The digital economy of Southeast Asia is flourishing, and GRAB Holdings (GRAB) has quietly put itself as a higher investment for those looking for non -American exposure in their governorates. It covers the Singapore SUPER Super application, which is covered with mobility, deliveries and financial services, gradually crawling towards profitability with a cash reserve boasting that provides a large margin of safety and opportunities for integration and purchases.
Get the financial environment for sports as part of the strategy of the broadest smartest market, which has not yet noticed a broader audience. Moreover, the arrow is still deeply due to the “Asia Divivation”, which may be translated into great gains despite the already 53 % shares over the past year. I tend to ascend to the jewel of technology in Southeast Asia despite the overall opposite and political winds.
The seizure of the price date over the past 12 months
No one can argue against the fact that the seizure has come a long way. From a climbing player, it has grown steadily to become an indispensable environmental system for more than 680 million people in eight countries in Southeast Asia. In its latest report, the company celebrated a 17 % increased revenue to $ 764 million and a $ 11 million, which represents a pivotal transformation from the days of burning money.
The free cash flow for the entire year reached 136 million dollars, which is an enormous improvement from $ 234 million negatively last year, as the company has now begun to accommodate the public budget and create the value of the shareholders in meaning.
Grab (GRAB) estimated and reported revenue estimates
Looking at the deeper in the financial statements, the GRAB’s public budget is great. With almost no debts, 6 billion dollars in cash (about a third of the maximum current market), and a clear path to the positive EPS in 2025, and free cash flow in green, the loud GRAB site is set. In fact, we must see the height of free cash flow with its margins expanding with size. Revenue is expected to be approximately $ 3.4 billion for 2025, which means approximately 20 % growth and the creation of prospects for the expansion of free cash flow margin.
The wonderful aspect of the GRA rust investment issue is that the stocks are trading with the “Asian opponent”. Historically, Western investors of Asian technical stocks (and GRA on the Nasdaq Stock Exchange) tend to be incredibly careful about organizational risks or competition and setting less complications than their American peers.
A comparison between the seizure arrow (seizure) and Uber (Uber)
For context, the P/S of GRAB is 5.7, which is higher than Uber’s 3.1, but the deal due to its important growth path. GNES Q4 GMV has reached $ 5 billion (an increase of 20 %), and its financial services arm, which provides payments and even small loans now, is taking advantage of a huge, non -designed market.
However, the share price is as if it was still a speculative project. On the contrary, unanimity estimates indicate a high cash flow that rises to $ 513 million this year. Cash reserves of $ 6 billion in this context may be, as the company can finance shares, innovation and/or the transformative acquisition.
With the knowledge of the $ 6 billion in war, joint joint knowledge is concerned with wondering how to plan to publish it. Earlier this month, reports of talks that revived the combination of the Goto competition, as the joint company formed a power of more than $ 7 billion. Of course, the challenges of anti -monopoly can hold the deal, but if it succeeds, I think it is safe to say that GRA regional dominance will be greatly enhanced.
But even without the deal, GRAB is still making real progress. that it The partnership with Amazon Web Services enhances the spine of the technology, while the BYD deal for 50,000 electric cars should reduce costs and allow an additional scale. Meanwhile, the financial services sector is quietly outperforming the movement, so I see it as one of the assets that investors can obtain Along with basic works.
Beyond Asia’s opponent, the feelings were lukewarm. The last quarter did not pay a re -purchase of observation despite this criticism, while the acquisition targets such as Goto and Foodpanda continue to press. However, GRAB’s economic footprint is indescribable. The company adds 1 % to the GDP in Thailand and 0.5 % to Malaysia, according to recent studies.
Revenue (seizure) revenues, profits and profit margin
Meanwhile, the stock is traded at only 35X only the expected free cash flow for this year. In another context, this will be multiple, but with free cash flow now positive and accelerating, it is modest. It should also be noted that with the exception of his current funds, the GRAB/FCF P/FCF decreases to only 27X.
Looking at Wall Street’s feelings on the arrow, GRA is a strong classification to buy consensus on the basis of 10 purchases and two contracts that have been appointed in the past three months. The average target price for GRAB is $ 5.65 per share It means approximately 22.5 % of the upscale capabilities over the next twelve months.
The GRAB turns into the profitable profitable company, making it a prominent opportunity in Southeast Asia at current price levels. Asia’s opponent of the share indicates that it is still said to be less than 2025, when it is expected to become the year 2025 years of additional revenue growth, margin expansion, and cash growth.
Meanwhile, the fireworks potential for integration and purchases increases, but even if the deal is not achieved with Goto, the upward trend seems important at $ 4.50 per share. The safety net is also wide, given the public budget rich in criticism and the pessimistic feeling surrounding the arrow.
