SESea Limited
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (3.5×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
A balanced mix of margins, efficiency, and leverage. ROE 13% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SE?
Sea Limited earns 52% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 43 points above what the capital costs: growth creates value
- Operating margin
- 10%
Operating margin · Internet Retail median 6.0% · fiscal year to FY2025
- Cash conversion
- 3.54×
Cash conversion · 8.42× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +5.5%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −30% |
| FY2021 | −16% |
| FY2022 | −12% |
| FY2023 | 2.0% |
| FY2024 | 4.5% |
| FY2025 | 10% |
Details›
- Gross marginfiscal year to FY2025
- 52%
- Operating marginfiscal year to FY2025
- 10%
- Net marginfiscal year to FY2025
- 8.0%
- Free cash flow margin
- 23%
- R&D as % of revenue
- 5.9%
- Revenue, trailing twelve months
- $19.6B
- Free cash flow, trailing twelve months
- $4.51B
- Net income, trailing twelve months
- $1.58B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 52%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Retail
Ranks #9 of 14 by RyuScore