TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWLO - US90138F1021 - Common Stock
120.27 USD
+0.55 (+0.46%)
121 USD
+0.73 (+0.61%)
TWLO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. While TWLO has a great health rating, there are worries on its profitability. TWLO is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
- TWLO had positive earnings in the past year.
- TWLO had a positive operating cash flow in the past year.
- TWLO had negative earnings in each of the past 5 years.
- In multiple years TWLO reported negative operating cash flow during the last 5 years.
1.2 Ratios
- TWLO's Return On Assets of 0.69% is in line compared to the rest of the industry. TWLO outperforms 48.86% of its industry peers.
- TWLO has a Return On Equity (0.85%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 0.97%, TWLO is in line with its industry, outperforming 48.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 0.85% | ||
| ROIC | 0.97% |
ROA(3y)-6.62%
ROA(5y)-6.47%
ROE(3y)-7.9%
ROE(5y)-7.62%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- TWLO's Profit Margin of 1.37% is in line compared to the rest of the industry. TWLO outperforms 48.86% of its industry peers.
- TWLO has a Operating Margin (2.24%) which is comparable to the rest of the industry.
- TWLO's Gross Margin of 49.35% is fine compared to the rest of the industry. TWLO outperforms 70.45% of its industry peers.
- TWLO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.24% | ||
| PM (TTM) | 1.37% | ||
| GM | 49.35% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.45%
GM growth 5Y-0.98%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TWLO is destroying value.
- TWLO has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TWLO has more shares outstanding
- The debt/assets ratio for TWLO is higher compared to a year ago.
2.2 Solvency
- TWLO has an Altman-Z score of 5.73. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
- TWLO has a better Altman-Z score (5.73) than 81.82% of its industry peers.
- TWLO has a debt to FCF ratio of 1.27. This is a very positive value and a sign of high solvency as it would only need 1.27 years to pay back of all of its debts.
- TWLO has a Debt to FCF ratio of 1.27. This is in the better half of the industry: TWLO outperforms 76.14% of its industry peers.
- TWLO has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.13, TWLO is doing good in the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 5.73 |
ROIC/WACC0.11
WACC9.01%
2.3 Liquidity
- TWLO has a Current Ratio of 4.68. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 4.68, TWLO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- TWLO has a Quick Ratio of 4.68. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
- TWLO's Quick ratio of 4.68 is amongst the best of the industry. TWLO outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.68 | ||
| Quick Ratio | 4.68 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 29.01% over the past year.
- TWLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 89.75% yearly.
- TWLO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.84%.
- TWLO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.48% yearly.
EPS 1Y (TTM)29.01%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%22.55%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%14.71%
3.2 Future
- Based on estimates for the next years, TWLO will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.65% on average per year.
- TWLO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.41% yearly.
EPS Next Y32.58%
EPS Next 2Y22.69%
EPS Next 3Y20.23%
EPS Next 5Y16.65%
Revenue Next Year13.02%
Revenue Next 2Y10.85%
Revenue Next 3Y9.81%
Revenue Next 5Y8.41%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 26.26, which means the current valuation is very expensive for TWLO.
- Compared to the rest of the industry, the Price/Earnings ratio of TWLO is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.32. TWLO is around the same levels.
- A Price/Forward Earnings ratio of 21.65 indicates a rather expensive valuation of TWLO.
- TWLO's Price/Forward Earnings is on the same level as the industry average.
- TWLO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 21.65 |
4.2 Price Multiples
- TWLO's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as TWLO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.29 | ||
| EV/EBITDA | 48.95 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- TWLO's earnings are expected to grow with 20.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)0.29
EPS Next 2Y22.69%
EPS Next 3Y20.23%
5. Dividend
5.1 Amount
- TWLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
120.27
+0.55 (+0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners97.77%
Inst Owner Change0.09%
Ins Owners0.11%
Ins Owner Change-3.33%
Market Cap18.23B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.92
Price Target147.34 (22.51%)
Short Float %3.51%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2
Avg EPS beat(2)12.27%
Min EPS beat(2)11.49%
Max EPS beat(2)13.05%
EPS beat(4)3
Avg EPS beat(4)9.41%
Min EPS beat(4)-5.36%
Max EPS beat(4)18.47%
EPS beat(8)7
Avg EPS beat(8)19.26%
EPS beat(12)11
Avg EPS beat(12)63%
EPS beat(16)15
Avg EPS beat(16)58.61%
Revenue beat(2)2
Avg Revenue beat(2)1.51%
Min Revenue beat(2)1.36%
Max Revenue beat(2)1.67%
Revenue beat(4)3
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)1.67%
Revenue beat(8)6
Avg Revenue beat(8)0.7%
Revenue beat(12)9
Avg Revenue beat(12)0.83%
Revenue beat(16)11
Avg Revenue beat(16)1.04%
PT rev (1m)4.24%
PT rev (3m)11.32%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)8.78%
EPS NY rev (1m)0%
EPS NY rev (3m)5.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 21.65 | ||
| P/S | 3.72 | ||
| P/FCF | 23.29 | ||
| P/OCF | 21.7 | ||
| P/B | 2.31 | ||
| P/tB | 7.31 | ||
| EV/EBITDA | 48.95 |
EPS(TTM)4.58
EY3.81%
EPS(NY)5.55
Fwd EY4.62%
FCF(TTM)5.16
FCFY4.29%
OCF(TTM)5.54
OCFY4.61%
SpS32.29
BVpS52.08
TBVpS16.45
PEG (NY)0.81
PEG (5Y)0.29
Graham Number73.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 0.85% | ||
| ROCE | 1.22% | ||
| ROIC | 0.97% | ||
| ROICexc | 1.33% | ||
| ROICexgc | 7.8% | ||
| OM | 2.24% | ||
| PM (TTM) | 1.37% | ||
| GM | 49.35% | ||
| FCFM | 15.99% |
ROA(3y)-6.62%
ROA(5y)-6.47%
ROE(3y)-7.9%
ROE(5y)-7.62%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y1.45%
GM growth 5Y-0.98%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 29% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 273.39% | ||
| Profit Quality | 1164.55% | ||
| Current Ratio | 4.68 | ||
| Quick Ratio | 4.68 | ||
| Altman-Z | 5.73 |
F-Score6
WACC9.01%
ROIC/WACC0.11
Cap/Depr(3y)25.09%
Cap/Depr(5y)29.93%
Cap/Sales(3y)1.55%
Cap/Sales(5y)2.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.01%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%22.55%
EPS Next Y32.58%
EPS Next 2Y22.69%
EPS Next 3Y20.23%
EPS Next 5Y16.65%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%14.71%
Revenue Next Year13.02%
Revenue Next 2Y10.85%
Revenue Next 3Y9.81%
Revenue Next 5Y8.41%
EBIT growth 1Y205.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year45.26%
EBIT Next 3Y24.45%
EBIT Next 5YN/A
FCF growth 1Y897.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y528.37%
OCF growth 3YN/A
OCF growth 5Y119.52%
TWILIO INC - A / TWLO FAQ
Can you provide the ChartMill fundamental rating for TWILIO INC - A?
ChartMill assigns a fundamental rating of 5 / 10 to TWLO.
Can you provide the valuation status for TWILIO INC - A?
ChartMill assigns a valuation rating of 3 / 10 to TWILIO INC - A (TWLO). This can be considered as Overvalued.
What is the profitability of TWLO stock?
TWILIO INC - A (TWLO) has a profitability rating of 3 / 10.
Can you provide the financial health for TWLO stock?
The financial health rating of TWILIO INC - A (TWLO) is 8 / 10.