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 72 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 overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make SE suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year SE was profitable.
SE had a positive operating cash flow in the past year.
In multiple years SE reported negative net income over the last 5 years.
Of the past 5 years SE 4 years had a positive operating cash flow.
1.2 Ratios
SE's Return On Assets of 1.96% is fine compared to the rest of the industry. SE outperforms 70.83% of its industry peers.
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's Profit Margin of 2.64% is fine compared to the rest of the industry. SE outperforms 72.22% of its industry peers.
The Operating Margin of SE (3.94%) is better than 68.06% of its industry peers.
Looking at the Gross Margin, with a value of 42.84%, SE is in line with its industry, outperforming 45.83% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SE is destroying value.
SE has less shares outstanding than it did 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 4.73. This indicates that SE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SE (4.73) is better than 81.94% 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.
SE has a Debt to FCF ratio of 1.93. This is in the better half of the industry: SE outperforms 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.
Even though the debt/equity ratio score it not favorable for SE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 4.73 |
ROIC/WACC0.39
WACC8.74%
2.3 Liquidity
A Current Ratio of 1.49 indicates that SE should not have too much problems paying its short term obligations.
SE has a better Current ratio (1.49) than 66.67% of its industry peers.
A Quick Ratio of 1.48 indicates that SE should not have too much problems paying its short term obligations.
SE has a better Quick ratio (1.48) 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.
SE shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.31%.
The Revenue has been growing by 50.55% on average over the past years. This is a very strong growth!
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
SE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 97.34% yearly.
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 Y295.84%
EPS Next 2Y147.33%
EPS Next 3Y97.34%
EPS Next 5YN/A
Revenue Next Year27.8%
Revenue Next 2Y23.9%
Revenue Next 3Y20.7%
Revenue Next 5Y16.9%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 110.47, which means the current valuation is very expensive for SE.
Based on the Price/Earnings ratio, SE is valued a bit cheaper than the industry average as 63.89% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.59, SE is valued quite expensively.
With a Price/Forward Earnings ratio of 35.13, SE can be considered very expensive at the moment.
63.89% of the companies in the same industry are more expensive than SE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, SE is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110.47 | ||
| Fwd PE | 35.13 |
4.2 Price Multiples
SE's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SE is valued a bit cheaper than 68.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.42 | ||
| EV/EBITDA | 80.17 |
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 97.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y147.33%
EPS Next 3Y97.34%
5. Dividend
5.1 Amount
No dividends for SE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
156.87
-7.71 (-4.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners66.92%
Inst Owner Change11.79%
Ins Owners9.18%
Ins Owner Change0%
Market Cap92.87B
Analysts82.5
Price Target178.46 (13.76%)
Short Float %4.79%
Short Ratio3.71
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)11.7%
PT rev (3m)31.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.24%
EPS NY rev (1m)7.08%
EPS NY rev (3m)15.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.46%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 110.47 | ||
| Fwd PE | 35.13 | ||
| P/S | 5.52 | ||
| P/FCF | 31.42 | ||
| P/OCF | 28.34 | ||
| P/B | 11.09 | ||
| P/tB | 11.27 | ||
| EV/EBITDA | 80.17 |
EPS(TTM)1.42
EY0.91%
EPS(NY)4.47
Fwd EY2.85%
FCF(TTM)4.99
FCFY3.18%
OCF(TTM)5.54
OCFY3.53%
SpS28.41
BVpS14.14
TBVpS13.91
PEG (NY)0.37
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 | 4.73 |
F-Score7
WACC8.74%
ROIC/WACC0.39
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 Y295.84%
EPS Next 2Y147.33%
EPS Next 3Y97.34%
EPS Next 5YN/A
Revenue 1Y (TTM)30.31%
Revenue growth 3Y19.1%
Revenue growth 5Y50.55%
Sales Q2Q%29.64%
Revenue Next Year27.8%
Revenue Next 2Y23.9%
Revenue Next 3Y20.7%
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%