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Grab (GRAB)
:GRAB
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Grab (GRAB) AI Stock Analysis

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GRAB

Grab

(NASDAQ:GRAB)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
$6.50
▲(10.17% Upside)
Grab's overall stock score is driven by strong financial performance and positive earnings call sentiment, indicating a promising growth trajectory. The technical analysis supports a bullish outlook, although the high P/E ratio suggests caution regarding valuation. The absence of corporate events and dividend yield slightly tempers the overall score.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for Grab's services and effective expansion strategies, supporting long-term business sustainability.
Financial Services Expansion
Expansion in financial services diversifies revenue streams and strengthens Grab's market position in the digital economy, enhancing future growth potential.
Leadership Changes
New leadership with strong backgrounds can drive strategic initiatives and improve competitive positioning in Southeast Asia, benefiting long-term growth.
Negative Factors
Profitability Challenges
Ongoing profitability challenges may hinder long-term financial stability and limit the ability to invest in growth opportunities, affecting future performance.
Increased Regional Corporate Costs
Rising corporate costs can pressure margins and reduce financial flexibility, potentially impacting the company's ability to sustain growth and profitability.
Deliveries Margin Pressure
Margin pressure in the Deliveries segment could affect overall profitability, challenging the company's ability to maintain competitive pricing and service quality.

Grab (GRAB) vs. SPDR S&P 500 ETF (SPY)

Grab Business Overview & Revenue Model

Company DescriptionGrab 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 MoneyGrab 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 Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in several areas, including MTUs, GMV, and financial services, alongside strategic investments in Mobility and Deliveries. However, there were challenges with slower Mobility GMV growth and increased costs. The sentiment leans positive due to significant achievements and strategic growth plans.
Q2-2025 Updates
Positive Updates
Record High Group MTUs and On-demand GMV Growth
Grab reported another strong quarter with group MTUs reaching an all-time high. On-demand GMV accelerated to a 21% year-on-year growth in U.S. dollars, or an 18% growth on a constant currency basis.
14th Consecutive Quarter of Adjusted EBITDA Growth
The company achieved its 14th consecutive quarter of adjusted EBITDA growth, with trailing 12 months adjusted free cash flow expanding to $229 million.
Significant Growth in Financial Services
Grab's financial services business saw total loan disbursals reaching close to $3 billion on an annualized run rate basis in Q2, with credit risks remaining within acceptable levels.
Mobility Transactions Growth
Mobility transactions grew 23% year-on-year, driven by reinvestment into broader accessibility and platform usage, with EBITDA profitability growing year-on-year.
Strong Deliveries GMV Growth
Deliveries GMV accelerated to 19% year-on-year growth on a constant currency basis, driven by product-led initiatives and viral products like Dine Out and Group Orders.
Advertising Revenue Upsurge
Advertising revenue reached a $236 million run rate with a 45% growth, indicating strong future potential for this revenue stream.
Negative Updates
Mobility GMV Growth Slower Than Expected
Mobility GMV growth was slower than expected in Q2 compared to Q1, with trip fares down about 4%, although this was a strategic decision rather than market-driven.
Challenges in Deliveries Margin
Despite growth, the Deliveries segment experienced margin pressure due to new product launches and focus on driving user engagement, with consumer incentives remaining high at 7% of GMV.
Increased Regional Corporate Costs
Regional corporate costs increased by 9.5% quarter-on-quarter, driven by variable costs such as cloud and software expenses, though still slower than top-line growth.
Company Guidance
During Grab's second quarter 2025 earnings call, the company reported strong performance metrics, highlighting a 21% year-on-year increase in on-demand GMV in U.S. dollars, or 18% on a constant currency basis. The group achieved record MTUs and realized its 14th consecutive quarter of adjusted EBITDA growth, while trailing 12 months adjusted free cash flow expanded to $229 million. Grab's financial services arm exhibited robust growth, with total loan disbursals reaching nearly $3 billion on an annualized run rate. The company emphasized its commitment to maintaining cost discipline and expected to accelerate on-demand GMV growth rates compared to 2024. Additionally, the Mobility segment saw a 23% increase in transactions, while the Deliveries segment achieved a 19% constant currency growth in GMV, driven by product-led initiatives. Grab also anticipated further improvements in its advertising revenue, which had reached 1.7% GMV penetration. Looking ahead, Grab aimed to sustain its growth momentum and drive profitable growth and free cash flow generation.

