GRAB HOLDINGS LTD - CL A (GRAB) Stock Fundamental Analysis
NASDAQ:GRAB - Nasdaq - KYG4124C1096 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to GRAB. GRAB was compared to 40 industry peers in the Ground Transportation industry. The financial health of GRAB is average, but there are quite some concerns on its profitability. GRAB is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year GRAB was profitable.
In the past year GRAB had a positive cash flow from operations.
GRAB had negative earnings in each of the past 5 years.
In multiple years GRAB reported negative operating cash flow during the last 5 years.
1.2 Ratios
GRAB's Return On Assets of 1.00% is on the low side compared to the rest of the industry. GRAB is outperformed by 62.50% of its industry peers.
GRAB has a Return On Equity of 1.74%. This is in the lower half of the industry: GRAB underperforms 62.50% of its industry peers.
GRAB has a worse Return On Invested Capital (0.99%) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1% | ||
| ROE | 1.74% | ||
| ROIC | 0.99% |
ROA(3y)-8.14%
ROA(5y)-20.64%
ROE(3y)-11.29%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of GRAB (3.61%) is comparable to the rest of the industry.
With a Operating Margin value of 2.77%, GRAB is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
GRAB's Gross Margin of 42.87% is in line compared to the rest of the industry. GRAB outperforms 57.50% of its industry peers.
GRAB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.77% | ||
| PM (TTM) | 3.61% | ||
| GM | 42.87% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y-30.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GRAB is destroying value.
Compared to 1 year ago, GRAB has more shares outstanding
GRAB has more shares outstanding than it did 5 years ago.
GRAB has a better debt/assets ratio than last year.
2.2 Solvency
GRAB has an Altman-Z score of 1.08. This is a bad value and indicates that GRAB is not financially healthy and even has some risk of bankruptcy.
GRAB has a Altman-Z score of 1.08. This is in the lower half of the industry: GRAB underperforms 75.00% of its industry peers.
The Debt to FCF ratio of GRAB is 3.14, which is a good value as it means it would take GRAB, 3.14 years of fcf income to pay off all of its debts.
GRAB's Debt to FCF ratio of 3.14 is amongst the best of the industry. GRAB outperforms 85.00% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that GRAB is not too dependend on debt financing.
The Debt to Equity ratio of GRAB (0.04) is better than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.1
WACC9.5%
2.3 Liquidity
GRAB has a Current Ratio of 1.88. This is a normal value and indicates that GRAB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.88, GRAB belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
A Quick Ratio of 1.87 indicates that GRAB should not have too much problems paying its short term obligations.
The Quick ratio of GRAB (1.87) is better than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
GRAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 180.00%, which is quite impressive.
Looking at the last year, GRAB shows a quite strong growth in Revenue. The Revenue has grown by 18.84% in the last year.
Measured over the past years, GRAB shows a very strong growth in Revenue. The Revenue has been growing by 60.62% on average per year.
EPS 1Y (TTM)180%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)18.84%
Revenue growth 3Y60.62%
Revenue growth 5YN/A
Sales Q2Q%23.34%
3.2 Future
The Earnings Per Share is expected to grow by 77.88% on average over the next years. This is a very strong growth
GRAB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.41% yearly.
EPS Next Y305.07%
EPS Next 2Y164.35%
EPS Next 3Y109.74%
EPS Next 5Y77.88%
Revenue Next Year20.47%
Revenue Next 2Y19.3%
Revenue Next 3Y17.89%
Revenue Next 5Y17.41%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 128.00, which means the current valuation is very expensive for GRAB.
Based on the Price/Earnings ratio, GRAB is valued a bit more expensive than 67.50% of the companies in the same industry.
GRAB's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.11.
GRAB is valuated quite expensively with a Price/Forward Earnings ratio of 51.32.
Based on the Price/Forward Earnings ratio, GRAB is valued a bit more expensive than 67.50% of the companies in the same industry.
GRAB is valuated rather expensively when we compare the Price/Forward Earnings ratio to 35.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128 | ||
| Fwd PE | 51.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRAB is valued more expensive than 80.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GRAB is valued a bit cheaper than 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.25 | ||
| EV/EBITDA | 49.41 |
4.3 Compensation for Growth
GRAB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GRAB's earnings are expected to grow with 109.74% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y164.35%
EPS Next 3Y109.74%
5. Dividend
5.1 Amount
GRAB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.12
+0.13 (+2.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners49.85%
Inst Owner Change-1.78%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.86B
Analysts83.23
Price Target6.21 (21.29%)
Short Float %6.31%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)42.6%
Min EPS beat(2)-10.87%
Max EPS beat(2)96.08%
EPS beat(4)3
Avg EPS beat(4)172.49%
Min EPS beat(4)-10.87%
Max EPS beat(4)345.1%
EPS beat(8)5
Avg EPS beat(8)-3.81%
EPS beat(12)8
Avg EPS beat(12)0.55%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)-0.85%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)1.31%
Revenue beat(8)3
Avg Revenue beat(8)-0.3%
Revenue beat(12)7
Avg Revenue beat(12)2.75%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.46%
PT rev (3m)7.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.96%
EPS NY rev (1m)0%
EPS NY rev (3m)14.1%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 128 | ||
| Fwd PE | 51.32 | ||
| P/S | 6.79 | ||
| P/FCF | 34.25 | ||
| P/OCF | 28.69 | ||
| P/B | 3.28 | ||
| P/tB | 3.92 | ||
| EV/EBITDA | 49.41 |
EPS(TTM)0.04
EY0.78%
EPS(NY)0.1
Fwd EY1.95%
FCF(TTM)0.15
FCFY2.92%
OCF(TTM)0.18
OCFY3.49%
SpS0.75
BVpS1.56
TBVpS1.31
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1% | ||
| ROE | 1.74% | ||
| ROCE | 1.25% | ||
| ROIC | 0.99% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 2.77% | ||
| PM (TTM) | 3.61% | ||
| GM | 42.87% | ||
| FCFM | 19.82% |
ROA(3y)-8.14%
ROA(5y)-20.64%
ROE(3y)-11.29%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y-30.36%
F-Score6
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 3.14 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 76.62% | ||
| Cap/Sales | 3.84% | ||
| Interest Coverage | 2.93 | ||
| Cash Conversion | 304.18% | ||
| Profit Quality | 548.65% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 1.08 |
F-Score6
WACC9.5%
ROIC/WACC0.1
Cap/Depr(3y)63.22%
Cap/Depr(5y)44.93%
Cap/Sales(3y)4.37%
Cap/Sales(5y)6.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)180%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y305.07%
EPS Next 2Y164.35%
EPS Next 3Y109.74%
EPS Next 5Y77.88%
Revenue 1Y (TTM)18.84%
Revenue growth 3Y60.62%
Revenue growth 5YN/A
Sales Q2Q%23.34%
Revenue Next Year20.47%
Revenue Next 2Y19.3%
Revenue Next 3Y17.89%
Revenue Next 5Y17.41%
EBIT growth 1Y146.7%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year391.17%
EBIT Next 3Y101.93%
EBIT Next 5Y65.98%
FCF growth 1Y258.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y342.33%
OCF growth 3YN/A
OCF growth 5YN/A