Core Viewpoint - Sea Limited is a leading player in the digital economy with significant growth in e-commerce, digital financial services, and digital entertainment, showcasing strong revenue growth and profitability despite being below its all-time high stock price [1][2][10]. E-commerce Segment - Shopee, Sea's e-commerce platform, is the largest in Southeast Asia, with over 10.9 billion orders placed and 100.5billionspentinthelastyear[3].−ThecompanyhasimprovedShopee′sefficiency,withnearlyhalfofallordersdeliveredintwodaysorless,resultinginlowercostsperorder[4].−Revenuefromthee−commercesegmentgrew41.33.7 billion in Q4 2024, contributing significantly to the overall revenue [9]. Digital Financial Services - SeaMoney, the digital financial services platform, had 26 million active users at the end of 2024, a 60% increase year-over-year, and a loan book that grew 64% to 5.1billion[6].−Theplatformoffersmerchantloansandbuynow,paylateroptions,enhancingspendingcapabilitiesforbothsellersandconsumers[5].DigitalEntertainment−Sea′sdigitalentertainmentsegment,ledbytheGarenagamestudio,saw618millionquarterlyactiveusersinQ42024,a16.9519.1 million in Q4 2024, despite earlier declines [9]. Financial Performance - Sea generated 5.0billionintotalrevenueinQ42024,markinga36.916.8 billion, up 28.8%, with operating expenses increasing only 16.7% to 6.5billion,allowingnetincometogrow175447.8 million [10][11]. - The company maintains a strong balance sheet with $10.4 billion in cash and equivalents, enabling further investment in growth [15]. Valuation and Market Position - Sea's price-to-sales (P/S) ratio has decreased to 4.9, a 47% discount to its average of 9.3 since going public, making the stock more attractive [14]. - Despite recent gains, the stock remains a value opportunity, supported by strong fundamentals and potential for further growth [16].
Sea(SE) The Motley Fool·2025-03-13 08:10