Grab (GRAB) AI Stock Analysis

• Market Cap: $20.25B
• Dividend Yield: N/A
• Average Volume (3M): 36.96M
• Price to Earnings (P/E): 887.5
• Beta (1Y): 1.19
• Revenue Growth: 17.24%
• EPS Growth: N/A
• Country: US
• Employees: 11,267
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 3,954,639,400
• 10 Day Avg. Volume: 37,771,043
• 30 Day Avg. Volume: 36,961,651
• 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: 0.58
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 9.44
• Enterprise Value/Ebitda: 37.25
• 1Y Price Target: $5.88
• Price Target Upside: 18.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 70 Outperform
• Price Target: $5.50 ▲(10.66%Upside)

Grab's overall stock score is driven primarily by its strong financial performance and positive earnings call sentiment, indicating strong growth potential and improved profitability outlook. However, the high P/E ratio raises concerns about overvaluation, and technical indicators reflect mixed market sentiment, which slightly tempers the overall score.

Positive Factors

Market Leadership

Market leadership is expected to strengthen, supported by a healthy balance sheet.

Revenue Growth

Revenue growth is expected to accelerate, driven by Deliveries, Fintech, and FX tailwind.

Technological Innovation

Grab's innovative and diversified product suite is increasing use cases, while its use of AI for cost optimization is improving efficiency.

Negative Factors

Fintech Losses

The pace of narrowing Fintech losses may be slower depending on loan book and provisions.

Stock Recommendation

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

Grab Business Overview & Revenue Model

Company Description

Grab Holdings Inc. is a Southeast Asian technology company that specializes in mobile technology-based services. Established in 2012, Grab operates in various sectors including transportation, food delivery, and digital payments. The company's core services include ride-hailing, on-demand food delivery through GrabFood, and digital payment solutions via GrabPay. Grab has expanded its offerings to include logistics, financial services, and enterprise solutions, making it a comprehensive platform serving both consumers and businesses across the region.

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
EBITDA	185.00M	-7.00M	-215.00M	-1.41B	-1.50B	-923.00M
Net Income	24.00M	-105.00M	-434.00M	-1.74B	-3.56B	-2.75B
Balance Sheet
Total Assets	9.64B	9.29B	8.79B	9.17B	11.18B	5.44B
Cash, Cash Equivalents and Short-Term Investments	5.88B	5.63B	5.04B	5.09B	8.08B	3.30B
Total Debt	385.00M	364.00M	793.00M	1.36B	2.17B	251.00M
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: 4.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 4.97 is above the 20-day moving average (MA) of 4.78, above the 50-day MA of 4.87, and above the 200-day MA of 4.59, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.54 is Neutral, neither overbought nor oversold. The STOCH value of 60.24 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	$12.89B	24.77	10.30%	0.79%	28.87%	57.72%
YMM	79 Outperform	$12.89B	24.77	10.30%	0.79%	28.87%	57.72%
CWAN	71 Outperform	$6.31B	13.37	58.14%	―	23.21%	―
CWAN	71 Outperform	$6.31B	13.37	58.14%	―	23.21%	―
GRAB	70 Outperform	$20.25B	887.50	0.38%	―	17.24%	―
HPE	69 Neutral	$28.00B	22.05	6.39%	2.44%	11.63%	-24.41%
HPE	69 Neutral	$28.00B	22.05	6.39%	2.44%	11.63%	-24.41%
NTNX	66 Neutral	$20.64B	109,985.71	6.85%	―	16.11%	―
NTNX	66 Neutral	$20.64B	109,985.71	6.85%	―	16.11%	―
LYFT	66 Neutral	$6.76B	118.34	8.56%	―	27.32%	―
LYFT	66 Neutral	$6.76B	118.34	8.56%	―	27.32%	―
Sector *	63 Neutral	$33.79B	5.85	-11.85%	1.81%	5.29%	-18.24%