Fundamentals snapshot
SE · NYQ · Consumer Cyclical · Internet Retail
Current price
$84.49
52-week range
$77.05 - $199.30
Market cap
$51.75B
One-glance verdict
Fair-value range $130.74 – $320.90 (cautious → optimistic — tap the ? for the math)
Wall Street consensus: $140.50 (-31.4% lower than our fair-value estimate)
Buy below $163.89 for a 20% safety cushion
Balance sheet
Net cash $6.96B. Interest coverage shows how many times profit covers the interest bill.
What stands out
Quick scan of the biggest positives and negatives from the detailed checklist below.
View 1 more in details ↓What this company does
Sea Limited is a technology company with three main businesses: a popular online gaming platform called Garena, an online shopping marketplace called Shopee, and a digital payments service called SeaMoney. While its Shopee online store now brings in the most sales, the company's very profitable Garena video game division (which makes more money than it costs to run) has historically funded its growth into new areas. The company's goal is to create a digital ecosystem (a network of connected services) where customers in regions like Southeast Asia can play, shop, and manage their money all within Sea's family of apps.
Sea Limited started in 2009 as a company called Garena, focused on online gaming for computers and mobile devices. A major turning point was securing the rights to publish the popular game 'League of Legends' in Southeast Asia, which helped it grow quickly. Seeing an opportunity, the company expanded into e-commerce (the business of buying and selling things online) by launching 'Shopee' in 2015 and into digital payments with 'SeaMoney' in 2014. To better reflect its diverse businesses, the parent company rebranded as Sea Limited in 2017 and became a publicly traded company on the New York Stock Exchange. After a period of spending heavily to grow, the company has more recently focused on becoming profitable, which it achieved for the first time for a full year in 2023.
Sea Limited is a technology company that operates three main businesses primarily in Southeast Asia and Latin America. Think of it as a digital ecosystem with three interconnected parts: a platform for online shopping, a service for digital payments and loans, and a division for online games. Many people might recognize its online shopping app, Shopee, which is similar to Amazon, or its popular mobile game, Free Fire. The company's goal is to have users engage with its different services, like playing a game, buying something on its shopping platform, and then using its payment service to complete the transaction.
This is Sea's online shopping platform, where people and businesses can buy and sell a wide variety of items, much like Amazon or eBay. It's the company's largest business, making up the majority of its revenue (the total money it brings in). Shopee makes money by charging sellers fees for transactions, offering paid advertising to help sellers promote their products, and providing logistics services (help with shipping and delivery). While it started by connecting individual sellers with buyers, it now also sells some products directly to consumers.
Garena is the company's original business and focuses on online games for mobile phones and computers. It develops its own games, with its biggest hit being 'Free Fire', a very popular game worldwide. Garena uses a 'freemium' model, which means the games are free to download and play, but it makes money by selling virtual items that players can buy to enhance their game, like character outfits or special equipment. While it's not the largest part of the company by revenue anymore, this segment has historically been very profitable and has helped fund the growth of the other businesses.
Previously known as SeaMoney, this is the company's fast-growing financial technology (or 'fintech') arm. It offers services like mobile wallets (letting you pay with your phone), payment processing for online and offline stores, and credit services for both consumers and small businesses. For example, a shopper on Shopee can use 'SPayLater' to buy something now and pay for it over time. Monee makes money by charging fees for its payment services and earning interest on the loans it provides.
The company's main focus is on achieving profitable growth across all its businesses, after a period of spending heavily to gain more users. A key priority is to make its e-commerce platform, Shopee, more profitable by increasing the fees it charges sellers and selling more ads. They are also heavily focused on expanding their digital financial services through Monee, seeing it as a major future growth engine, especially in lending. Additionally, Sea is continuing to expand its presence in international markets, particularly in Latin America with Brazil being a key area of growth for Shopee.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
Wall Street consensus is the average analyst price target: $140.50 (-31.4% lower than our fair-value estimate).
Buy below $163.89 for a 20% safety cushion. That means buying at least 20% below our fair value, as a buffer in case our estimate turns out too rosy.
Our most-likely fair value is $204.86 a share — about 142.5% above today's price of $84.49, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Net cash $7.0B - more cash than debt. Interest coverage 59.1x.
Sea Limited's profit covers its interest bill about 59.1 times over. which is stronger than every peer shown here.
Total debt $3.58B Interest coverage 59.07x This is the baseline the peer rows are being compared against.
Total debt $12.38B Interest coverage 20.01x -66% vs SE Carries about 3.0x less debt cushion than SE.
Total debt $5.40B Interest coverage 5.50x -91% vs SE Carries about 10.7x less debt cushion than SE.
Total debt $1.95B Interest coverage 3.13x -95% vs SE Carries about 18.9x less debt cushion than SE.
What you should know
The numbers
Tap any ? icon to learn what it means.
Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know