To The Moon

Earnings Calendar (02Mar2026)

I am interested in the earnings of Target, CrowdStrike, Sea, Broadcom, Costco, Kroger and Kura.

Let us look at Sea Limited.

Stock Performance and Valuation

Sea Limited ended the most recent trading day with a closing price of $108.45. Reviewing the one-year price chart reveals a consistent downtrend, which has contributed to a decline of 14.8% over the past year. From a technical analysis standpoint, the recommendation is to strongly sell, reflecting the persistent negative momentum in the stock price. In contrast, analyst sentiment indicates a strong buy recommendation, with a price target set at $180.54. This target suggests a potential upside of more than 66% compared to the last closing price, raising the question of whether the stock deserves renewed consideration. Despite an earnings per share (EPS) of $2.41, Sea Limited’s price-to-earnings (P/E) ratio exceeds 57, implying that the company is trading at a premium and may be considered overpriced even at its current valuation.

Five-Year Financial Performance

Examining Sea Limited’s annual financial results over the past five years demonstrates substantial growth. For the financial year ending December 31, 2021, the company reported revenue of $9.9 billion. The trailing twelve months (TTM) figure shows total revenue rising to $21 billion, highlighting remarkable progress during this period.

Profitability Trends

Gross profit also increased significantly, with the year ending 2021 showing $3.9 billion and the TTM gross profit reaching $9.4 billion. This indicates robust and sustained growth in profitability. Operating income for 2021 reflected a $1.5 billion loss, but the TTM figure has shifted to an operating profit of $1.7 billion. Sea Limited has reported net profits for the last three financial years.

This turnaround is further evidenced by the company’s EPS, which started at -$3.84 in 2021 and has now improved to a positive $2.40 in the TTM. EPS has remained positive for the past three years, demonstrating continued earnings progress.

Current Outlook

Whether Sea Limited has reached critical mass or is optimising its revenue and managing costs more effectively, it is reassuring to observe ongoing profitability. However, the company’s valuation remains elevated, and it warrants careful monitoring moving forward.

Balance Sheet and Cash Flow Analysis

Sea Limited’s balance sheet reveals steady and significant growth in total assets over the past four years. In 2020, the company reported total assets of $10.4 billion, which increased consistently, reaching $22.6 billion in 2024. This upward trend in assets is mirrored by the company’s current liabilities, which rose from $4.6 billion in 2020 to $11.2 billion in 2024, indicating an expansion in the scale of operations and obligations over this period.

Examining Sea Limited’s cash flow statements, cash flow from operations has demonstrated robust growth, rising from $555 million in 2020 to $3.2 billion in 2024. This improvement suggests enhanced efficiency in generating cash from core business activities. However, the company’s cash flow from investing activities has experienced a significant drawdown, moving from $555 million in 2020 to $5 billion in 2024, which may reflect substantial investments in future growth or capital expenditures. On a positive note, cash flow from financing activities has been on a downward trajectory, decreasing from $3.7 billion in 2020 to $1.6 billion in 2024, indicating a reduced reliance on external financing sources over time.

News Summary (Quarterly - from Grok)

Sea Limited (SE) is entering March 2026 in a strong position, balancing aggressive growth with consistent profitability. The company is set to report its FY2025 results on March 3, with analysts expecting revenue near $6.4 billion.

Key highlights from the last three months include:

• Shopee (E-commerce): Maintains a dominant 52% market share. A recent $38.46 million investment in Singaporean SMEs and a strategic AI partnership with Google have boosted purchase conversions and logistics efficiency.

• Garena (Gaming): Free Fire remains a powerhouse. The 2026 Esports Roadmap was recently unveiled, expanding global tournament structures to sustain high user engagement.

• SeaMoney (Fintech): This remains the fastest-growing segment, with a $7.9 billion loan book, though investors are closely monitoring credit risks.

With a $1 billion share buyback in progress, management is signalling high confidence as the stock undergoes a market re-rating.

Earnings Call

The EPS and Revenue forecast for the coming earnings are $0.802 and $6.49 Billion, respectively. Given the above information, Sea Limited can be an interesting option that demands more research.

@TigerStars

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