Sea Limited
Sea Limited Fundamental Analysis
Sea Limited (SE) shows moderate financial fundamentals with a PE ratio of 33.38, profit margin of 6.40%, and ROE of 14.24%. The company generates $25.2B in annual revenue with strong year-over-year growth of 36.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SE's fundamental strength across five key dimensions:
Efficiency Score
WeakSE struggles to generate sufficient returns from assets.
Valuation Score
ModerateSE shows balanced valuation metrics.
Growth Score
ModerateSE shows steady but slowing expansion.
Financial Health Score
ExcellentSE maintains a strong and stable balance sheet.
Profitability Score
WeakSE struggles to sustain strong margins.
Key Financial Metrics
Is SE Expensive or Cheap?
P/E Ratio
SE trades at 33.38 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SE's PEG of 0.42 indicates potential undervaluation.
Price to Book
The market values Sea Limited at 4.18 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.25 times EBITDA. This signals the market has high growth expectations.
How Well Does SE Make Money?
Net Profit Margin
For every $100 in sales, Sea Limited keeps $6.40 as profit after all expenses.
Operating Margin
Core operations generate 8.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.24 in profit for every $100 of shareholder equity.
ROA
Sea Limited generates $5.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sea Limited produces operating cash flow of $5.03B, showing steady but balanced cash generation.
Free Cash Flow
Sea Limited generates strong free cash flow of $3.20B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.23 in free cash annually.
FCF Yield
SE converts 5.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SE Stacks Against Its Sector Peers
| Metric | SE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.38 | 23.70 | Worse (Expensive) |
| ROE | 14.24% | 1185.00% | Weak |
| Net Margin | 6.40% | 2505.00% | Weak |
| Debt/Equity | 0.28 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.58 | 2.86 | Neutral |
| ROA | 5.27% | -8133.00% (disorted) | Weak |
SE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sea Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
320.48%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
178.23%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
625.50%
Industry Style: Cyclical, Growth, Discretionary
High Growth