Sea Limited has its headquarters in Singapore. It is a tech conglomerate established in 2009 by Forrest Li. The company has more than 67K employees as of 2022. It provides services worldwide.
The company has a very huge PE ratio of 83.63, which does not support the current stock price. The current EPS of the share is 0.43 following a market cap of 20.453B. It follows up with 519.231M shares floating in the market available for trading.
Sea Limited has a neutral ROE ratio of 4.59% with a ROA of 1.51%. The company’s business is running well except for the ban of Free Fire in India, it follows a current ratio of 1.75. That makes the company capable enough to repay its debt.
Following a year-on-year change in Q2 2023, the net cash at the company stands at $4.95B, resulting in a decline of -36.6%. It follows a further decline of 11.3% in the ROIC of the company resulting in -47.4%.
Sea Limited Stock Performance Analysis
The revenue of the company is consistently advancing year-on-year. With the increase in revenue, the profit margin is also increasing despite being negative. The debt of the company has slightly advanced resulting in $4.49B. The company’s financials are in negative but improving every year.
Technical Overview of SE Stock
On comparing with the multiple number of technical indicators, the majority of the oscillators are indicating a sell signal and seven MAs are neutral for the stock on the daily timeframe. On summarising the behavior of the indicators, we can see that the stock is bearish and the technical indicators are indicating a sell.
SE Share Technical Analysis
The SE share price is trading in a steep downtrend following a falling wedge pattern and the price is still trading inside the same declining to lower levels. On charts, the stock has created huge volume gaps and an imbalance in price.
Consistent decline in price has led to a death cross of 50-day and 200-day EMAs. It indicates the strong downtrend and presence of sellers in the market.
The RSI of the Sea Limited share is consistently trading below the oversold zone. That is a bearish signal for the stock. It also represents that the market is totally dominated by sellers.
Conclusion
The sanction of the Free Fire in India has been a huge dilemma for SE share. The company’s financials are improving, but are not sustainable yet as the company is still trying to recover its debt. The technicals are negative for the stock following a negative market structure. The EMA and the RSI are also acting bearish.
Therefore, the share price can decline to further lower levels unless the price breaks above the wedge pattern.
Technical Levels
- Support levels for the SE share are – $26.60 and $34.50
- Resistance levels for the SE share are – $66.50 and $88.00
Disclaimer
The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/25/se-valuation-at-its-all-time-low-best-time-to-buy-for-investors/