The Analyst Landscape: 10 Takes On Sea

Sea SE has been analyzed by 10 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $84.3, a high estimate of $96.00, and a low estimate of $69.00. Marking an increase of 8.86%, the current average surpasses the previous average price target of $77.44.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of Sea by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Sea. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sea compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Sea's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Sea's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Sea analyst ratings.

Discovering Sea: A Closer Look

Sea operates Southeast Asia's largest e-commerce company, Shopee, in terms of gross merchandise value and number of transactions. Sea started as a gaming business, Garena, but in 2015 expanded into e-commerce, which is now the main growth driver. Shopee is a hybrid C2C and B2C marketplace platform operating in eight core markets. Indonesia accounts for 35% of GMV, with the rest split mainly among Taiwan, Vietnam, Thailand, Malaysia, and the Philippines. For Garena, Free Fire was the most downloaded game in January 2022 and accounted for 74% of gaming revenue in 2021. Sea's third business, SeaMoney, provides lending and we foresee it becoming a larger part of the entire busines in the long term as its loan book has grown to $3.5 billion in 2024.

Key Indicators: Sea's Financial Health

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Over the 3 months period, Sea showcased positive performance, achieving a revenue growth rate of 22.97% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.

Net Margin: Sea's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 2.15%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Sea's ROE excels beyond industry benchmarks, reaching 1.21%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.42%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Sea's debt-to-equity ratio is below the industry average. With a ratio of 0.62, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Core of Analyst Ratings: What Every Investor Should Know

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.