To The Moon

Earnings Calendar (10Nov25)

EARNINGS

We are monitoring the upcoming earnings reports for a portfolio of key companies, including Monday, Occidental, Cisco, Disney and Sea Limited.

Let us look at Sea Limited in detail.

Market Performance and Outlook

• Year-over-Year Stock Performance: The stock price has experienced a significant increase, rising 60.3% from a year ago.

• Analyst Consensus and Price Target:

• The consensus analyst sentiment is a Strong Buy rating.

• The established price target of $196.56 implies a substantial 31.16% potential upside from the current share price.

• Technical Analysis: Current technical indicators are recommending a Strong Sell rating, which presents a divergence from fundamental analyst sentiment.

Revenue and Profitability Trends

• Revenue Growth: Revenue has demonstrated aggressive expansion, growing from $292 million in 2015 to $16.82 billion in 2024. The 10-year Compound Annual Growth Rate (CAGR) for revenue is 59.2%.

• Gross Profit Growth: Gross profit shows a parallel growth trajectory, increasing from $180 million in 2015 to $7.2 billion in 2024.

• Operating Profit Transformation: The company has successfully transitioned its operating performance from a $$83 million loss in 2015 to a positive $662 million profit in 2024.

• Net Profit: The company has reported a net profit for both the 2023 and 2024 fiscal years after years of losses.

Valuation and Efficiency Concerns

• High Valuation: The current Price-to-Earnings (P/E) ratio stands at a steep 75.8, suggesting a premium valuation.

Asset Growth and Debt:

• Total assets have grown at a 10-year CAGR of 55.1%.

• The Debt-to-Assets ratio of 0.2 is not considered overly concerning.

Efficiency Metrics (10-Year Median): There are specific concerns regarding historical efficiency metrics:

• The 10-year median Free Cash Flow (FCF) margin is -11.3%.

• The 10-year median Return on Assets (ROA) is -24.9%.

Sea Limited (SE) Earnings and Investment Assessment

The upcoming earnings forecast for Sea Limited is optimistic, projecting Revenue of $5.69 billion and Earnings Per Share (EPS) of $1.02. This suggests expectations for increased revenue and profitability in the forthcoming report, indicating a positive trajectory for the company’s financial performance.

Investment Considerations and Strategy

Valuation and Profitability Concerns

It is prudent to note the existing concerns regarding the company’s valuation. The high Price-to-Earnings (P/E) ratio signifies that the market is assigning a substantial premium to the company’s future growth potential. This valuation premium implies a higher degree of risk, as the stock is priced for aggressive growth. Furthermore, the concern over historical profitability is understandable. While high-growth technology companies often prioritise market share over immediate earnings, the recent transition to positive net income is a crucial and positive development.

I prefer to monitor the business for this season.

@TigerStars

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