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GRAB

Grab Holdings NasdaqGS:GRAB Stock Report

Last Price

US$2.63

Market Cap

US$10.1b

7D

-4.4%

1Y

-74.5%

Updated

30 Sep, 2022

Data

Company Financials +
GRAB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health4/6
Dividends0/6

GRAB Stock Overview

Grab 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.

Grab Holdings Limited Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Grab Holdings
Historical stock prices
Current Share PriceUS$2.63
52 Week HighUS$17.15
52 Week LowUS$2.26
Beta0
1 Month Change-7.72%
3 Month Change10.50%
1 Year Change-74.49%
3 Year Changen/a
5 Year Changen/a
Change since IPO-77.88%

Recent News & Updates

Sep 27

Grab expects to break even by H2 2024

Grab Holdings (NASDAQ:GRAB) expects to break-even on its adjusted EBITDA by the second half of 2024 as it accelerates towards profitability, company officials said on Tuesday. The Southeast Asia's ride hailing and food delivery firm stated it estimates adjusted EBITDA loss to be about $380M for second half of 2022, a 27% improvement from the first half. Group revenue is expected to grow between 45% to 55% year-on-year in 2023 on a constant currency basis. "We’ve been firing on all cylinders to improve our profitability trajectory and deliver growth in a sustainable manner and the new targets we’ve shared today reflect that....We plan to leverage the power of the superapp ecosystem as a competitive moat to strengthen our leadership in the region, even as we continue to optimize our costs," CEO Anthony Tan told analysts at first investor day. The company also expects to break even in its digibank operations by 2026. As of August 2022, Grab has seen 19% higher batch rates and 11% increase in trips per transit hour. Stock is up 2% in pre-market trading. Since its listing in Dec 2021, GRAB stock has lost over 70% in price vs. benchmark S&P 500 -18%.

