SE
Sea Limited
Consumer Cyclical · Internet Retail · Singapore · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 57.0/100 reflects a strong growth profile — revenue up 33.2% and net income up 255.2% — and excellent financial health, offset by zero contributions from the dividend and macro theme factors [growth.revenue.yoy, growth.net_income.yoy, dividend.none, theme.none].
- Profitability is real but moderate, with an 8.0% net margin and 5.4% return on assets, which kept the profitability sub-score from reaching the top of its range [profitability.net_margin_pct, profitability.roa_pct].
- The label 'Research Further' reflects a company with genuine strengths in growth and financial health but structural gaps in income distribution and theme alignment that prevent a higher composite [financial_health.interest_coverage, dividend.none, theme.none].
Why Not Higher
- The confirmed absence of any dividend payment and no assignment to any of the 24 tracked macro themes both scored zero, which weighed materially on the composite despite strong growth and financial health metrics [dividend.none, theme.none].
- Profitability metrics, while positive, remain at moderate levels — net margin of 8.0% and return on assets of 5.4% — leaving room for improvement before the company reaches higher-efficiency thresholds [profitability.net_margin_pct, profitability.roa_pct].
Data Confidence
8 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024 to FY2025 by 33.2%, rising from $14,733,573,000 to $19,625,021,000. Net income surged 255.2% over the same period, from $444,321,000 to $1,578,149,000, while diluted EPS increased 240.5% from $0.74 in FY2024 to $2.52 in FY2025.
The model rewarded the combination of rapid top-line expansion and an even more dramatic acceleration in bottom-line profitability, reflecting operating leverage that amplified revenue gains into outsized earnings growth.
In FY2025, Sea Limited posted an operating margin of 10.1%, a net margin of 8.0%, and a return on assets of 5.4%.
The model recognized genuine profitability across all three metrics, but the moderate levels of net margin and return on assets suggest the company has not yet reached the higher-margin efficiency thresholds that would push the score toward the top of the range.
Sea Limited's interest coverage ratio in FY2025 was 59.1, indicating that operating income covered interest expense by a very wide margin. Total assets in FY2025 stood at $29,370,979,000.
An interest coverage ratio of 59.1 in FY2025 signals an exceptionally low risk of debt-service stress, which the model heavily rewarded; the large asset base further supports a high financial health score.
Filing evidence currently available does not support a more specific explanation for this factor.
Sea Limited does not currently pay a dividend and has no mapped dividend history; this is a genuine characteristic of the company, not a data limitation.
Because the model rewards income distribution to shareholders, a confirmed non-payer receives the lowest possible dividend sub-score.
Sea Limited is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment is a neutral classification outcome; it means the security does not map to a tracked macro theme at this time, which under the model's current methodology results in no theme-based score contribution.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Sea Limited delivered exceptional growth in FY2025, with revenue rising 33.2% to $19,625,021,000 and net income surging 255.2% to $1,578,149,000, reflecting strong operating leverage [growth.revenue.yoy, growth.net_income.yoy]. The company is genuinely profitable, posting an operating margin of 10.1% and a net margin of 8.0%, and carries very low debt-service risk with an interest coverage ratio of 59.1 [profitability.operating_margin_pct, financial_health.interest_coverage]. However, the absence of a dividend and no current macro theme assignment both scored zero, which weighed on the composite, resulting in a total model score of 57.0/100 and a Medium risk rating [dividend.none, theme.none].
Plain English
Sea Limited is growing fast and making real money — revenue jumped 33.2% and profits more than tripled in one year — but it doesn't pay dividends and doesn't fit into any of the model's tracked investment themes, which held its overall score to 57 out of 100 [growth.revenue.yoy, growth.net_income.yoy, dividend.none, theme.none].
Bull Case vs. Bear Case
Bull Case
- Revenue grew 33.2% year-over-year to $19,625,021,000, while diluted EPS climbed 240.5% from $0.74 to $2.52, demonstrating powerful operating leverage that turned top-line gains into outsized bottom-line results [growth.revenue.yoy, growth.eps_diluted.yoy].
- An interest coverage ratio of 59.1 in FY2025 signals that operating income covers interest expense by an exceptionally wide margin, indicating very low financial stress risk on a $29,370,979,000 asset base [financial_health.interest_coverage, financial_health.total_assets].
- The company achieved genuine profitability across multiple dimensions in FY2025, including a 10.1% operating margin and a 5.4% return on assets, confirming that growth is translating into real earnings efficiency [profitability.operating_margin_pct, profitability.roa_pct].
Bear Case
- Sea Limited pays no dividend and has no mapped dividend history, meaning shareholders receive no current income distribution, which the model penalizes with the lowest possible sub-score in that category [dividend.none].
- Net margin of 8.0% and return on assets of 5.4% in FY2025, while positive, remain at moderate levels that fall short of the higher-efficiency thresholds that would push profitability scores toward the top of the range [profitability.net_margin_pct, profitability.roa_pct].
- Sea Limited is not assigned to any of the 24 tracked macro themes in the model, meaning it captures no theme-based score contribution under the current methodology [theme.none].
What Could Change the Picture
Bullish Triggers
- If net margin and return on assets continue to expand beyond current levels of 8.0% and 5.4% respectively, the profitability score could move meaningfully higher, strengthening the overall composite [profitability.net_margin_pct, profitability.roa_pct].
- An initiation of dividend payments would directly address the zero-scoring dividend factor, potentially lifting the composite score [dividend.none].
Bearish Triggers
- A deceleration in the revenue growth rate from the current 33.2% pace, or a reversal of the dramatic net income improvement, would significantly weaken the growth factor that currently anchors the composite score [growth.revenue.yoy, growth.net_income.yoy].
- Any deterioration in the interest coverage ratio from its current level of 59.1 could signal rising financial stress on the company's large asset base [financial_health.interest_coverage, financial_health.total_assets].
Risk Profile
Medium RiskSea Limited's interest coverage ratio of 59.1 in FY2025 indicates an exceptionally low risk of debt-service stress, supporting a Medium overall risk rating [financial_health.interest_coverage]. The momentum factor contributed to the composite score, though the specific filing evidence underlying that component is not available for detailed elaboration [financial_health.interest_coverage].
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.