TWILIO INC - A (TWLO) Stock Fundamental Analysis
NYSE:TWLO - New York Stock Exchange, Inc. - US90138F1021 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TWLO. TWLO was compared to 82 industry peers in the IT Services industry. No worries on liquidiy or solvency for TWLO as it has an excellent financial health rating, but there are worries on the profitability. TWLO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TWLO was profitable.
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
The Return On Assets of TWLO (-1.11%) is comparable to the rest of the industry.
TWLO has a Return On Equity (-1.38%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.11% | ||
| ROE | -1.38% | ||
| ROIC | N/A |
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 has a Gross Margin of 51.10%. This is in the better half of the industry: TWLO outperforms 74.36% of its industry peers.
In the last couple of years the Gross Margin of TWLO has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for TWLO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 51.1% |
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
TWLO does not have a ROIC to compare to the WACC, probably because it is not profitable.
TWLO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TWLO has more shares outstanding
TWLO has a worse debt/assets ratio than last year.
2.2 Solvency
TWLO has an Altman-Z score of 5.37. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.37, TWLO is in the better half of the industry, outperforming 75.64% of the companies in the same industry.
The Debt to FCF ratio of TWLO is 1.51, which is an excellent value as it means it would take TWLO, only 1.51 years of fcf income to pay off all of its debts.
TWLO has a better Debt to FCF ratio (1.51) than 74.36% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that TWLO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.12, TWLO is doing good in the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 5.37 |
ROIC/WACCN/A
WACC10.51%
2.3 Liquidity
TWLO has a Current Ratio of 4.20. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TWLO (4.20) is better than 93.59% of its industry peers.
TWLO has a Quick Ratio of 4.20. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
TWLO's Quick ratio of 4.20 is amongst the best of the industry. TWLO outperforms 93.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.61% 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.
The Revenue has been growing slightly by 7.32% in the past year.
The Revenue has been growing by 31.48% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)50.61%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%16.28%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%11.05%
3.2 Future
The Earnings Per Share is expected to grow by 13.05% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.31% on average over the next years.
EPS Next Y19.01%
EPS Next 2Y18.52%
EPS Next 3Y19.11%
EPS Next 5Y13.05%
Revenue Next Year8.32%
Revenue Next 2Y8.3%
Revenue Next 3Y8.49%
Revenue Next 5Y7.31%
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
With a Price/Earnings ratio of 30.98, TWLO can be considered very expensive at the moment.
TWLO's Price/Earnings is on the same level as the industry average.
TWLO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
TWLO is valuated quite expensively with a Price/Forward Earnings ratio of 26.03.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TWLO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.68. TWLO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.98 | ||
| Fwd PE | 26.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TWLO is valued a bit more expensive than 61.54% of the companies in the same industry.
TWLO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.67 | ||
| EV/EBITDA | 90.14 |
4.3 Compensation for Growth
TWLO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TWLO's earnings are expected to grow with 19.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.63
PEG (5Y)0.35
EPS Next 2Y18.52%
EPS Next 3Y19.11%
5. Dividend
5.1 Amount
No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
114.31
-3.69 (-3.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners83.14%
Inst Owner Change0.44%
Ins Owners0.11%
Ins Owner Change-3.89%
Market Cap17.53B
Analysts75.68
Price Target140.87 (23.24%)
Short Float %2.4%
Short Ratio1.04
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)1
Avg EPS beat(2)5.84%
Min EPS beat(2)-5.36%
Max EPS beat(2)17.03%
EPS beat(4)3
Avg EPS beat(4)16.39%
Min EPS beat(4)-5.36%
Max EPS beat(4)31.71%
EPS beat(8)7
Avg EPS beat(8)46.15%
EPS beat(12)11
Avg EPS beat(12)73.78%
EPS beat(16)15
Avg EPS beat(16)73.35%
Revenue beat(2)1
Avg Revenue beat(2)0.33%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)1.67%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)1.67%
Revenue beat(8)5
Avg Revenue beat(8)0.69%
Revenue beat(12)7
Avg Revenue beat(12)0.42%
Revenue beat(16)11
Avg Revenue beat(16)2.34%
PT rev (1m)41.28%
PT rev (3m)84.1%
EPS NQ rev (1m)3.17%
EPS NQ rev (3m)4.73%
EPS NY rev (1m)0.63%
EPS NY rev (3m)1.6%
Revenue NQ rev (1m)1.94%
Revenue NQ rev (3m)2.2%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.98 | ||
| Fwd PE | 26.03 | ||
| P/S | 3.93 | ||
| P/FCF | 26.67 | ||
| P/OCF | 24.48 | ||
| P/B | 2.2 | ||
| P/tB | 7.09 | ||
| EV/EBITDA | 90.14 |
EPS(TTM)3.69
EY3.23%
EPS(NY)4.39
Fwd EY3.84%
FCF(TTM)4.29
FCFY3.75%
OCF(TTM)4.67
OCFY4.09%
SpS29.07
BVpS51.85
TBVpS16.11
PEG (NY)1.63
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.11% | ||
| ROE | -1.38% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 51.1% | ||
| FCFM | 14.75% |
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
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 3Y1.45%
GM growth 5Y-0.98%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 6.06 | ||
| Cap/Depr | 28.54% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 437.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.2 | ||
| Altman-Z | 5.37 |
F-Score6
WACC10.51%
ROIC/WACCN/A
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)50.61%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%16.28%
EPS Next Y19.01%
EPS Next 2Y18.52%
EPS Next 3Y19.11%
EPS Next 5Y13.05%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%11.05%
Revenue Next Year8.32%
Revenue Next 2Y8.3%
Revenue Next 3Y8.49%
Revenue Next 5Y7.31%
EBIT growth 1Y89.13%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year37.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y80.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y72.69%
OCF growth 3YN/A
OCF growth 5Y119.52%