SEA LTD-ADR (SE) Stock Fundamental Analysis
NYSE:SE - New York Stock Exchange, Inc. - US81141R1005 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to SE. SE was compared to 73 industry peers in the Entertainment industry. SE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SE is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make SE suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year SE was profitable.
In the past year SE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SE reported negative net income in multiple years.
Of the past 5 years SE 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.96%, SE is in the better half of the industry, outperforming 69.86% of the companies in the same industry.
SE's Return On Equity of 5.31% is fine compared to the rest of the industry. SE outperforms 75.34% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.41%, SE is in the better half of the industry, outperforming 68.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 5.31% | ||
| ROIC | 3.41% |
ROA(3y)-2.32%
ROA(5y)-6.67%
ROE(3y)-7.1%
ROE(5y)-19.36%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SE's Profit Margin of 2.64% is fine compared to the rest of the industry. SE outperforms 71.23% of its industry peers.
SE's Operating Margin of 3.94% is fine compared to the rest of the industry. SE outperforms 68.49% of its industry peers.
SE has a Gross Margin (42.84%) which is in line with its industry peers.
In the last couple of years the Gross Margin of SE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.94% | ||
| PM (TTM) | 2.64% | ||
| GM | 42.84% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.06%
GM growth 5Y9.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SE is destroying value.
The number of shares outstanding for SE has been reduced compared to 1 year ago.
The number of shares outstanding for SE has been increased compared to 5 years ago.
Compared to 1 year ago, SE has an improved debt to assets ratio.
2.2 Solvency
SE has an Altman-Z score of 4.41. This indicates that SE is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.41, SE is doing good in the industry, outperforming 79.45% of the companies in the same industry.
SE has a debt to FCF ratio of 1.93. This is a very positive value and a sign of high solvency as it would only need 1.93 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.93, SE is in the better half of the industry, outperforming 78.08% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that SE is somewhat dependend on debt financing.
SE has a Debt to Equity ratio of 0.68. This is comparable to the rest of the industry: SE outperforms 45.21% of its industry peers.
Although SE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 4.41 |
ROIC/WACC0.4
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.49 indicates that SE should not have too much problems paying its short term obligations.
The Current ratio of SE (1.49) is better than 67.12% of its industry peers.
SE has a Quick Ratio of 1.48. This is a normal value and indicates that SE is financially healthy and should not expect problems in meeting its short term obligations.
SE's Quick ratio of 1.48 is fine compared to the rest of the industry. SE outperforms 69.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
SE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 2740.00%, which is quite impressive.
Looking at the last year, SE shows a very strong growth in Revenue. The Revenue has grown by 30.31%.
Measured over the past years, SE shows a very strong growth in Revenue. The Revenue has been growing by 50.55% on average per year.
EPS 1Y (TTM)2740%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1725%
Revenue 1Y (TTM)30.31%
Revenue growth 3Y19.1%
Revenue growth 5Y50.55%
Sales Q2Q%29.64%
3.2 Future
Based on estimates for the next years, SE will show a very strong growth in Earnings Per Share. The EPS will grow by 100.20% on average per year.
The Revenue is expected to grow by 16.90% on average over the next years. This is quite good.
EPS Next Y315.91%
EPS Next 2Y152.2%
EPS Next 3Y100.2%
EPS Next 5YN/A
Revenue Next Year28.17%
Revenue Next 2Y24.31%
Revenue Next 3Y20.95%
Revenue Next 5Y16.9%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 103.90, the valuation of SE can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SE indicates a somewhat cheap valuation: SE is cheaper than 63.01% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.99. SE is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 31.78, the valuation of SE can be described as expensive.
Based on the Price/Forward Earnings ratio, SE is valued a bit cheaper than the industry average as 67.12% of the companies are valued more expensively.
SE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 103.9 | ||
| Fwd PE | 31.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SE is on the same level as its industry peers.
