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Sea Limited stock analysis. Ticker: $SE

Sea Limited reported earnings on Monday and the stock gained about 10% taking the market cap to 33 billion dollars. With 5.3 billion of cash and 3.4 billion of debt, the enterprise value is 31.2 billion. And Sea also has 4 billion of investments that it can access if necessary.

Revenue over the last 12 months comes to just over 13 billion dollars with 163 million of net income and 1.2 billion of EBITDA. But to better understand Sea Limited, its useful to look at the company’s individual parts. Because Sea Limited is made up of 3 businesses in one; ecommerce platform Shopee, finance platform SeaMoney and video game developer Garena.

Last year, Shopee brought in 9 billion of revenue with minus 214 million of adjusted ebitda. Sea Money brought in 1.8 billion of revenue with 550 million of adjusted EBITDA. And Garena brought in 2.2 billion of revenue with 921 million of adjusted ebitda. In terms of growth, Shopee was up 24%, Sea Money grew 44% while Garena fell 44%.

So you can see that SEA operates 3 very different businesses. Shopee brings in the most revenue but it’s also the least profitable. Garena has the highest margin but its seeing negative growth while Sea Money is the smallest, but it's also the fastest growing.

One way to value Sea Limited is to apply appropriate multiples for each business.

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