Sea Ltd
NYSE:SE
Intrinsic Value
Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. [ Read More ]
The intrinsic value of one SE stock under the Base Case scenario is 37.61 USD. Compared to the current market price of 53.57 USD, Sea Ltd is Overvalued by 30%.
Valuation Backtest
Sea Ltd
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Fundamental Analysis
Improved Margins and Breakeven Predicted
2023-Q4 Earnings Call
In 2023, the company's adjusted EBITDA soared to $1.2 billion from a loss of $878 million in 2022, driven by 23% year-on-year growth in Q4 GAAP marketplace revenue to $2.3 billion and a full-year GAAP marketplace revenue increase of 27% to $7.9 billion. A slight dip was seen in value-added services revenue, decreasing by 5% year-on-year. The adjusted EBITDA loss for e-commerce narrowed 87% year-on-year to $240 million. Digital financial services saw a 44% year-on-year surge in GAAP revenue to $1.8 billion, with the EBITDA spiking up by 341% to $550 million. The company reversed a net loss of $1.7 billion in 2022 to a net income of $163 million in 2023. Cash reserves grew by $566 million to $8.5 billion, breathing financial stability. Executives exuded confidence that Shopee would breakeven in the second half of the year, maintaining or growing its market share, particularly in Indonesia, with high-teen growth expected for the full year 2024.
Balance Sheet Decomposition
Sea Ltd
Current Assets | 11.8B |
Cash & Short-Term Investments | 5.4B |
Receivables | 3B |
Other Current Assets | 3.4B |
Non-Current Assets | 7.1B |
Long-Term Investments | 4.3B |
PP&E | 2.2B |
Intangibles | 163.6m |
Other Non-Current Assets | 459.5m |
Current Liabilities | 8.2B |
Accounts Payable | 342.5m |
Accrued Liabilities | 2.1B |
Short-Term Debt | 2B |
Other Current Liabilities | 3.7B |
Non-Current Liabilities | 4.1B |
Long-Term Debt | 3.1B |
Other Non-Current Liabilities | 1.1B |
Earnings Waterfall
Sea Ltd
Revenue
|
13.1B
USD
|
Cost of Revenue
|
-7.2B
USD
|
Gross Profit
|
5.8B
USD
|
Operating Expenses
|
-5.5B
USD
|
Operating Income
|
342.7m
USD
|
Other Expenses
|
-191.9m
USD
|
Net Income
|
150.7m
USD
|
Free Cash Flow Analysis
Sea Ltd
What is Free Cash Flow?
SE Profitability Score
Profitability Due Diligence
Sea Ltd's profitability score is 41/100. The higher the profitability score, the more profitable the company is.
Score
Sea Ltd's profitability score is 41/100. The higher the profitability score, the more profitable the company is.
SE Solvency Score
Solvency Due Diligence
Sea Ltd's solvency score is 50/100. The higher the solvency score, the more solvent the company is.
Score
Sea Ltd's solvency score is 50/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
SE Price Targets Summary
Sea Ltd
According to Wall Street analysts, the average 1-year price target for SE is 66.56 USD with a low forecast of 41.41 USD and a high forecast of 94.5 USD.
Shareholder Return
SE Price
Sea Ltd
Average Annual Return | 99.36% |
Standard Deviation of Annual Returns | 202.71% |
Max Drawdown | -91% |
Market Capitalization | 32.8B USD |
Shares Outstanding | 568 758 976 |
Percentage of Shares Shorted | 7.45% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. The firm operates under three segments, namely digital entertainment, e-commerce, as well as digital payments and financial services. Its businesses include Garena, Shopee, and SeaMoney. Garena's platform offers mobile and personal computer (PC) online games and develops mobile games for the global market. The company offers e-sports and provides access to other entertainment content and social features, such as live streaming of gameplay, user chat and online forums. Shopee's platform is a mobile-centric, social-focused marketplace. The company provides users a shopping environment with integrated payment, logistics infrastructure and seller services. SeaMoney provides various payment services and loans to individuals and businesses. The company also integrates with third party merchant partners and covers a set of consumption use cases. The company operates in locations, such as Indonesia, Taiwan, Vietnam, Thailand, Singapore, Malaysia, and the Philippines, among others.
Contact
IPO
Employees
Officers
The intrinsic value of one SE stock under the Base Case scenario is 37.61 USD.
Compared to the current market price of 53.57 USD, Sea Ltd is Overvalued by 30%.