit economics. The principal negatives were a sharp YoY decline in Shopee adjusted EBITDA driven by deliberate investments, rising tax and nonoperating headwinds, some margin uncertainty in fintech, and potential cost pressures from higher fuel prices. Overall, the positives (strong revenue/GMV growth, improving monetization, high-adjusted EBITDA, healthy loan metrics and gaming momentum) outweigh the lowlights, though near-term margin impacts from investments are notable.Positive Updates
Strong Overall Revenue Growth
Total GAAP revenue of $7.1B in Q1 2026, up 47% year-on-year, driven primarily by Shopee and Money.
Negative Updates
Shopee Adjusted EBITDA Decline
Shopee adjusted EBITDA fell to $223M in Q1 2026 from $464M in Q1 2025 (≈52% decline year-on-year), reflecting increased investments in delivery, fulfillment, VIP, user acquisition and higher amortization.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Overall Revenue Growth
Total GAAP revenue of $7.1B in Q1 2026, up 47% year-on-year, driven primarily by Shopee and Money.
Read all positive updates
Company Guidance
Sea guided that Shopee is on track to grow 2026 annual GMV by around 25% year‑on‑year and to deliver full‑year Shopee adjusted EBITDA no lower than 2025 in absolute dollars, while the company overall expects to continue improving adjusted EBITDA year‑on‑year as it leans into growth investments; management also reiterated a medium‑term target of roughly 2–3% e‑commerce adjusted‑EBITDA margin. To frame that guidance, Q1 metrics included consolidated revenue of $7.1B (+47% YoY) and consolidated adjusted EBITDA of $1.0B (+9% YoY); Shopee Q1 GMV $37.3B (+30%), gross orders 4.0B (+29%) and Shopee adjusted EBITDA $223M; Money Q1 revenue $1.2B (+58%), adjusted EBITDA $275M and a loan book of $9.9B (+71%) with 90‑day NPLs at 1.1%; and Garena Q1 bookings $931M (+20%) with adjusted EBITDA $574M—metrics management cited as the basis for its 2026 outlook.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
91.33
Price Trends
93.85
Positive
90.48
Positive
114.28
Negative
Market Momentum
4.60
Positive
58.83
Neutral
30.07
Neutral
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 91.33 is below the 20-day moving average (MA) of 101.52, below the 50-day MA of 93.85, and below the 200-day MA of 114.28, indicating a neutral trend. The MACD of 4.60 indicates Positive momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 30.07 is Neutral, 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 | $122.48B | 8.39 | 24.04% | ― | 11.69% | -1.85% | |
71 Outperform | $64.73B | 39.44 | 14.24% | ― | 40.54% | 78.98% | |
71 Outperform | $50.70B | 25.38 | 44.12% | 1.38% | 13.15% | 5.89% | |
70 Outperform | $92.90B | 48.37 | 29.58% | ― | 42.11% | -6.84% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $41.97B | 21.05 | 6.15% | 3.37% | 12.13% | -67.45% | |
54 Neutral | $29.51B | -170.19 | -3.67% | ― | 13.10% | -163.64% |
* Consumer Cyclical Sector Average
SE
Sea
106.26
-48.56
-31.37%
EBAY
eBay
113.05
32.32
40.04%
MELI
Mercadolibre
1,822.65
-562.07
-23.57%
JD
JD
30.43
-2.31
-7.05%
PDD
PDD Holdings
84.83
-30.21
-26.26%
CPNG
Coupang
15.76
-15.02
-48.80%
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.