Sea Limited American Depositary Shares each representing one Class A Ordinary Share (SE)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Sea Limited is a three-legged consumer-technology business: Shopee in e-commerce, Garena in games, and a digital-financial-services arm. The network effects of marketplace and fintech can create a moat, but competition in Southeast Asia and Latin America is brutal, and gaming is hit-driven. In the latest reported fiscal second quarter of 2026, revenue was $7.8B and net income was $440.8M, a 5.66% net margin—real profit, but thin. Over the period covered by the provided data, revenue grew 38.41% and profit grew 67.33%, which is impressive if sustainable. Financial health is mixed: D/E is 0.32 and trailing free cash flow is $4.7B, a 9.3% FCF yield by FairStock's calculation at the 2026-10-13 close. However, FairStock's ROCE is 4.97%, Altman Z is 1.96, and Piotroski is 6/9—not a fortress balance sheet, but not broken. Valuation is the rub. At $95.93, FairStock calculates P/E 37.04, P/B 4.73, EV/EBITDA 20.60, and PEG 0.55. The Graham Number is $35.05, leaving a margin of safety of -173.69%, so the price is far above asset-and-earnings-based value. The 52-week range of $77.05-$175.80 and beta of 1.52 signal volatility. FairStock assigns no Lynch category because only 0 years of filed results are available against the needed three. I see a good growth engine, improving cash generation, and a valuation that already discounts much success. I would want a wider margin of safety before calling it a classic Graham bargain.

In plain English: Sea Limited runs online shopping, video games, and digital financial services, mainly in Southeast Asia and Latin America. The business is growing quickly and generating cash, but its profit margin is thin and the current share price looks expensive against several old-school value measures. Overall, it is a fast-growing but richly priced company with meaningful risks.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer