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THOUGHTWORKS HOLDING INC (TWKS) Stock Fundamental Analysis

NASDAQ:TWKS - Nasdaq - US88546E1055 - Common Stock - Currency: USD

4.47  -0.02 (-0.45%)

After market: 4.47 0 (0%)

Fundamental Rating

3

Taking everything into account, TWKS scores 3 out of 10 in our fundamental rating. TWKS was compared to 82 industry peers in the IT Services industry. TWKS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. TWKS does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year TWKS has reported negative net income.
In the past year TWKS has reported a negative cash flow from operations.
In multiple years TWKS reported negative net income over the last 5 years.
Each year in the past 5 years TWKS had a positive operating cash flow.
TWKS Yearly Net Income VS EBIT VS OCF VS FCFTWKS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 50M -50M 100M -100M

1.2 Ratios

TWKS has a Return On Assets of -9.28%. This is in the lower half of the industry: TWKS underperforms 69.51% of its industry peers.
TWKS has a Return On Equity (-15.86%) which is comparable to the rest of the industry.
Industry RankSector Rank
ROA -9.28%
ROE -15.86%
ROIC N/A
ROA(3y)-5.48%
ROA(5y)-1.75%
ROE(3y)-10.33%
ROE(5y)-2.96%
ROIC(3y)N/A
ROIC(5y)N/A
TWKS Yearly ROA, ROE, ROICTWKS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 5 -5 -10

1.3 Margins

TWKS's Gross Margin of 29.59% is on the low side compared to the rest of the industry. TWKS is outperformed by 63.41% of its industry peers.
In the last couple of years the Gross Margin of TWKS has declined.
TWKS does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 29.59%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.34%
GM growth 5YN/A
TWKS Yearly Profit, Operating, Gross MarginsTWKS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 10 20 30 40

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5

2. Health

2.1 Basic Checks

TWKS does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, TWKS has more shares outstanding
TWKS has a better debt/assets ratio than last year.
TWKS Yearly Shares OutstandingTWKS Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 100M 200M 300M
TWKS Yearly Total Debt VS Total AssetsTWKS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 500M 1B

2.2 Solvency

TWKS has an Altman-Z score of 2.35. This is not the best score and indicates that TWKS is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.35, TWKS is in line with its industry, outperforming 45.12% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that TWKS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.39, TWKS perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Altman-Z 2.35
ROIC/WACCN/A
WACC10.8%
TWKS Yearly LT Debt VS Equity VS FCFTWKS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.3 Liquidity

TWKS has a Current Ratio of 2.59. This indicates that TWKS is financially healthy and has no problem in meeting its short term obligations.
TWKS has a Current ratio of 2.59. This is in the better half of the industry: TWKS outperforms 74.39% of its industry peers.
TWKS has a Quick Ratio of 2.59. This indicates that TWKS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.59, TWKS is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.59
Quick Ratio 2.59
TWKS Yearly Current Assets VS Current LiabilitesTWKS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 200M 400M 600M

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3

3. Growth

3.1 Past

TWKS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -100.00%.
Looking at the last year, TWKS shows a very negative growth in Revenue. The Revenue has decreased by -13.07% in the last year.
Measured over the past years, TWKS shows a quite strong growth in Revenue. The Revenue has been growing by 11.94% on average per year.
EPS 1Y (TTM)-100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
Revenue 1Y (TTM)-13.07%
Revenue growth 3Y11.94%
Revenue growth 5YN/A
Sales Q2Q%-6.7%

3.2 Future

TWKS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.97% yearly.
The Revenue is expected to grow by 2.29% on average over the next years.
EPS Next Y-69.48%
EPS Next 2Y18.61%
EPS Next 3Y28.97%
EPS Next 5YN/A
Revenue Next Year-11.5%
Revenue Next 2Y-2.79%
Revenue Next 3Y2.29%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
TWKS Yearly Revenue VS EstimatesTWKS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
TWKS Yearly EPS VS EstimatesTWKS Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Forward Earnings ratio of 26.48, TWKS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as TWKS.
TWKS is valuated cheaply when we compare the Price/Forward Earnings ratio to 96.58, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 26.48
TWKS Price Earnings VS Forward Price EarningsTWKS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
TWKS Per share dataTWKS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

A more expensive valuation may be justified as TWKS's earnings are expected to grow with 28.97% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.61%
EPS Next 3Y28.97%

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0

5. Dividend

5.1 Amount

TWKS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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THOUGHTWORKS HOLDING INC

NASDAQ:TWKS (11/12/2024, 8:00:01 PM)

After market: 4.47 0 (0%)

4.47

-0.02 (-0.45%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-12 2024-11-12/bmo
Earnings (Next)N/A N/A
Inst Owners31.08%
Inst Owner Change-65.72%
Ins Owners1.12%
Ins Owner Change-5498.13%
Market Cap1.45B
Analysts72
Price Target4.34 (-2.91%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-710.28%
Min EPS beat(2)-1395.67%
Max EPS beat(2)-24.89%
EPS beat(4)1
Avg EPS beat(4)-351.82%
Min EPS beat(4)-1395.67%
Max EPS beat(4)51.41%
EPS beat(8)2
Avg EPS beat(8)-183.3%
EPS beat(12)4
Avg EPS beat(12)-118.72%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)0.24%
Revenue beat(4)1
Avg Revenue beat(4)-2.56%
Min Revenue beat(4)-7.52%
Max Revenue beat(4)0.24%
Revenue beat(8)1
Avg Revenue beat(8)-2.37%
Revenue beat(12)2
Avg Revenue beat(12)-1.59%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)6.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-39.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 26.48
P/S 1.41
P/FCF N/A
P/OCF N/A
P/B 1.99
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0
EYN/A
EPS(NY)0.17
Fwd EY3.78%
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)0
OCFYN/A
SpS3.18
BVpS2.25
TBVpS-0.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -9.28%
ROE -15.86%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 29.59%
FCFM N/A
ROA(3y)-5.48%
ROA(5y)-1.75%
ROE(3y)-10.33%
ROE(5y)-2.96%
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 3Y-8.34%
GM growth 5YN/A
F-Score1
Asset Turnover0.83
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 39.74%
Cap/Sales 1.26%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.59
Quick Ratio 2.59
Altman-Z 2.35
F-Score1
WACC10.8%
ROIC/WACCN/A
Cap/Depr(3y)61.42%
Cap/Depr(5y)64.3%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
EPS Next Y-69.48%
EPS Next 2Y18.61%
EPS Next 3Y28.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.07%
Revenue growth 3Y11.94%
Revenue growth 5YN/A
Sales Q2Q%-6.7%
Revenue Next Year-11.5%
Revenue Next 2Y-2.79%
Revenue Next 3Y2.29%
Revenue Next 5YN/A
EBIT growth 1Y-323.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2826.99%
EBIT Next 3Y288.88%
EBIT Next 5YN/A
FCF growth 1Y-125.69%
FCF growth 3Y-28.6%
FCF growth 5YN/A
OCF growth 1Y-101.37%
OCF growth 3Y-26.84%
OCF growth 5YN/A