SEA LTD-ADR (SE) Stock Fundamental Analysis
NYSE:SE - New York Stock Exchange, Inc. - US81141R1005 - ADR - Currency: USD
SE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 72 industry peers in the Entertainment industry. SE has an excellent financial health rating, but there are some minor concerns on its profitability. SE is not overvalued while it is showing excellent growth. This is an interesting combination. This makes SE very considerable 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.
SE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.96%, SE is doing good in the industry, outperforming 70.83% of the companies in the same industry.
The Return On Equity of SE (5.31%) is better than 76.39% of its industry peers.
SE has a Return On Invested Capital of 3.41%. This is in the better half of the industry: SE outperforms 68.06% of its industry peers.
| 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 has a better Profit Margin (2.64%) than 72.22% of its industry peers.
Looking at the Operating Margin, with a value of 3.94%, SE is in the better half of the industry, outperforming 68.06% of the companies in the same industry.
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
SE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SE has less shares outstanding than it did 1 year ago.
SE has more shares outstanding than it did 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 4.36. This indicates that SE is financially healthy and has little risk of bankruptcy at the moment.
SE's Altman-Z score of 4.36 is fine compared to the rest of the industry. SE outperforms 76.39% of its industry peers.
The Debt to FCF ratio of SE is 1.93, which is an excellent value as it means it would take SE, only 1.93 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SE (1.93) is better than 79.17% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that SE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, SE perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
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 | 4.36 |
ROIC/WACC0.4
WACC8.56%
2.3 Liquidity
A Current Ratio of 1.49 indicates that SE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.49, SE is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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.
The Quick ratio of SE (1.48) is better than 69.44% 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 99.99% on average per year.
Based on estimates for the next years, SE will show a quite strong growth in Revenue. The Revenue will grow by 16.90% on average per year.
EPS Next Y324.98%
EPS Next 2Y157.12%
EPS Next 3Y99.99%
EPS Next 5YN/A
Revenue Next Year28.02%
Revenue Next 2Y24.1%
Revenue Next 3Y20.69%
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
SE is valuated quite expensively with a Price/Earnings ratio of 105.26.
SE's Price/Earnings ratio is a bit cheaper when compared to the industry. SE is cheaper than 65.28% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. SE is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 30.97, the valuation of SE can be described as expensive.
SE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SE is cheaper than 69.44% of the companies in the same industry.
SE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 105.26 | ||
| Fwd PE | 30.97 |
4.2 Price Multiples
SE's Enterprise Value to EBITDA is on the same level as the industry average.
SE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SE is cheaper than 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.94 | ||
| EV/EBITDA | 71.67 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SE's earnings are expected to grow with 99.99% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y157.12%
EPS Next 3Y99.99%
5. Dividend
5.1 Amount
SE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
149.47
+0.05 (+0.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners66.95%
Inst Owner Change11.79%
Ins Owners7.52%
Ins Owner Change0%
Market Cap88.49B
Analysts82.5
Price Target180.85 (20.99%)
Short Float %4.59%
Short Ratio4.32
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)13.85%
PT rev (3m)33.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.29%
EPS NY rev (1m)7.36%
EPS NY rev (3m)23.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)4.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 105.26 | ||
| Fwd PE | 30.97 | ||
| P/S | 5.26 | ||
| P/FCF | 29.94 | ||
| P/OCF | 27 | ||
| P/B | 10.57 | ||
| P/tB | 10.74 | ||
| EV/EBITDA | 71.67 |
EPS(TTM)1.42
EY0.95%
EPS(NY)4.83
Fwd EY3.23%
FCF(TTM)4.99
FCFY3.34%
OCF(TTM)5.54
OCFY3.7%
SpS28.41
BVpS14.14
TBVpS13.91
PEG (NY)0.32
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 | 4.36 |
F-Score7
WACC8.56%
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 Y324.98%
EPS Next 2Y157.12%
EPS Next 3Y99.99%
EPS Next 5YN/A
Revenue 1Y (TTM)30.31%
Revenue growth 3Y19.1%
Revenue growth 5Y50.55%
Sales Q2Q%29.64%
Revenue Next Year28.02%
Revenue Next 2Y24.1%
Revenue Next 3Y20.69%
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%