(SE) Sea - Ratings and Ratios

Sea Limited is a multifaceted consumer internet company operating across Southeast Asia, Latin America, and other parts of Asia, with a presence that extends globally. The companys diverse portfolio is segmented into e-commerce, digital financial services, and digital entertainment. At the heart of its digital entertainment segment is Garena, a platform that not only hosts a variety of mobile and PC online games but also promotes eSports and develops its own games, catering to a vast and engaged user base.

The e-commerce arm, Shopee, stands out as a mobile-centric marketplace that has integrated payments, logistics, and seller services, making it a one-stop solution for both buyers and sellers. This comprehensive approach has enabled Shopee to become a significant player in the regions it operates in, serving a wide range of customers from individuals and households to small and medium businesses, brands, and large retailers.

In the digital financial services segment, SeaMoney offers a broad spectrum of services including consumer and SME credit, mobile wallets, payment processing, banking, and insurtech services under the SPayLater brand. Additionally, it underwrites various life and non-life insurance products under the SeaInsure brand and provides insurance agency services, further diversifying its revenue streams and deepening its penetration into the financial services market.

From a technical standpoint, SEs stock has shown resilience with a last price of $160.37, positioned above its SMA20 at $155.25 and significantly above its SMA50 and SMA200, indicating a strong upward trend. The Average True Range (ATR) of 5.22, or 3.26%, suggests moderate volatility. With support levels at $138.4, $131.1, and further down at $123.8, $116.4, $104.9, and $96.9, there are multiple layers of support that could potentially cushion the stock against significant downturns.

Fundamentally, Sea Limited boasts a market capitalization of $97.13 billion USD, with a P/E ratio of 114.73 and a forward P/E of 64.94, indicating high growth expectations. The Return on Equity (RoE) stands at 9.00%, suggesting that the company is generating profits from its equity, albeit with room for improvement. Given its diversified business model and the growth potential in its operating regions, Sea Limited is poised for continued expansion.

Forecasting the future performance of SE involves considering both its technical and fundamental data. With the stock currently above its moving averages and a 52-week high not far away at $165.24, theres potential for further upside if the company continues to execute its growth strategy effectively. The support levels provide a buffer against potential downturns, and with a strong RoE and a significant market cap, theres underlying strength. However, the high P/E ratios indicate that the stocks price already reflects high expectations, so any disappointment in earnings or guidance could lead to a correction. As such, a cautious optimism is warranted, with a potential target above $165.24 if the companys fundamentals continue to improve and technical indicators remain positive.