SEA
ConsumerValuation Breakdown
A classic Discounted Cash Flow model built on Free Cash Flow (FCF), the actual cash a business generates after all operating expenses and capital expenditures. Future FCF is projected for 10 years with gradually decaying growth, then discounted back to today's value using WACC. This is the gold standard of intrinsic valuation: it values the company based on what it can actually deliver to shareholders, independent of market sentiment.
Valuation Track Record
Retroactive intrinsic value vs actual close price — SEA
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of -2.1712 indicates a low likelihood of earnings manipulation, as it is below the threshold of -1.78. However, the earnings quality score of 51.6 suggests potential concerns with cash conversion and revenue recognition, which warrant further scrutiny.
- Earnings Quality Score of 51.6 indicates moderate risk, particularly due to a very low cash conversion score of 0.3/100, suggesting potential issues in translating earnings into cash.
- The SGI of 1.2595 indicates aggressive growth, which may not be sustainable and could lead to future earnings volatility.
- The DSRI of 0.6833 suggests that the company's receivables are well managed relative to sales, indicating a lower risk of revenue manipulation.
- High scores in receivables and margin metrics (100.0/100) reflect strong operational efficiency in these areas.
With 63.4% of shares held by a state-owned enterprise, there may be potential conflicts of interest and less incentive for transparency. However, institutional ownership at 32.5% can provide some level of oversight.
Investors should closely monitor cash flow metrics and revenue recognition practices, considering a cautious approach given the elevated risk signals. Engaging with management on earnings quality could provide further insights.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for SEA — hover nodes for intel, click to navigate