69.86% of the companies in the same industry are more expensive than SE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.55 | ||
| EV/EBITDA | 72.78 |
4.3 Compensation for Growth
SE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SE's earnings are expected to grow with 100.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y152.2%
EPS Next 3Y100.2%
5. Dividend
5.1 Amount
No dividends for SE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
147.54
-3.9 (-2.58%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners66.95%
Inst Owner Change-6.79%
Ins Owners7.52%
Ins Owner Change0%
Market Cap87.35B
Analysts82.5
Price Target180.85 (22.58%)
Short Float %5.21%
Short Ratio5.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.17%
Min EPS beat(2)-12.96%
Max EPS beat(2)-9.38%
EPS beat(4)0
Avg EPS beat(4)-29.32%
Min EPS beat(4)-72.6%
Max EPS beat(4)-9.38%
EPS beat(8)2
Avg EPS beat(8)-127.68%
EPS beat(12)5
Avg EPS beat(12)-72.4%
EPS beat(16)5
Avg EPS beat(16)-63.59%
Revenue beat(2)2
Avg Revenue beat(2)3.54%
Min Revenue beat(2)3.1%
Max Revenue beat(2)3.98%
Revenue beat(4)3
Avg Revenue beat(4)2.11%
Min Revenue beat(4)-0.37%
Max Revenue beat(4)3.98%
Revenue beat(8)4
Avg Revenue beat(8)0.12%
Revenue beat(12)7
Avg Revenue beat(12)0.92%
Revenue beat(16)10
Avg Revenue beat(16)2.13%
PT rev (1m)0%
PT rev (3m)13.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.17%
EPS NY rev (1m)-2.13%
EPS NY rev (3m)12.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 103.9 | ||
| Fwd PE | 31.78 | ||
| P/S | 5.19 | ||
| P/FCF | 29.55 | ||
| P/OCF | 26.65 | ||
| P/B | 10.43 | ||
| P/tB | 10.6 | ||
| EV/EBITDA | 72.78 |
EPS(TTM)1.42
EY0.96%
EPS(NY)4.64
Fwd EY3.15%
FCF(TTM)4.99
FCFY3.38%
OCF(TTM)5.54
OCFY3.75%
SpS28.41
BVpS14.14
TBVpS13.91
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 5.31% | ||
| ROCE | 5.84% | ||
| ROIC | 3.41% | ||
| ROICexc | 7.81% | ||
| ROICexgc | 7.97% | ||
| OM | 3.94% | ||
| PM (TTM) | 2.64% | ||
| GM | 42.84% | ||
| FCFM | 17.57% |
ROA(3y)-2.32%
ROA(5y)-6.67%
ROE(3y)-7.1%
ROE(5y)-19.36%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.06%
GM growth 5Y9.02%
F-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 1.93 | ||
| Debt/EBITDA | 5.44 | ||
| Cap/Depr | 82.53% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 4.58 | ||
| Cash Conversion | 311.59% | ||
| Profit Quality | 665.25% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 4.41 |
F-Score7
WACC8.47%
ROIC/WACC0.4
Cap/Depr(3y)123.02%
Cap/Depr(5y)171.16%
Cap/Sales(3y)3.91%
Cap/Sales(5y)5.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2740%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1725%
EPS Next Y315.91%
EPS Next 2Y152.2%
EPS Next 3Y100.2%
EPS Next 5YN/A
Revenue 1Y (TTM)30.31%
Revenue growth 3Y19.1%
Revenue growth 5Y50.55%
Sales Q2Q%29.64%
Revenue Next Year28.17%
Revenue Next 2Y24.31%
Revenue Next 3Y20.95%
Revenue Next 5Y16.9%
EBIT growth 1Y93.23%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year441.36%
EBIT Next 3Y106.12%
EBIT Next 5Y67.37%
FCF growth 1Y62.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y57.59%
OCF growth 3Y150.46%
OCF growth 5Y115.88%