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Grab (GRAB)
NASDAQ:GRAB
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Grab
(NASDAQ:GRAB)
Rating:65Neutral
Price Target:
$5.50
▲(3.77% Upside)
Positive Factors
Revenue Growth
Strong revenue growth in on-demand GMV indicates robust market demand and effective service offerings, supporting long-term business expansion.
Financial Services Expansion
Expansion in financial services with significant loan disbursals enhances revenue streams and diversifies business operations, boosting long-term growth.
Cash Flow Improvement
Improved cash flow indicates effective financial management, providing resources for strategic investments and enhancing financial stability.
Negative Factors
Profitability Challenges
Ongoing profitability challenges could hinder sustainable growth, requiring strategic focus on cost management and revenue optimization.
Increased Corporate Costs
Rising corporate costs may pressure margins and reduce operational efficiency, necessitating cost control measures for long-term sustainability.
Deliveries Margin Pressure
Margin pressure in the Deliveries segment could impact profitability, requiring strategic adjustments to maintain competitive advantage and growth.
Grab (GRAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.60B
Dividend YieldN/A
Average Volume (3M)30.80M
Price to Earnings (P/E)192.7
Beta (1Y)1.14
Revenue Growth18.84%
EPS GrowthN/A
CountryUS
Employees11,267
SectorTechnology
Sector Strength86
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.01
Shares Outstanding3,953,000,000
10 Day Avg. Volume30,518,941
30 Day Avg. Volume30,799,260
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue5.20
Enterprise Value/Gross Profit12.13
Enterprise Value/Ebitda59.82
Forecast
1Y Price Target
$6.03Price Target Upside13.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Grab Business Overview & Revenue Model
Company DescriptionGrab 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 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
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 | 7.73B | -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
5.30
Price Trends
5.08
Positive
4.95
Positive
4.83
Positive
Market Momentum
0.07
Negative
70.90
Negative
94.43
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 5.3 is above the 20-day moving average (MA) of 5.09, above the 50-day MA of 5.08, and above the 200-day MA of 4.83, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 70.90 is Negative, neither overbought nor oversold. The STOCH value of 94.43 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 | 77.43 | 11.80% | ― | 20.14% | 335.82% | |
75 Outperform | $13.91B | 24.22 | 11.14% | 0.70% | 25.36% | 61.25% | |
68 Neutral | $7.71B | 86.61 | 14.07% | ― | 19.94% | ― | |
65 Neutral | $21.60B | 192.73 | 1.77% | ― | 18.84% | ― | |
62 Neutral | $816.32M | ― | -32.50% | ― | 14.79% | 27.52% | |
61 Neutral | $36.70B | 12.21 | -10.39% | 1.84% | 8.50% | -7.32% | |
61 Neutral | $4.04B | ― | -31.02% | ― | 20.42% | -9.39% |
* Technology Sector Average
Performance Comparison
GRAB
Grab
5.53
2.08
60.29%
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18.32
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SPT
Sprout Social
14.42
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KC
Kingsoft Cloud Holdings
16.77
14.57
662.27%
YMM
Full Truck Alliance
13.79
6.66
93.41%
SRAD
Sportradar Group AG
30.00
18.39
158.40%
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.