Sea Limited Stock Fair Value – SEA LIMITED Reports Third Quarter Earnings for Fiscal Year 2023
December 10, 2023
🌧️Earnings Overview
SEA LIMITED ($NYSE:SE) reported their earnings results for the third quarter of fiscal year 2023, which ended on September 30 2023. Their total revenue saw a 4.9% increase from the same period of the previous year to USD 3310.2 million. Net income also improved from -569.3 million in the previous year to -144.0 million.
Price History
Despite positive news in their overall financial performance, investors reacted negatively to the report and brought down the stock price of SEA LIMITED significantly. At the start of trading, the stock opened at $42.2 but closed at $35.9, a 22.1% plunge from the prior closing price of 46.0. This marked the worst day for the company’s share prices in months and highlighted investors’ uneasiness with the company’s future prospects. 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 |
| 12.9k | 687.26 | 7.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sea Limited. More…
| Operations | Investing | Financing |
| 2.12k | -4.7k | -331.08 |
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 |
| 18.03k | 11.45k | 11.37 |
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 |
| 53.2% | – | 6.8% |
| FCF Margin | ROE | ROA |
| 8.9% | 8.4% | 3.0% |
Analysis – Sea Limited Stock Fair Value
GoodWhale recently conducted an analysis of SEA LIMITED’s wellbeing, and using our proprietary Valuation Line, we estimated the fair value of its shares to be around $209.8. This was based on a range of criteria, including revenue projections and the current performance of the company. However, SEA LIMITED stock is currently trading at just $35.9, significantly undervalued by 82.9%. This indicates that there may be an opportunity for investors to purchase the stock at its current low price and benefit from a potential upside when it returns to its fair value. With that said, it’s important to consider the risks associated with investing in any stock and take into account all relevant information before making an investment decision. More…
Peers
Sea Ltd is a gaming company that operates in various countries. Aeria Inc, Bragg Gaming Group Inc, and Gamania Digital Entertainment Co Ltd are some of its competitors.
– Aeria Inc ($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 reported its earnings results for the third quarter of fiscal year 2023, showing a 4.9% increase in total revenue to USD 3310.2 million and a USD -144.0 million net income, an improvement from the prior year’s figure of -569.3 million. Despite the company’s improved earnings, the stock price dropped the same day, likely due to investor concerns about SEA’s ability to maintain the strong growth it has seen in recent quarters. Analysts may want to keep an eye on the company’s strategy for future quarters, as any changes could affect investor confidence.
