Grab (GRAB) AI Stock Analysis

• Market Cap: $18.62B
• Dividend Yield: N/A
• Average Volume (3M): 32.99M
• Price to Earnings (P/E): 816.1
• Beta (1Y): 1.18
• Revenue Growth: 17.24%
• EPS Growth: N/A
• Country: US
• Employees: 11,267
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 3,954,639,400
• 10 Day Avg. Volume: 44,501,761
• 30 Day Avg. Volume: 32,987,862
• PEG Ratio: 0.08
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.75
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 9.44
• Enterprise Value/Ebitda: 37.25
• 1Y Price Target: $5.87
• Price Target Upside: 24.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 65 Neutral
• Price Target: $5.00 ▲(6.16%Upside)

Grab's overall stock score is driven primarily by its improving financial performance and positive sentiment from the recent earnings call. However, the high P/E ratio suggests significant overvaluation, and mixed technical indicators point to potential near-term volatility. The company's strategic initiatives and growth prospects provide a favorable long-term outlook, but valuation concerns and operational challenges temper the overall score.

Positive Factors

Financial Guidance

GRAB raised its full-year adjusted EBITDA guidance, indicating strong business performance.

Product Innovation

New product launches and the use of generative AI tools are enhancing user engagement and operational efficiency, positioning GRAB for sustained growth.

Strategic Market Position

Grab Holdings is the Southeast Asian market leader in delivery and mobility services.

Negative Factors

Analyst Recommendation

The recommendation for Grab has been downgraded to HOLD with an unchanged target price, indicating a cautious outlook.

Shareholder Impact

Grab's adjusted EBITDA gets a bigger boost from stock-based compensation, potentially leading to dilution of existing shareholders.

Valuation Concerns

The analyst downgrades Grab to HOLD with an unchanged target price of USD5.16, valuing its fintech at a discount due to ongoing losses.

Grab Business Overview & Revenue Model

Company Description

Grab Holdings Limited provides superapps that allows access to mobility, delivery, financial services, and enterprise offerings through its mobile application in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company is headquartered in Singapore.

How the Company Makes Money

Grab makes money through multiple revenue streams, primarily driven by its diverse platform of services. The company's core revenue comes from ride-hailing services, where Grab charges a commission fee from drivers for every ride completed through its platform. GrabFood generates income by taking a percentage of each food order placed through its app, along with delivery fees. Additionally, GrabPay, the company's digital wallet, contributes to revenue through transaction fees from merchants and users. Grab also earns from its financial services, which include lending, insurance, and investment products. Strategic partnerships and collaborations with businesses and governments in Southeast Asia further bolster its revenue generation, as does its expanding enterprise solutions portfolio, which offers logistics and other business services.

Grab Financial Statement Overview

Summary

Grab shows a promising turnaround with strong revenue growth, improved gross margins, and a positive shift in profitability metrics. The balance sheet is solid, with strong equity and low debt levels. Cash flows have significantly improved, showcasing effective financial management. While challenges remain in achieving sustainable profitability, the overall financial health is on an improving trajectory, positioning the company well for future growth.

Income Statement

The income statement reflects a strong revenue growth trajectory, with a 23.67% increase from 2023 to 2024 and a 4.28% increase from 2024 to TTM (Trailing-Twelve-Months). Gross profit margins have improved significantly, indicating enhanced operational efficiency. However, consistent net losses over the years highlight ongoing profitability challenges, although the TTM period shows a positive net income, which is an encouraging sign. The EBIT and EBITDA margins have improved but remain negative, indicating ongoing operational difficulties.

Balance Sheet

Grab's balance sheet is robust with a high equity ratio of 67.25% in the TTM, suggesting strong financial stability and low leverage risk. The debt-to-equity ratio is modest at 0.06, indicating conservative debt management. Return on equity has turned positive in the TTM, reflecting improved profitability. The company maintains a strong cash position, reinforcing its ability to meet short-term obligations and invest in growth opportunities.

Cash Flow

Cash flow metrics indicate a solid improvement, with a substantial increase in free cash flow from 2023 to TTM. The operating cash flow to net income ratio is strong, reflecting effective cash management and operational efficiency. The positive trend in free cash flow growth indicates an enhanced ability to generate cash surplus, which can be used for strategic investments or debt reduction.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.92B	2.80B	2.36B	1.43B	675.00M	469.00M
	Gross Profit
1.24B	1.17B	860.00M	77.00M	-395.00M	-494.00M
	EBIT
-65.00M	-168.00M	-404.00M	-1.31B	-1.55B	-1.30B
	EBITDA
185.00M	-7.00M	-215.00M	-1.41B	-1.50B	-923.00M
	Net Income Common Stockholders
24.00M	-105.00M	-434.00M	-1.74B	-3.56B	-2.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.88B	5.63B	5.04B	5.09B	8.08B	3.30B
	Total Assets
9.64B	9.29B	8.79B	9.17B	11.18B	5.44B
	Total Debt
385.00M	364.00M	793.00M	1.36B	2.17B	251.00M
	Net Debt
-2.44B	-2.60B	-2.35B	-587.00M	-2.66B	-1.75B
	Total Liabilities
3.17B	2.94B	2.32B	2.51B	3.16B	11.74B
	Stockholders Equity
6.48B	6.40B	6.45B	6.60B	8.02B	-6.40B
Cash Flow		Free Cash Flow
938.00M	775.00M	-6.00M	-893.00M	-1.02B	-683.00M
	Operating Cash Flow
1.04B	852.00M	86.00M	-819.00M	-938.00M	-643.00M
	Investing Cash Flow
-149.00M	-231.00M	1.87B	-1.06B	-2.76B	-318.00M
	Financing Cash Flow
-207.00M	-771.00M	-770.00M	-1.12B	6.57B	1.58B

Grab Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRAB, the sentiment is Positive. The current price of 4.71 is below the 20-day moving average (MA) of 4.88, above the 50-day MA of 4.69, and above the 200-day MA of 4.50, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 21.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRAB.

Grab Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YMM	79 Outperform	$12.74B	24.49	10.30%	0.79%	28.87%	57.72%
CWAN	78 Outperform	$6.28B	13.23	58.14%	―	23.21%	―
HPE	71 Outperform	$23.93B	18.84	6.39%	2.85%	11.63%	-24.41%
LYFT	71 Outperform	$6.22B	108.84	8.56%	―	27.32%	―
NTNX	66 Neutral	$19.41B	103,428.57	6.85%	―	16.11%	―
GRAB	65 Neutral	$18.62B	816.07	0.38%	―	17.24%	―
Sector *	62 Neutral	$11.96B	10.09	-7.50%	3.10%	7.33%	-8.11%