Why SEA LTD-ADR (NYSE:SE) could fit Mark Minervini’s high-growth criteria

Our stock screener has spotted SEA LTD-ADR (NYSE:SE) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

Minervini Trend Template Analysis.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for SE:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Assessing Growth for SE

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. SE has achieved a 7 out of 10:

Explosive Earnings Growth

• The EPS of SE has exhibited growth from one quarter to another (Q2Q), with a 305.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• Accelerating EPS growth for SE: the current Q2Q growth of 305.0% exceeds the previous quarter Q2Q growth of 192.0%.
• Sales growth accelerated for 3 quarters in a row.
• The 1-year EPS growth of SE (204.0%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• The recent q2q revenue growth of 36.88% of SE showcases the company's ability to generate increasing revenue in a short period, reflecting its positive growth trajectory.
• SE shows accelerating Sales growth: when comparing the current Q2Q growth of 36.88% to the previous quarter Q2Q growth of 30.75%, we see the growth rate improving.
• Sales acceleration happened 3 quarters in a row.
• SE has achieved significant 1-year revenue growth of 28.75%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.

Financial Strength & Profitability

• SE has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• With a favorable trend in its profit margin over the past year, SE demonstrates its ability to enhance profitability through efficient operations.
• SE has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• At a Debt/Equity ratio of 0.68, SE seems well-positioned to sustain growth while keeping debt in check.

Market Strength & Institutional Confidence

• With institutional shareholders at 66.92%, SE demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• The Relative Strength (RS) of SE has been consistently solid, with a current 96.89 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

How does the Setup look for SE

ChartMill also provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, SE has a 3 as its setup rating:

Although SE has an excellent technical rating, it does not offer a high quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Our latest full technical report of SE contains the most current technical analsysis.

More like this

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.