TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - NYSE:TWLO - US90138F1021 - Common Stock
127.48 USD
-3.93 (-2.99%)
127.48 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TWLO. TWLO was compared to 85 industry peers in the IT Services industry. TWLO has a great financial health rating, but its profitability evaluates not so good. TWLO is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
TWLO had positive earnings in the past year.
In the past year TWLO had a positive cash flow from operations.
In the past 5 years TWLO always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: TWLO reported negative operating cash flow in multiple years.
1.2 Ratios
TWLO has a Return On Assets (0.69%) which is in line with its industry peers.
The Return On Equity of TWLO (0.85%) is comparable to the rest of the industry.
TWLO has a Return On Invested Capital (0.97%) which is in line with its industry peers.
| 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
The Profit Margin of TWLO (1.37%) is comparable to the rest of the industry.
TWLO has a Operating Margin of 2.24%. This is comparable to the rest of the industry: TWLO outperforms 44.71% of its industry peers.
TWLO has a better Gross Margin (49.35%) than 68.24% 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.
Compared to 1 year ago, TWLO has less shares outstanding
The number of shares outstanding for TWLO has been increased compared to 5 years ago.
TWLO has a worse debt/assets ratio than last year.
2.2 Solvency
TWLO has an Altman-Z score of 6.37. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
TWLO has a better Altman-Z score (6.37) than 76.47% of its industry peers.
The Debt to FCF ratio of TWLO is 1.27, which is an excellent value as it means it would take TWLO, only 1.27 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.27, TWLO is doing good in the industry, outperforming 75.29% of the companies in the same industry.
TWLO has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
TWLO has a Debt to Equity ratio of 0.13. This is in the better half of the industry: TWLO outperforms 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.37 |
ROIC/WACC0.11
WACC8.73%
2.3 Liquidity
A Current Ratio of 4.68 indicates that TWLO has no problem at all paying its short term obligations.
TWLO's Current ratio of 4.68 is amongst the best of the industry. TWLO outperforms 88.24% of its industry peers.
A Quick Ratio of 4.68 indicates that TWLO has no problem at all paying its short term obligations.
TWLO has a better Quick ratio (4.68) than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.68 | ||
| Quick Ratio | 4.68 |
3. Growth
3.1 Past
TWLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.01%, which is quite impressive.
Measured over the past years, TWLO shows a very strong growth in Earnings Per Share. The EPS has been growing by 89.75% on average per year.
TWLO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.84%.
The Revenue has been growing by 31.48% on average over the past years. This is a very strong growth!
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
TWLO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.65% yearly.
The Revenue is expected to grow by 8.23% on average over the next years. This is quite good.
EPS Next Y31.79%
EPS Next 2Y22.42%
EPS Next 3Y20.4%
EPS Next 5Y16.65%
Revenue Next Year12.71%
Revenue Next 2Y10.72%
Revenue Next 3Y9.77%
Revenue Next 5Y8.23%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
TWLO is valuated quite expensively with a Price/Earnings ratio of 27.83.
The rest of the industry has a similar Price/Earnings ratio as TWLO.
TWLO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.13.
The Price/Forward Earnings ratio is 23.05, which indicates a rather expensive current valuation of TWLO.
TWLO's Price/Forward Earnings ratio is in line with the industry average.
TWLO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.83 | ||
| Fwd PE | 23.05 |
4.2 Price Multiples
TWLO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TWLO is more expensive than 61.18% of the companies in the same industry.
TWLO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.99 | ||
| EV/EBITDA | 55.23 |
4.3 Compensation for Growth
TWLO's 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 20.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)0.31
EPS Next 2Y22.42%
EPS Next 3Y20.4%
5. Dividend
5.1 Amount
No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
127.48
-3.93 (-2.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners89.15%
Inst Owner Change0.18%
Ins Owners0.11%
Ins Owner Change-3.69%
Market Cap19.56B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.33
Price Target132.35 (3.82%)
Short Float %4.31%
Short Ratio1.97
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)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)0%
PT rev (3m)0.85%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-4.71%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.83 | ||
| Fwd PE | 23.05 | ||
| P/S | 3.99 | ||
| P/FCF | 24.99 | ||
| P/OCF | 23.28 | ||
| P/B | 2.48 | ||
| P/tB | 7.84 | ||
| EV/EBITDA | 55.23 |
EPS(TTM)4.58
EY3.59%
EPS(NY)5.53
Fwd EY4.34%
FCF(TTM)5.1
FCFY4%
OCF(TTM)5.48
OCFY4.3%
SpS31.91
BVpS51.46
TBVpS16.26
PEG (NY)0.88
PEG (5Y)0.31
Graham Number72.82
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 | 6.37 |
F-Score6
WACC8.73%
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 Y31.79%
EPS Next 2Y22.42%
EPS Next 3Y20.4%
EPS Next 5Y16.65%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%14.71%
Revenue Next Year12.71%
Revenue Next 2Y10.72%
Revenue Next 3Y9.77%
Revenue Next 5Y8.23%
EBIT growth 1Y205.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.77%
EBIT Next 3Y23.53%
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.
What is the valuation status of TWILIO INC - A (TWLO) stock?
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.
What is the financial health of TWILIO INC - A (TWLO) stock?
The financial health rating of TWILIO INC - A (TWLO) is 7 / 10.
What is the expected EPS growth for TWILIO INC - A (TWLO) stock?
The Earnings per Share (EPS) of TWILIO INC - A (TWLO) is expected to grow by 31.79% in the next year.