Demystifying Sea: Insights From 4 Analyst Reviews

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on Sea SE in the last three months.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Sea, revealing an average target of $153.75, a high estimate of $160.00, and a low estimate of $148.00. This upward trend is apparent, with the current average reflecting a 17.14% increase from the previous average price target of $131.25.

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Sea. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sea. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sea compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Sea's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Sea's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Sea analyst ratings.

Unveiling the Story Behind Sea

Sea started as a gaming business, Garena, but in 2015 expanded into e-commerce. Sea operates Southeast Asia's largest e-commerce company, Shopee, in terms of gross merchandise value. Shopee is a hybrid C2C and B2C marketplace platform operating in Indonesia, Taiwan, Vietnam, Thailand, Malaysia, the Philippines, and Brazil. For Garena, Free Fire is the key revenue generating game. Sea's third business, SeaMoney, provides lending, payment, digital banking, and insurance services.As of March 31, 2024, Forrest Xiaodong Li, the founder, chairman and CEO, owned 59.8% of voting power and 18.5% of issued shares. Tencent owned 18.2% of issued shares with no voting power.

Sea: A Financial Overview

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Sea displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 30.76%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: Sea's net margin is impressive, surpassing industry averages. With a net margin of 3.54%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Sea's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.07%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.74%, the company showcases effective utilization of assets.

Debt Management: Sea's debt-to-equity ratio is below the industry average at 0.56, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.