Grab (GRAB) AI Stock Analysis

• Market Cap: $21.84B
• Dividend Yield: N/A
• Average Volume (3M): 37.89M
• Price to Earnings (P/E): 957.1
• Beta (1Y): 1.16
• Revenue Growth: 17.24%
• EPS Growth: N/A
• Country: US
• Employees: 11,267
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 3,954,639,400
• 10 Day Avg. Volume: 40,063,077
• 30 Day Avg. Volume: 37,888,482
• PEG Ratio: 7.42
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.24
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 14.25
• Enterprise Value/Gross Profit: -89.35
• Enterprise Value/Ebitda: -10.61
• 1Y Price Target: $5.80
• Price Target Upside: 9.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 68 Neutral
• Price Target: $6.00 ▲(13.64%Upside)

Grab's overall stock score is 68, driven by strong financial performance and positive sentiment from the latest earnings call. The technical analysis supports a bullish trend, although caution is advised due to near-overbought conditions. However, the high P/E ratio raises concerns about valuation, indicating potential overvaluation.

Positive Factors

Financial Performance

Grab's mobility and delivery segments are already adjusted EBITDA-positive, excluding regional corporate cost, and its fintech business is expected to see narrower adjusted EBITDA losses and achieve breakeven in the future.

Growth Strategy

Grab is expanding its affordable offerings with initiatives like 'GrabFood for One' and 'Shared Saver' to boost customer growth by expanding its current 6% population penetration in Southeast Asia.

Market Leadership

Grab leads the market in Singapore with a 60-65% share in ride-hailing and deliveries and is growing its presence in financial services.

Negative Factors

Consumer Spending

Slower EBITDA growth is expected in the second half of the year, especially for the Deliveries segment due to weaker consumer spending.

Market Performance

Current share price has already accounted for the strong double-digit GMV growth guidance, limiting further immediate gains.

Regulatory Challenges

There have been no incremental updates on the potential Grab-GoTo merger, and it has run into regulatory hurdles.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.80B	2.36B	1.43B	675.00M	469.00M
Gross Profit	1.17B	860.00M	77.00M	-395.00M	-494.00M
EBITDA	-7.00M	-215.00M	-1.41B	-1.50B	-923.00M
Net Income	-105.00M	-434.00M	-1.74B	-3.56B	-2.75B
Balance Sheet
Total Assets	9.29B	8.79B	9.17B	11.18B	5.44B
Cash, Cash Equivalents and Short-Term Investments	5.63B	5.04B	5.09B	8.08B	3.30B
Total Debt	364.00M	793.00M	1.36B	2.17B	251.00M
Total Liabilities	2.94B	2.32B	2.51B	3.16B	11.74B
Stockholders Equity	6.40B	6.45B	6.60B	8.02B	-6.40B
Cash Flow
Free Cash Flow	775.00M	-6.00M	-893.00M	-1.02B	-683.00M
Operating Cash Flow	852.00M	86.00M	-819.00M	-938.00M	-643.00M
Investing Cash Flow	-231.00M	1.87B	-1.06B	-2.76B	-318.00M
Financing Cash Flow	-771.00M	-770.00M	-1.12B	6.57B	1.58B

Grab Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.28
• 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 5.28 is above the 20-day moving average (MA) of 5.12, above the 50-day MA of 4.96, and above the 200-day MA of 4.70, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 58.48 is Neutral, neither overbought nor oversold. The STOCH value of 65.48 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	73 Outperform	$12.04B	23.14	10.30%	0.83%	28.87%	57.72%
SRAD	73 Outperform	$8.71B	132.26	6.40%	―	21.75%	116.24%
LYFT	72 Outperform	$5.96B	104.27	8.56%	―	27.32%	―
GRAB	68 Neutral	$21.84B	957.14	0.38%	―	17.24%	―
SPT	64 Neutral	$1.13B	―	-36.95%	―	17.79%	16.49%
Sector *	63 Neutral	$34.94B	5.14	-11.21%	1.86%	5.61%	-19.33%
KC	59 Neutral	$4.27B	―	-33.09%	―	13.85%	3.47%