Sep 19

Grab: Another Top Southeast Asian Growth Stock

Summary Grab is the largest ride-sharing and grocery delivery company in Southeast Asia. The company hit record revenue in Q2 2022 and continues to increase monthly active users on its platform. I like GRAB stock under $5 as a strong buy and believe it's one of the best foreign stocks to hold right now. Grab (GRAB) is a Singaporean-based ride-sharing and grocery delivery company with operations all over Southeast Asia. I don't normally highlight foreign companies because American companies benefit from a much larger economy and consumers with a relatively high annual income. But every now and then, I find value in foreign companies with a wide moat and strong brand recognition. Grab fits the bill perfectly because the company dominates its marketplace in Southeast Asia. I've visited Thailand and Philippines over the years and you will see green Grab delivery riders everywhere. The company is so dominant that Uber (UBER) sold its operations to Grab and bought a stake in the company as a blatant surrender move. In this article, I'll give you a general breakdown of Grab and share several reasons why I'm bullish on the company long term. Grab Overview Grab was founded in 2016 by Singapore Billionaire Anthony Tan who had a vision of building a super-app for Southeast Asia. Southeast Asia is made up of 8 countries and has a total population of 683 million people. It's one of the fastest growing economies in the world thanks to massive technological advances and foreign investment. Grab operates in 4 key segments: Delivery, Mobility, Financial Services, and Enterprise Services (Advertising for businesses). The American ride sharing & food delivery industry has many competitors such as Uber, Lyft (LYFT), DoorDash (DASH), and several other small companies who compete aggressively for the huge $ tide sharing market. On the other hand, Grab only has 1 competitor in Southeast Asia called Foodpanda, a smaller company based out of Europe. Record Q2 Revenue and GMV The company hit record Q2 revenue of $321 million (Up 79% YoY) along with record Q2 GMV of $5.1 billion (Up 30% YoY). Grab Q2 2022 Financials (grab.com) Monthly Transacting Users (MTAs) reached 32.6 million (Up 12% YoY) with 62% of users using 2 or more services on the app. Net losses were $572 million, which was a 27% improvement from Q2 2021. Grab continues to grow its MTA and establish a massive footprint in Southeast Asia. I don't see any competitors taking market share from the company right now and Grab will be able to raise prices to adjust for inflation to keep both merchants and consumers on a level playing field. Deliveries Delivery revenue grew 199% YoY and makes up nearly 50% of the company's revenue and Grab just announced a new partnership with Coca-Cola (KO) in August 2022 to offer more of its products on the app. Grab Q2 2022 Deliveries (grab.com) Grocery & food delivery is a stable and lucrative business that the company can continue profiting from. The Grab app makes it easy to order from any restaurant or grocery store within a 20 km radius, which gives app users a wide range of selections. Grab can onload more restaurants and increase its revenue as more users flock to its app. Mobility Mobility bounced back nicely in Q2 2022 and Grab saw a nice revenue boost of 37% in its ride sharing segment due to higher tourist activity and international travel. Grab Q2 2022 Mobility (grab.com) Grab does compete with motorcycle taxis that offer citywide transportation throughout Southeast Asia at a lower cost. It will be interesting to see if Grab adds motorcycle rides to its platform in the future. Southeast Asian countries are beginning to welcome back tourists and drop mask mandates, which is extremely bullish for its ridesharing segment. Financial Services Financial services saw a 94% in revenue YoY as more users use the company's digital payment app and applied for loans through Grab. Grab Q2 2022 Financial Services (grab.com) Grab is becoming a solid alternative to PayPal (PYPL) in Southeast Asia and could benefit from an increase in TPV over the next few years. Enterprise Services Grab's Enterprise services saw a 30% revenue boost YoY as more companies spent money on GrabAds to drive higher customer sales volume. Grab Q2 2022 Enterprise Services (grab.com) Grab isn't generating a lot of revenue from merchant ads but could scale this segment as MTA is approaching 50+ million. The company also launched Grab Maps in August 2022 to help alleviate many of its problems using standard Google Maps. Management expects to break even on the food & deliveries segment much earlier than expected. My Bullish Take GRAB stock trades around $3 and is down 61% from its initial SPAC IPO. GRAB data by YCharts The company made history by becoming the most expensive SPAC IPO of all-time with an initial valuation of $40 billion. What's most intriguing is that Altimeter Capital selected Grab as its SPAC partner. I trust their judgement and believe Grab is one of the best stocks under $5 to own right now. Digital technological advances in Southeast Asia will drive higher per capita incomes and more e-commerce activity in the future. Grab CEO Anthony Tan believes the company will be profitable soon and could start generating positive EBITDA as soon as 2023.

Shareholder Returns

GRABUS TransportationUS Market
7D-4.4%-3.1%-2.5%
1Y-74.5%-28.9%-23.2%

Return vs Industry: GRAB underperformed the US Transportation industry which returned -26.5% over the past year.

Return vs Market: GRAB underperformed the US Market which returned -21.5% over the past year.

Price Volatility

Is GRAB's price volatile compared to industry and market?
GRAB volatility
GRAB Average Weekly Movement10.9%
Transportation Industry Average Movement6.8%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: GRAB is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: GRAB's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
n/a9,493Anthony Tanhttps://www.grab.com/sg

Grab 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.

Grab Holdings Limited Fundamentals Summary

How do Grab Holdings's earnings and revenue compare to its market cap?
GRAB fundamental statistics
Market CapUS$10.13b
Earnings (TTM)-US$2.99b
Revenue (TTM)US$828.00m

12.2x

P/S Ratio

-3.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GRAB income statement (TTM)
RevenueUS$828.00m
Cost of RevenueUS$1.21b
Gross Profit-US$382.00m
Other ExpensesUS$2.61b
Earnings-US$2.99b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.78
Gross Margin-46.14%
Net Profit Margin-361.59%
Debt/Equity Ratio27.7%

How did GRAB perform over the long term?

See historical performance and comparison