Buffett Brain · Research note
Score updated 21 Oct 2026
SE· Consumer Discretionary
Sea
Sea Limited's growth in e-commerce and digital services is promising, but profitability and moat concerns remain.
Buffett fit
Partial fit
Owner
21
Durability
62
Management
55
Price
36
Score updated 21 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned Sea Limited entirely, we'd focus on strengthening its competitive position in e-commerce and digital finance.
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Sea Limited's long-term durability hinges on its ability to maintain growth in e-commerce and digital services.
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Sea Limited's shows a share count CAGR of 2.8%, indicating some dilution.
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Sea Limited's valuation is stretched with a of 33.5 and EV/ of 27.6.
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- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Revenue CAGR of 23.21% indicates strong growth potential.
- 2Net debt/EBITDA of -1.15 reflects excellent liquidity.
- 3Interest coverage ratio of 79.1 suggests robust financial stability.
- 4 of $4.51B shows strong cash generation.
Concerns
5- 1 of 33.5 suggests high growth expectations are priced in.
- 2 of 8.38% is below the sector top-quintile cutoff of 13.7%.
- 3 of 8.2% is below the sector top-quintile of 14.9%.
- 4Negative market cap versus retained earnings indicates poor .
Price history
$80.43-77.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Sea Limited operates in digital entertainment, e-commerce, and digital financial services across Southeast Asia and Latin America. The Shopee platform drives e-commerce revenue, while Garena contributes through gaming. SeaMoney offers financial services like mobile wallets and payment processing. Despite a revenue CAGR of 23.21%, the company struggles with profitability, reflected in a 6.4% net margin.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Consumer Discretionary
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