Sea Limited Stock Fair Value Calculation – SEA LIMITED Reports FY2023 Q2 Earnings Results as of June 30, 2023
August 17, 2023
🌧️Earnings Overview
On August 15 2023, SEA LIMITED ($NYSE:SE) announced its earnings results for the second quarter of fiscal year 2023 ended June 30 2023. Total revenue for the quarter was USD 3095.7 million, representing an increase of 5.2% from the same period in the previous fiscal year. Net income for the quarter was USD 321.6 million, showing a year-over-year growth of 134.5%.
Price History
On Tuesday, SEA LIMITED reported their FY2023 Q2 earnings results as of June 30th, 2023. The results sent shockwaves through the stock market as the stock opened at $45.1 and closed at $40.6, a plunge of 28.7% from its last closing price of 56.9. This was a startling drop for SEA LIMITED as the stock had been performing well in the previous quarter, with a steady increase in share price. Analysts attribute the decline to a number of factors, including decreased profits due to the pandemic and increasing competition in the technology sector.
Furthermore, investors have been wary of SEA LIMITED’s large debt load and are unsure if the company can sustain its current growth rate. Clearly, SEA LIMITED still has some work to do in order to restore investor confidence and prove that they can weather the current market conditions. The company will need to focus on improving earnings and reducing debt in order to ensure that it continues to perform well and remain competitive in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sea Limited. More…
| Total Revenues | Net Income | Net Margin |
| 12.74k | 271.18 | 3.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sea Limited. More…
| Operations | Investing | Financing |
| 1.35k | -4.22k | 18.46 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sea Limited. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.65k | 11.03k | 11.45 |
Key Ratios Snapshot
Some of the financial key ratios for Sea Limited are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 62.2% | – | 3.6% |
| FCF Margin | ROE | ROA |
| 3.0% | 4.5% | 1.6% |
Analysis – Sea Limited Stock Fair Value Calculation
GoodWhale recently performed an analysis of SEA LIMITED‘s wellbeing. After examining the company’s financial statements, we have estimated that the intrinsic value of SEA LIMITED share is around $245.6, calculated by our proprietary Valuation Line. Compared to the current market price of $40.6, it is undervalued by 83.5%. This suggests that investors may have the opportunity to purchase SEA LIMITED at a significant discount. We are currently further studying the company’s fundamentals and developments to understand the true value of their shares. More…
Peers
Sea Ltd is a gaming company that operates in various countries. Aeria Inc, Bragg Gaming Group Inc, and Gamania Digital Entertainment Co Ltd are some of its competitors.
– Aeria Inc ($TSE:3758)
Aeria Inc is a global publisher of online games. The company was founded in 2006 and is headquartered in Santa Clara, California. Aeria Inc has a market cap of 10.01B as of 2022, a Return on Equity of 3.69%. The company’s games are free-to-play and available online, on mobile devices, and through social networking sites. Aeria Inc’s portfolio includes popular massively multiplayer online games such as Alliance of Valiant Arms, Eden Eternal, Aura Kingdom, and Twin Saga. The company also publishes mobile games such as Big Bang Empire and Game of Dice. In addition to game publishing, Aeria Inc operates an online gaming portal, aeriaGames.com, which offers a variety of casual and social games.
– Bragg Gaming Group Inc ($TSX:BRAG)
Bragg Gaming Group Inc is a Canadian online gaming company. The company operates in the online gambling and gaming industry. It offers online gaming products and services to customers in Europe, Australia, and North America. The company’s products and services include online casino, sports betting, and horse racing. Bragg Gaming Group Inc is headquartered in Toronto, Canada.
– Gamania Digital Entertainment Co Ltd ($TPEX:6180)
Gamania Digital Entertainment Co Ltd has a market cap of 9.35B as of 2022, a Return on Equity of 20.25%. The company is a Taiwanese digital entertainment company that operates online games, online video, and other digital content platforms. The company’s flagship product is Gash Point, an online game platform that offers a variety of games for gamers to play. The company also operates a number of other online game platforms, including Gamania Games, which offers a variety of online games for gamers to play; and GamaZone, which offers a variety of online video content for gamers to watch.
Summary
SEA Limited (SE:SEA) reported strong financial results for the second quarter of FY2023 on August 15, 2023, with total revenue of USD 3095.7 million, up 5.2% from the same period a year before. Net income was USD 321.6 million, an impressive 134.5% year-over-year increase. Despite these positive results, stocks declined the same day, suggesting investors may have been expecting even better performance.
Going forward, investors should keep an eye on the company’s continued growth in the digital payments industry and its ability to generate sustainable revenue from other business activities. Long-term investors should analyze the company’s fundamentals and prospects relative to industry peers in order to make an informed investment decision.
