SEA LTD-ADR (SE) Stock Fundamental Analysis
NYSE:SE - New York Stock Exchange, Inc. - US81141R1005 - ADR - Currency: USD
Overall SE gets a fundamental rating of 6 out of 10. We evaluated SE 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make SE a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
SE had positive earnings in the past year.
SE had a positive operating cash flow in the past year.
In multiple years SE reported negative net income over the last 5 years.
SE had a positive operating cash flow in 4 of the past 5 years.
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 69.44% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.31%, SE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Return On Invested Capital of SE (3.41%) is better than 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
The Profit Margin of SE (2.64%) is better than 70.83% 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 comparable to the rest of the 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.
The number of shares outstanding for SE has been reduced compared to 1 year ago.
SE has more shares outstanding than it did 5 years ago.
SE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.40 indicates that SE is not in any danger for bankruptcy at the moment.
The Altman-Z score of SE (4.40) is better than 77.78% of its industry peers.
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.
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.
SE has a Debt/Equity ratio of 0.68. This is a neutral value indicating 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 44.44% 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 | 4.4 |
ROIC/WACC0.39
WACC8.69%
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.
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.
Looking at the Quick ratio, with a value of 1.48, SE is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
| 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.
The Revenue has grown by 30.31% in the past year. This is a very strong growth!
SE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 50.55% yearly.
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 100.20% yearly.
SE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.90% yearly.
EPS Next Y315.91%
EPS Next 2Y152.2%
EPS Next 3Y100.2%
EPS Next 5YN/A
Revenue Next Year28.03%
Revenue Next 2Y24.15%
Revenue Next 3Y20.83%
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
A Price/Earnings ratio of 111.45 indicates a quite expensive valuation of SE.
Based on the Price/Earnings ratio, SE is valued a bit cheaper than the industry average as 65.28% of the companies are valued more expensively.
SE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.51.
With a Price/Forward Earnings ratio of 34.09, SE can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, SE is valued a bit cheaper than the industry average as 68.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, SE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 111.45 | ||
| Fwd PE | 34.09 |
4.2 Price Multiples
SE's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SE is valued a bit cheaper than the industry average as 68.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.7 | ||
| EV/EBITDA | 72.6 |
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 100.20% in the coming years.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y152.2%
EPS Next 3Y100.2%
5. Dividend
5.1 Amount
SE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
158.26
+7.14 (+4.72%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners66.95%
Inst Owner Change0.01%
Ins Owners7.52%
Ins Owner Change0%
Market Cap93.69B
Analysts82.5
Price Target180.85 (14.27%)
Short Float %5.08%
Short Ratio4.78
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)1.34%
PT rev (3m)12.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)5.07%
EPS NY rev (3m)13.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 111.45 | ||
| Fwd PE | 34.09 | ||
| P/S | 5.57 | ||
| P/FCF | 31.7 | ||
| P/OCF | 28.59 | ||
| P/B | 11.19 | ||
| P/tB | 11.37 | ||
| EV/EBITDA | 72.6 |
EPS(TTM)1.42
EY0.9%
EPS(NY)4.64
Fwd EY2.93%
FCF(TTM)4.99
FCFY3.15%
OCF(TTM)5.54
OCFY3.5%
SpS28.41
BVpS14.14
TBVpS13.91
PEG (NY)0.35
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 | 4.4 |
F-Score7
WACC8.69%
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 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 Year28.03%
Revenue Next 2Y24.15%
Revenue Next 3Y20.83%
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%