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Grab (GRAB)
NASDAQ:GRAB
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Grab
(NASDAQ:GRAB)
Rating:64Neutral
Price Target:
$5.50
▲(7.21% Upside)
Positive Factors
Financial Performance
Grab delivered a solid performance with topline and bottom line beats, driven by product innovation and strong user engagement.
Market Leadership
Grab's super-app strategy is efficiently scaling the company into a more profitable phase, solidifying its market leadership.
User Growth
The increase in user growth and user frequency was supported by a strategic move to lower trip fares, enhancing market penetration and retention.
Negative Factors
Loan Penetration Risks
Rising loan penetration with drivers and merchants, while driving growth in Grab's fintech segment, could pose financial risks.
Macro Uncertainties
Despite ongoing macro uncertainties, GRAB's significant under-penetration poses challenges for its long-term potential.
Market Competition
High value rides are becoming significant, but increased competition in airport and premium services could impact profitability.
Grab (GRAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.91B
Dividend YieldN/A
Average Volume (3M)36.56M
Price to Earnings (P/E)186.5
Beta (1Y)1.18
Revenue Growth18.84%
EPS GrowthN/A
CountryUS
Employees11,267
SectorTechnology
Sector Strength89
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.01
Shares Outstanding3,953,000,000
10 Day Avg. Volume27,085,554
30 Day Avg. Volume36,556,377
Financial Highlights & Ratios
PEG Ratio2.36
Price to Book (P/B)2.95
Price to Sales (P/S)6.74
P/FCF Ratio24.33
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue5.20
Enterprise Value/Gross Profit12.13
Enterprise Value/Ebitda59.82
Forecast
1Y Price Target
$6.01Price Target Upside17.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
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: -3.02%|
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
Grab reported strong performance with record-breaking metrics in multiple segments, consistent EBITDA growth, and significant advancements in financial services and autonomous vehicle initiatives. While competitive pressures and increased costs present challenges, the overall outlook remains positive with strategic investments and growth projections.Q2-2025 Updates
Positive Updates
Record Group MTUs and On-Demand GMV Growth
Grab achieved an all-time high in group MTUs and saw a 21% year-on-year growth in on-demand GMV in USD, with 18% growth on a constant currency basis.
Consistent Adjusted EBITDA Growth
Fourteenth consecutive quarter of adjusted EBITDA growth, with trailing 12 months adjusted free cash flow expanding to $229 million.
Financial Services Expansion
Total loan disbursals across GrabFin and digital banks reached nearly $3 billion on an annualized run rate basis, with plans to exceed $1 billion loan book size by year-end.
Strong Mobility Transactions Growth
Mobility transactions grew 23% year-on-year, with overall Mobility MTUs increasing by 16% and GMV growing 19% year-on-year.
Deliveries GMV Acceleration
Deliveries GMV accelerated to 19% year-on-year on a constant currency basis, driven by product-led initiatives and viral products.
Autonomous Vehicle Initiatives
Partnerships and pilots for autonomous vehicles are underway, including a shuttle bus in Singapore and drone-powered delivery in the Philippines.
Advertising Revenue Growth
Advertising revenue reached a $236 million run rate, with a 45% growth, driven by increased penetration and higher returns for advertisers.
Negative Updates
Challenges in Competition and Pricing
Competitor activity noted in multiple markets, impacting Mobility GMV growth, with trip fares down 4%.
Increased Regional Corporate Costs
Regional corporate costs increased by 9.5% quarter-on-quarter, driven by variable costs like cloud and software expenses.
Company Guidance
During Grab's Second Quarter 2025 Earnings Call, the company provided guidance indicating robust growth across various metrics. The group achieved an all-time high in MTUs, while on-demand GMV accelerated by 21% year-over-year in U.S. dollars, or 18% on a constant currency basis. This growth contributed to the 14th consecutive quarter of adjusted EBITDA growth, with trailing 12 months adjusted free cash flow reaching $229 million. Grab's financial services arm disbursed loans totaling nearly $3 billion on an annualized run rate basis, maintaining credit risks within acceptable parameters. Looking forward, Grab expects to sustain this growth momentum, aiming to accelerate on-demand GMV growth rates relative to 2024, while maintaining cost discipline to drive profitable growth and free cash flow generation.Grab Financial Statement Overview
Summary
Grab exhibits strong revenue growth and improved gross margins, with a promising shift towards profitability. The balance sheet is solid, showcasing strong equity and low debt levels, while cash flow metrics have significantly improved, indicating effective financial management.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.65
Positive
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.70
Positive
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.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.07B | 2.80B | 2.36B | 1.43B | 675.00M | 469.00M |
| Gross Profit | 1.32B | 1.17B | 860.00M | 77.00M | -395.00M | -494.00M |
| EBITDA | 267.00M | -7.00M | -215.00M | -1.41B | -1.50B | -923.00M |
| Net Income | 112.00M | -105.00M | -434.00M | -1.74B | -3.56B | -2.75B |
Balance Sheet | ||||||
| Total Assets | 11.14B | 9.29B | 8.79B | 9.17B | 11.18B | 5.44B |
| Cash, Cash Equivalents and Short-Term Investments | 7.16B | 5.63B | 5.04B | 5.09B | 8.08B | 3.30B |
| Total Debt | 1.91B | 364.00M | 793.00M | 1.36B | 2.17B | 251.00M |
| Total Liabilities | 4.78B | 2.94B | 2.32B | 2.51B | 3.16B | 11.74B |
| Stockholders Equity | 6.36B | 6.40B | 6.45B | 6.60B | 8.02B | -6.40B |
Cash Flow | ||||||
| Free Cash Flow | 671.00M | 775.00M | -6.00M | -893.00M | -1.02B | -683.00M |
| Operating Cash Flow | 766.00M | 852.00M | 86.00M | -819.00M | -938.00M | -643.00M |
| Investing Cash Flow | -397.00M | -231.00M | 1.87B | -1.06B | -2.76B | -318.00M |
| Financing Cash Flow | 992.00M | -771.00M | -770.00M | -1.12B | 6.57B | 1.58B |
Grab Technical Analysis
Positive
5.13
Price Trends
4.97
Positive
4.80
Positive
4.78
Positive
Market Momentum
<0.01
Negative
53.86
Neutral
85.88
Negative
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 5.13 is above the 20-day moving average (MA) of 5.11, above the 50-day MA of 4.97, and above the 200-day MA of 4.78, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.86 is Neutral, neither overbought nor oversold. The STOCH value of 85.88 is Negative, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $9.64B | 76.98 | 11.80% | ― | 20.14% | 335.82% | |
74 Outperform | $11.57B | 22.24 | 10.30% | 0.87% | 28.87% | 57.72% | |
68 Neutral | $6.43B | 72.27 | 14.07% | ― | 19.94% | ― | |
64 Neutral | $20.91B | 186.55 | 1.77% | ― | 18.84% | ― | |
63 Neutral | $819.73M | ― | -32.50% | ― | 14.79% | 27.52% | |
61 Neutral | $36.03B | 6.77 | -7.27% | 2.00% | 8.65% | -7.61% | |
46 Neutral | $3.93B | ― | -33.09% | ― | 13.85% | 3.47% |
* Technology Sector Average
Performance Comparison
GRAB
Grab
5.13
1.80
54.05%
LYFT
Lyft
15.82
4.22
36.38%
SPT
Sprout Social
14.11
-20.03
-58.67%
KC
Kingsoft Cloud Holdings
13.58
11.05
436.76%
YMM
Full Truck Alliance
11.06
3.47
45.72%
SRAD
Sportradar Group AG
31.00
19.49
169.33%
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.