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
65
Positive
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
70
Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.07B2.80B2.36B1.43B675.00M469.00M
Gross Profit1.32B1.17B860.00M77.00M-395.00M-494.00M
EBITDA267.00M-7.00M-215.00M-1.41B-1.50B-923.00M
Net Income112.00M-105.00M-434.00M-1.74B-3.56B-2.75B
Balance Sheet
Total Assets11.14B9.29B8.79B9.17B11.18B5.44B
Cash, Cash Equivalents and Short-Term Investments7.16B5.63B5.04B5.09B8.08B3.30B
Total Debt1.91B364.00M793.00M1.36B2.17B251.00M
Total Liabilities4.78B2.94B2.32B2.51B3.16B11.74B
Stockholders Equity6.36B6.40B6.45B6.60B7.73B-6.40B
Cash Flow
Free Cash Flow671.00M775.00M-6.00M-893.00M-1.02B-683.00M
Operating Cash Flow766.00M852.00M86.00M-819.00M-938.00M-643.00M
Investing Cash Flow-397.00M-231.00M1.87B-1.06B-2.76B-318.00M
Financing Cash Flow992.00M-771.00M-770.00M-1.12B6.57B1.58B

Grab Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.90
Price Trends
50DMA
5.39
Positive
100DMA
5.16
Positive
200DMA
4.90
Positive
Market Momentum
MACD
0.24
Positive
RSI
53.85
Neutral
STOCH
16.52
Positive
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 5.9 is below the 20-day moving average (MA) of 5.91, above the 50-day MA of 5.39, and above the 200-day MA of 4.90, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 16.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRAB.

Grab Risk Analysis

Grab disclosed 69 risk factors in its most recent earnings report. Grab reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Our growing use of artificial intelligence and machine learning may present additional risks, including risks associated with algorithm development or use, the data sets used, and/or a complex, developing regulatory environment. Q4, 2024

Grab Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$13.43B23.468.15%0.74%25.36%61.25%
71
Outperform
$24.90B218.911.77%18.84%
69
Neutral
$8.24B65.833.69%20.14%335.82%
68
Neutral
$8.87B99.6812.58%19.94%
62
Neutral
$733.92M-13.14-37.20%14.79%27.52%
61
Neutral
$4.42B-13.40-38.05%20.42%-9.39%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GRAB
Grab
5.90
2.13
56.50%
LYFT
Lyft
21.82
9.28
74.00%
SPT
Sprout Social
12.47
-16.10
-56.35%
KC
Kingsoft Cloud Holdings
15.09
11.17
284.95%
YMM
Full Truck Alliance
12.93
3.21
33.02%
SRAD
Sportradar Group AG
26.51
14.58
122.21%

Grab Corporate Events

Grab Holdings Announces Key Leadership Changes Effective October 2025
Sep 2, 2025

On September 2, 2025, Grab Holdings Limited announced significant updates to its senior leadership team, effective October 1, 2025. John Pierantoni, with a robust background in finance leadership at major US-listed companies and entertainment giants, will assume the role of Chief Accounting Officer. Meanwhile, Liam Barker, who has been instrumental in leading Grab’s fintech and digital banking legal operations, will take on the position of Group General Counsel. These leadership changes are expected to strengthen Grab’s strategic positioning in the competitive Southeast Asian market.

Grab Holdings Releases Interim Report for First Half of 2025
Aug 18, 2025

On August 15, 2025, Grab Holdings Limited released its interim report for the six-month period ending June 30, 2025. The report highlights the company’s financial performance and operational metrics, showcasing its continued focus on digital banking and financial services expansion in Southeast Asia. The interim report is incorporated into Grab’s registration statements, reflecting its strategic positioning in the digital economy and its potential implications for stakeholders.

Grab Reports Strong Q2 2025 Results with Revenue Growth
Jul 31, 2025

Grab Holdings Limited reported a strong financial performance for the second quarter of 2025, with revenue increasing by 23% year-over-year to $819 million, driven by growth in its On-Demand and Financial Services segments. The company achieved a profit of $20 million, marking an $89 million improvement from the previous year, and recorded an adjusted EBITDA of $109 million, a 69% increase year-over-year. The growth was supported by a 21% increase in On-Demand GMV and a 22% rise in Deliveries GMV, alongside significant contributions from its advertising business. Despite a decrease in net cash from operating activities, the company maintained strong cash liquidity, ending the quarter with $7.6 billion.

Grab Reports Strong Q2 2025 Financial Results
Jul 31, 2025

On July 31, 2025, Grab Holdings Limited announced its financial results for the second quarter of 2025, reporting a 23% year-over-year revenue growth to $819 million. The company achieved a profit of $20 million, marking an $89 million improvement from the previous year. Grab’s On-Demand GMV grew by 21% to $5.4 billion, and Adjusted EBITDA reached a record high of $109 million. The company also issued $1.5 billion in zero coupon convertible senior notes, bolstering its financial position and strategic flexibility. This financial performance underscores Grab’s continued growth momentum and its commitment to disciplined capital allocation, aiming for further profitability in the second half of the year.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 13, 2025