TWILIO INC - A (TWLO) Stock Fundamental Analysis

NYSE:TWLO • US90138F1021

107.36 USD
-5.64 (-4.99%)
Last: Feb 17, 2026, 10:54 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to TWLO. TWLO was compared to 87 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.


Dividend Valuation Growth Profitability Health

3

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.
  • In the past 5 years TWLO reported 4 times 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.
TWLO Yearly Net Income VS EBIT VS OCF VS FCFTWLO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B -1B

1.2 Ratios

  • TWLO's Return On Assets of 0.35% is in line compared to the rest of the industry. TWLO outperforms 49.43% of its industry peers.
  • TWLO's Return On Equity of 0.43% is in line compared to the rest of the industry. TWLO outperforms 51.72% of its industry peers.
  • TWLO has a Return On Invested Capital (1.02%) which is in line with its industry peers.
Industry RankSector Rank
ROA 0.35%
ROE 0.43%
ROIC 1.02%
ROA(3y)-3.17%
ROA(5y)-5.36%
ROE(3y)-3.79%
ROE(5y)-6.38%
ROIC(3y)N/A
ROIC(5y)N/A
TWLO Yearly ROA, ROE, ROICTWLO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -5 -10 -15 -20 -25

1.3 Margins

  • TWLO's Profit Margin of 0.67% is in line compared to the rest of the industry. TWLO outperforms 49.43% of its industry peers.
  • TWLO's Operating Margin of 2.92% is in line compared to the rest of the industry. TWLO outperforms 45.98% of its industry peers.
  • With a decent Gross Margin value of 48.92%, TWLO is doing good in the industry, outperforming 73.56% of the companies in the same industry.
  • In the last couple of years the Gross Margin of TWLO has remained more or less at the same level.
Industry RankSector Rank
OM 2.92%
PM (TTM) 0.67%
GM 48.92%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.06%
GM growth 5Y-1.21%
TWLO Yearly Profit, Operating, Gross MarginsTWLO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TWLO is destroying value.
  • The number of shares outstanding for TWLO has been reduced compared to 1 year ago.
  • TWLO has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, TWLO has a worse debt to assets ratio.
TWLO Yearly Shares OutstandingTWLO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
TWLO Yearly Total Debt VS Total AssetsTWLO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 4.98 indicates that TWLO is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.98, TWLO belongs to the top of the industry, outperforming 81.61% of the companies in the same industry.
  • The Debt to FCF ratio of TWLO is 1.05, which is an excellent value as it means it would take TWLO, only 1.05 years of fcf income to pay off all of its debts.
  • TWLO has a Debt to FCF ratio of 1.05. This is in the better half of the industry: TWLO outperforms 78.16% of its industry peers.
  • A Debt/Equity ratio of 0.13 indicates that TWLO is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.13, TWLO is in the better half of the industry, outperforming 67.82% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.05
Altman-Z 4.98
ROIC/WACC0.11
WACC9.29%
TWLO Yearly LT Debt VS Equity VS FCFTWLO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 4.03 indicates that TWLO has no problem at all paying its short term obligations.
  • TWLO's Current ratio of 4.03 is amongst the best of the industry. TWLO outperforms 85.06% of its industry peers.
  • A Quick Ratio of 4.03 indicates that TWLO has no problem at all paying its short term obligations.
  • With an excellent Quick ratio value of 4.03, TWLO belongs to the best of the industry, outperforming 85.06% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.03
Quick Ratio 4.03
TWLO Yearly Current Assets VS Current LiabilitesTWLO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 33.06% over the past year.
  • Measured over the past years, TWLO shows a very strong growth in Earnings Per Share. The EPS has been growing by 84.45% on average per year.
  • The Revenue has grown by 13.66% in the past year. This is quite good.
  • The Revenue has been growing by 23.53% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)33.06%
EPS 3YN/A
EPS 5Y84.45%
EPS Q2Q%33%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y9.82%
Revenue growth 5Y23.53%
Sales Q2Q%14.32%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.50% on average over the next years. This is quite good.
  • Based on estimates for the next years, TWLO will show a small growth in Revenue. The Revenue will grow by 7.08% on average per year.
EPS Next Y12.93%
EPS Next 2Y13.97%
EPS Next 3Y13.83%
EPS Next 5Y11.5%
Revenue Next Year12.17%
Revenue Next 2Y10.08%
Revenue Next 3Y9.9%
Revenue Next 5Y7.08%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
TWLO Yearly Revenue VS EstimatesTWLO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B
TWLO Yearly EPS VS EstimatesTWLO Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0 5 10

