Seek Limited (SEK) AI Stock Analysis

• Market Cap: $8.26B
• Dividend Yield: 1.57%
• Average Volume (3M): 2.68M
• Price to Earnings (P/E): 1276.9
• Beta (1Y): 1.40
• Revenue Growth: -11.52%
• EPS Growth: -109.88%
• Country: AU
• Employees: 1,128
• Sector: Communication Services
• Sector Strength: 80
• Industry: Internet Content & Information
• EPS (TTM): 0.02
• Shares Outstanding: 356,820,200
• 10 Day Avg. Volume: 1,237,082
• 30 Day Avg. Volume: 2,681,386
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.07
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$27.37
• Price Target Upside: 17.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Seek Limited's overall stock score is primarily driven by its financial struggles, including negative net income and high leverage, which weigh heavily on its financial performance rating. The technical indicators show bearish momentum, further dampening the outlook. The high valuation risk, as evidenced by the negative P/E ratio, adds to the concerns. The stock's strengths, such as stable equity and positive free cash flow, are overshadowed by these significant financial and technical challenges.

Positive Factors

Cash Conversion

Cash conversion was strong at 93%, showing effective financial management.

Strategic Goals

FY28 strategic goals were retained despite the sale of LatAm assets and the soft FY25 outlook.

Negative Factors

Earnings Decline

Asia earnings were significantly down by 50% compared to expectations of 39%, indicating a notable underperformance.

Earnings Performance

FY24 results were below guidance, mostly driven by Asia, reflecting weaker performance in that region.

Market Concerns

Cyclical and structural concerns noted in Singapore/Philippines with share shifts towards free portals given the challenging environment.

Seek Limited Business Overview & Revenue Model

Company Description

Seek Limited (SEK) is a leading global employment marketplace headquartered in Australia, operating across multiple regions including Australia, New Zealand, Asia, and Latin America. The company specializes in online employment classified advertising, connecting job seekers with employers across various industries. Beyond job listings, Seek offers a range of services such as career advice, company reviews, and educational resources to support career development.

How the Company Makes Money

Seek Limited generates revenue primarily through its online employment marketplace, where employers pay to advertise job listings on its platform. The company's revenue model includes fees for job advertisements, subscriptions, and value-added services that enhance the visibility and reach of job postings. Additionally, Seek earns income through partnerships and investments in complementary businesses, including education and training services, which provide additional opportunities for upselling and cross-selling. The company leverages technology and data analytics to optimize its offerings, ensuring effective matches between employers and job seekers, thus maintaining a competitive edge in the employment sector.

Seek Limited Financial Statement Overview

Summary

Seek Limited's financial position reflects challenges in maintaining profitability and revenue growth, with negative net income in 2024 highlighting operational struggles. Despite stable equity and positive free cash flow, high leverage and inconsistent cash flow trends present potential financial risks. The company needs to address its revenue and profitability issues to improve its financial health.

Income Statement

The company experienced significant revenue volatility with a notable decline in total revenue from 2023 to 2024. Gross profit margin remains high, but net income turned negative in 2024, indicating potential profitability issues. The absence of EBIT in 2024 further highlights operational challenges. Historical revenue growth was inconsistent, reflecting fluctuating market conditions.

Balance Sheet

Seek Limited maintains a stable equity base, with stockholders' equity increasing over the years despite fluctuating revenues. However, the debt-to-equity ratio remains relatively high, posing potential leverage risks. The company's equity ratio is stable, showing a balanced asset management approach.

Cash Flow

The cash flow statement reveals a decline in operating cash flow from 2023 to 2024, although free cash flow remains positive, indicating some resilience. The free cash flow to net income ratio is distorted due to negative net income in 2024, suggesting cash flow management challenges.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.12B	1.08B	1.23B	1.12B	760.30M	650.60M
	Gross Profit
640.40M	1.08B	666.90M	640.40M	397.00M	334.90M
	EBIT
384.60M	0.00	376.70M	371.70M	215.60M	153.10M
	EBITDA
373.80M	163.10M	478.30M	266.20M	299.50M	451.50M
	Net Income Common Stockholders
168.80M	-100.90M	1.02B	168.80M	123.30M	-113.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
381.30M	199.60M	251.60M	325.20M	491.90M	648.30M
	Total Assets
3.99B	4.75B	5.23B	4.71B	4.60B	4.33B
	Total Debt
1.46B	1.41B	1.50B	1.57B	1.31B	2.00B
	Net Debt
1.09B	1.21B	1.25B	1.24B	820.60M	1.40B
	Total Liabilities
2.33B	2.17B	2.55B	2.82B	2.68B	2.95B
	Stockholders Equity
1.38B	2.58B	2.68B	1.81B	1.83B	1.07B
Cash Flow		Free Cash Flow
263.70M	159.80M	176.30M	263.70M	209.60M	207.20M
	Operating Cash Flow
396.60M	328.80M	365.70M	396.60M	347.50M	300.00M
	Investing Cash Flow
-572.70M	-128.40M	-214.50M	-572.70M	108.10M	-256.60M
	Financing Cash Flow
-2.30M	-247.40M	-271.10M	-2.30M	-522.60M	192.20M

Seek Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.33
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SEK, the sentiment is Positive. The current price of 23.33 is above the 20-day moving average (MA) of 23.18, above the 50-day MA of 23.18, and above the 200-day MA of 23.05, indicating a bullish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 80.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SEK.

Seek Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REA	75 Outperform	$30.74B	49.32	37.91%	0.84%	20.44%	-14.93%
CAR	71 Outperform	€12.74B	49.00	8.51%	2.30%	40.64%	-63.23%
DHG	68 Neutral	AU$2.77B	51.41	4.88%	1.37%	13.16%	62.71%
Sector *	59 Neutral	$30.02B	0.85	-18.80%	4.01%	2.14%	-50.70%
NXT	48 Neutral	AU$8.36B	―	-2.06%	―	11.58%	-51.09%
SEK	45 Neutral	$8.26B	1,276.92	1.71%	1.57%	-11.52%	-109.88%