Sea Stock Beneish M Score
| SE Stock | USD 64.91 1.08 1.64% |
Sea | Beneish M Score |
At this time, it appears that Sea is an unlikely manipulator. The earnings manipulation may begin if Sea's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Sea executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Sea's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.86
Beneish M Score - Unlikely Manipulator
Sea Beneish M-Score Indicator Trends
The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Sea's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Net Receivables | 4.6 B | 4.4 B |
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| Total Revenue | 13.7 B | 13.1 B |
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| Total Assets | 19.8 B | 18.9 B |
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| Total Current Assets | 6.3 B | 11.6 B |
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| Non Current Assets Total | 7.7 B | 7.3 B |
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| Property Plant Equipment | 2.8 B | 2.7 B |
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| Selling General Administrative | 587.8 M | 1.1 B |
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| Total Current Liabilities | 8.6 B | 8.2 B |
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| Non Current Liabilities Total | 2.1 B | 4 B |
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| Short Term Debt | 622.6 M | 592.9 M |
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| Long Term Investments | 4.5 B | 4.3 B |
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| Gross Profit Margin | 0.24 | 0.4378 |
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Sea Beneish M-Score Driver Matrix
One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Sea's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Sea in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Sea's degree of accounting gimmicks and manipulations.
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About Sea Beneish M Score
M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.
Current Deferred Revenue |
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Sea Earnings Manipulation Drivers
Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Sea. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Net Receivables | 191.8M | 668.4M | 1.9B | 2.3B | 4.4B | 4.6B | |
| Total Revenue | 2.2B | 4.4B | 10.0B | 12.4B | 13.1B | 13.7B | |
| Total Assets | 5.2B | 10.5B | 18.8B | 17.0B | 18.9B | 19.8B | |
| Total Current Assets | 4.4B | 8.9B | 15.1B | 12.7B | 11.6B | 6.3B | |
| Net Debt | (1.5B) | (4.1B) | (5.0B) | (1.5B) | 230.1M | 241.6M | |
| Short Term Debt | 87.1M | 74.5M | 286.5M | 389.6M | 592.9M | 622.6M | |
| Long Term Debt | 1.4B | 1.8B | 3.5B | 3.3B | 3.1B | 2.0B | |
| Operating Income | (891.2M) | (1.3B) | (1.6B) | (1.1B) | 121.8M | 127.9M | |
| Investments | (363.2M) | (886.9M) | (3.8B) | (2.4B) | (5.8B) | (5.5B) | |
| Gross Profit Margin | 0.28 | 0.31 | 0.39 | 0.42 | 0.44 | 0.24 |
About Sea Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Sea's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Sea using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Sea based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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When determining whether Sea is a strong investment it is important to analyze Sea's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Sea's future performance. For an informed investment choice regarding Sea Stock, refer to the following important reports:Check out Sea Piotroski F Score and Sea Altman Z Score analysis. For information on how to trade Sea Stock refer to our How to Trade Sea Stock guide.Note that the Sea information on this page should be used as a complementary analysis to other Sea's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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When running Sea's price analysis, check to measure Sea's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sea is operating at the current time. Most of Sea's value examination focuses on studying past and present price action to predict the probability of Sea's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sea's price. Additionally, you may evaluate how the addition of Sea to your portfolios can decrease your overall portfolio volatility.
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Is Sea's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sea. If investors know Sea will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sea listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 0.25 | Revenue Per Share 23.056 | Quarterly Revenue Growth 0.048 | Return On Assets 0.0119 | Return On Equity 0.026 |
The market value of Sea is measured differently than its book value, which is the value of Sea that is recorded on the company's balance sheet. Investors also form their own opinion of Sea's value that differs from its market value or its book value, called intrinsic value, which is Sea's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sea's market value can be influenced by many factors that don't directly affect Sea's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sea's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sea is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sea's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.