There are a ton of different investment opportunities out there that can make all the sense in the world. And sometimes, all it takes is the right presentation to make a mark and get you involved.
That is what a Grab investor presentation can potentially offer. The Singapore-based company has been making a name for itself ever since it debuted in 2012. If you are considering investing in Grab, here are a few essential pieces of information worth knowing.
What is Grab?
Grab, which has the Grab app, is a provider of payment services for food delivery and transportation. It is part of Grab Holdings Inc., which is a multinational technology company based in Singapore.
All across Asia, Grab is one of the most popular apps for things like offering rides, food delivery, and even financial services. Those financial services include things like payments, investments, insurance, and loans, all of which can be easily accessed right through the smartphone app.
It launched in 2012, originally as a ridesharing app, much like Uber. Its expansion into other areas since then only underscores how successful the company has been throughout the last decade.
Who are the Investors of Grab?
There are a plethora of investors in Grab. Those investors own small stakes in the company, with the top holders having anywhere between 118,000 and 198,000 shares owned. Among the major shareholders are names like Morgan Stanley Investment Management, Capital Research & Management, Mitsubishi UFJ Asset Management, Altimeter Capital Management LP, BlackRock Fund advisors, and T.Rowe Price Associates.
That is just a fraction of the investors in the company. The fact that there are so many different major investment firms getting in on investing with Grab shows the strength of the company as well as its potential for the future.
Currently, Morgan Stanley Investment Management is the single largest shareholder, with just over 5% of the total stock issued. They also have different offshoots of their company (like Morgan Stanley & CO., LLC) that have smaller stakes of ownership.
Is Grab a Good Investment?
When it comes to any investment opportunity, the ultimate question is whether or not it is a sound investment. Because it is considered a “super app,” one that provides food delivery, transportation, and payment services all throughout Southeast Asia, Grab can be considered a good investment.
The stock opened at roughly $13 back on its first day of trading. Though it has shown slow growth and a lack of profits so far, that is the concern only for those who are looking for fast profits instead of long-term growth.
The feeling is that those who have dumped their stock did so prematurely. Grab finished 2021 with more than 21 million average monthly transacting users. Though that is down 3% from the previous year, it is still a huge portion of the market share, and it can be partially attributed to lockdowns that have come from COVID-19.
What matters, however, is that their gross merchandise volume rose by nearly 30%, up to $16.1 billion. This more than offset the drop from its mobility gross merchandise volume. Its total revenue rose by 44% over the year.
Will Grab Turn a Profit?
We know that Grab is struggling a bit with overall growth despite having the right numbers in certain areas. They have major losses from 2020 ($2.75 billion) and 2021 ($3.56 billion), but that is before adjusting for things like taxes, depreciation, and amortization (EBITA).
The losses are widening. This might seem alarming at first but this is due to the fact that Grab continues to expand its market share. There are also plans in place to support drivers as the cost of fuel seems to only climb more steadily.
For investors, that red ink can be concerning, but it doesn’t outline the entire picture. It is also alarming because its cash and equivalents declined by over a third in the first quarter of 2022. There is room for fresh capital, but it can be difficult to get the kind of attractive rates that make sense, especially in the current market.
Because of that, it can no longer be considered a value play. It trades at more than 10 times what this year’s sales reflect after the initial post-IPO decline. Keep in mind that Lyft and Uber—which are growing slower but are gaining profitability—trade at less than two times current sales.
The high ratio makes it a little tougher in terms of stock. But it is a recommended stock, particularly in a tough market. More and more investors are looking for diversified, cheap plays, especially within the Southeast Asian market. Companies like Grab and Sea Limited are seen as speculative buys even still.
How Do You Invest in a Presentation?
One of the ways in which to invest in the company is through the Grab investor presentation. The presentation is the best way to learn about how the company is progressing, what kind of plans it has moving forward, and what numbers will look like going forward.
Keep in mind that these investor meetings are not just open to anyone. For the most part, they are only open to investment firms. Still, it can make for a more informative look into the business at large and whether it makes sense for a particular firm.
Grab has proven itself to be a powerhouse in Southeast Asia with its “super app” that provides transportation, food delivery, and even financial services. Because of its diversity, it can make Grab a sound investment idea.
Despite a lack of sharp growth, there has been steady growth in the areas that matter. For investors who are in it for the long haul, it is the kind of growth that inspires confidence in the investment over the long term.