Now trading at a price of $63.61, Sea has moved 5.6% so far today.
Sea returned losses of -2105.6% last year, with its stock price reaching a high of $93.7 and a low of $40.66. Over the same period, the stock underperformed the S&P 500 index by -3091.0%. As of April 2023, the company's 50-day average price was $61.38. Sea Limited, together with its subsidiaries, engages in the digital entertainment, e-commerce, and digital financial service businesses in Southeast Asia, Latin America, rest of Asia, and internationally. Based in Singapore, Singapore, the large-cap Consumer Discretionary company has 63,800 full time employees. Sea has not offered a regular dividend during the last year.
The Company Has a Positive Net Current Asset Value:
| 2019-03-01 | 2020-04-14 | 2021-04-16 | 2022-04-22 | |
|---|---|---|---|---|
| Revenue (MM) | $4,376 | $2,175 | $4,376 | $9,955 |
| Gross Margins | 30.8% | 27.8% | 30.8% | 39.1% |
| Operating Margins | -29.8% | -41.0% | -29.8% | -15.9% |
| Net Margins | -36.98% | -67.24% | -36.98% | -20.56% |
| Net Income (MM) | -$1,618 | -$1,463 | -$1,618 | -$2,047 |
| Net Interest Expense (MM) | -$123 | -$14 | -$123 | -$103 |
| Depreciation & Amort. (MM) | -$79 | -$122 | -$181 | -$279 |
| Earnings Per Share | -$4.78 | -$3.35 | -$3.39 | -$1.76 |
| EPS Growth | n/a | 29.92% | -1.19% | 48.08% |
| Diluted Shares (MM) | 338 | 437 | 477 | 569 |
| Free Cash Flow (MM) | -$318 | $316 | $911 | $1,015 |
| Capital Expenditures (MM) | -$178 | -$246 | -$355 | -$807 |
| Net Current Assets (MM) | $359 | $1,904 | $1,903 | $3,804 |
| Current Ratio | 1.87 | 1.93 | 1.91 | 2.09 |
| Long Term Debt (MM) | $1,357 | $1,840 | $1,842 | $3,483 |
| LT Debt to Equity | 1.16 | 0.54 | 0.54 | 0.47 |
Sea benefits from growing revenues and increasing reinvestment in the business, a pattern of improving cash flows, and an excellent current ratio. The company's financial statements show healthy debt levels and a strong EPS growth trend. However, the firm suffers from slimmer gross margins than its peers and consistently negative margins with a positive growth rate.
Sea does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $2.44, the company has a forward P/E ratio of 25.2. In comparison, the average P/E ratio for the Consumer Discretionary sector is 22.33. Furthermore, Sea is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.88 is higher than the sector average of 3.12. Overall, Sea's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.
There's an Analyst Consensus of Strong Upside Potential for Sea:
The 25 analysts following Sea have set target prices ranging from $65.0 to $140.0 per share, for an average of $94.22 with a buy rating. As of April 2023, the company is trading -34.9% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
The largest shareholder is Capital Research Global Investors, whose 8% stake in the company is worth $2,672,374,120.