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.87, which indicates a rather expensive current valuation of TWLO.
  • TWLO's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.19. TWLO is around the same levels.
  • The Price/Forward Earnings ratio is 19.36, which indicates a rather expensive current valuation of TWLO.
  • The rest of the industry has a similar Price/Forward Earnings ratio as TWLO.
  • TWLO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 21.87
Fwd PE 19.36
TWLO Price Earnings VS Forward Price EarningsTWLO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as TWLO.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as TWLO.
Industry RankSector Rank
P/FCF 17.22
EV/EBITDA 40.39
TWLO Per share dataTWLO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

  • TWLO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A more expensive valuation may be justified as TWLO's earnings are expected to grow with 13.83% in the coming years.
PEG (NY)1.69
PEG (5Y)0.26
EPS Next 2Y13.97%
EPS Next 3Y13.83%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • TWLO does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

TWILIO INC - A

NYSE:TWLO (2/17/2026, 10:54:01 AM)

107.36

-5.64 (-4.99%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-12
Earnings (Next)04-29
Inst Owners97.77%
Inst Owner Change-9.18%
Ins Owners0.11%
Ins Owner Change-3.25%
Market Cap16.28B
Revenue(TTM)5.07B
Net Income(TTM)33.83M
Analysts77.78
Price Target150.65 (40.32%)
Short Float %4.22%
Short Ratio2.38
Dividend
Industry RankSector 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)9.26%
Min EPS beat(2)5.47%
Max EPS beat(2)13.05%
EPS beat(4)4
Avg EPS beat(4)12.12%
Min EPS beat(4)5.47%
Max EPS beat(4)18.47%
EPS beat(8)7
Avg EPS beat(8)14.26%
EPS beat(12)11
Avg EPS beat(12)34.8%
EPS beat(16)15
Avg EPS beat(16)58.37%
Revenue beat(2)2
Avg Revenue beat(2)1.58%
Min Revenue beat(2)1.48%
Max Revenue beat(2)1.67%
Revenue beat(4)4
Avg Revenue beat(4)1.35%
Min Revenue beat(4)0.9%
Max Revenue beat(4)1.67%
Revenue beat(8)6
Avg Revenue beat(8)0.74%
Revenue beat(12)9
Avg Revenue beat(12)0.91%
Revenue beat(16)11
Avg Revenue beat(16)0.65%
PT rev (1m)6.59%
PT rev (3m)13.83%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)0.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.27%
Valuation
Industry RankSector Rank
PE 21.87
Fwd PE 19.36
P/S 3.21
P/FCF 17.22
P/OCF 16.22
P/B 2.08
P/tB 6.82
EV/EBITDA 40.39
EPS(TTM)4.91
EY4.57%
EPS(NY)5.54
Fwd EY5.16%
FCF(TTM)6.24
FCFY5.81%
OCF(TTM)6.62
OCFY6.16%
SpS33.42
BVpS51.59
TBVpS15.75
PEG (NY)1.69
PEG (5Y)0.26
Graham Number75.49
Profitability
Industry RankSector Rank
ROA 0.35%
ROE 0.43%
ROCE 1.66%
ROIC 1.02%
ROICexc 1.42%
ROICexgc 9.27%
OM 2.92%
PM (TTM) 0.67%
GM 48.92%
FCFM 18.66%
ROA(3y)-3.17%
ROA(5y)-5.36%
ROE(3y)-3.79%
ROE(5y)-6.38%
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 3Y1.06%
GM growth 5Y-1.21%
F-Score6
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.05
Debt/EBITDA 2.89
Cap/Depr 29.58%
Cap/Sales 1.14%
Interest Coverage 250
Cash Conversion 292.24%
Profit Quality 2794.31%
Current Ratio 4.03
Quick Ratio 4.03
Altman-Z 4.98
F-Score6
WACC9.29%
ROIC/WACC0.11
Cap/Depr(3y)25.38%
Cap/Depr(5y)27.94%
Cap/Sales(3y)1.23%
Cap/Sales(5y)1.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.06%
EPS 3YN/A
EPS 5Y84.45%
EPS Q2Q%33%
EPS Next Y12.93%
EPS Next 2Y13.97%
EPS Next 3Y13.83%
EPS Next 5Y11.5%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y9.82%
Revenue growth 5Y23.53%
Sales Q2Q%14.32%
Revenue Next Year12.17%
Revenue Next 2Y10.08%
Revenue Next 3Y9.9%
Revenue Next 5Y7.08%
EBIT growth 1Y465.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year29.68%
EBIT Next 3YN/A
EBIT Next 5Y6.77%
FCF growth 1Y43.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y40.07%
OCF growth 3YN/A
OCF growth 5Y98.38%

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.