TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWLO - US90138F1021 - Common Stock
142.9 USD
+3.52 (+2.53%)
142.85 USD
-0.05 (-0.03%)
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
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
TWLO has a Return On Assets of 0.69%. This is comparable to the rest of the industry: TWLO outperforms 48.86% of its industry peers.
With a Return On Equity value of 0.85%, TWLO perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
TWLO's Return On Invested Capital of 0.97% is in line compared to the rest of the industry. TWLO outperforms 48.86% of 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
Looking at the Profit Margin, with a value of 1.37%, TWLO is in line with its industry, outperforming 48.86% of the companies in the same industry.
Looking at the Operating Margin, with a value of 2.24%, TWLO is in line with its industry, outperforming 46.59% of the companies in the same industry.
Looking at the Gross Margin, with a value of 49.35%, TWLO is in the better half of the industry, outperforming 70.45% 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 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
TWLO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TWLO has less shares outstanding
TWLO has more shares outstanding than it did 5 years ago.
TWLO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.69 indicates that TWLO is not in any danger for bankruptcy at the moment.
TWLO's Altman-Z score of 6.69 is amongst the best of the industry. TWLO outperforms 84.09% 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.
The Debt to FCF ratio of TWLO (1.27) is better than 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.
The Debt to Equity ratio of TWLO (0.13) is better than 67.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.69 |
ROIC/WACC0.11
WACC9.1%
2.3 Liquidity
A Current Ratio of 4.68 indicates that TWLO has no problem at all paying its short term obligations.
TWLO has a better Current ratio (4.68) than 88.64% of its industry peers.
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 has a better Quick ratio (4.68) than 88.64% 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.
The Earnings Per Share has been growing by 89.75% on average over the past years. This is a very strong growth
Looking at the last year, TWLO shows a quite strong growth in Revenue. The Revenue has grown by 12.84% in the last year.
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
The Earnings Per Share is expected to grow by 16.65% on average over the next years. This is quite good.
Based on estimates for the next years, TWLO will show a quite strong growth in Revenue. The Revenue will grow by 8.41% on average per year.
EPS Next Y32.58%
EPS Next 2Y22.69%
EPS Next 3Y20.23%
EPS Next 5Y16.65%
Revenue Next Year13.02%
Revenue Next 2Y10.87%
Revenue Next 3Y9.84%
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.
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
A Price/Earnings ratio of 31.20 indicates a quite expensive valuation of TWLO.
The rest of the industry has a similar Price/Earnings ratio as TWLO.
The average S&P500 Price/Earnings ratio is at 26.92. TWLO is around the same levels.
A Price/Forward Earnings ratio of 25.73 indicates a quite expensive valuation of TWLO.
TWLO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.57. TWLO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.2 | ||
| Fwd PE | 25.73 |
4.2 Price Multiples
TWLO's Enterprise Value to EBITDA ratio is in line with the industry average.
TWLO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.68 | ||
| EV/EBITDA | 58.38 |
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.
A more expensive valuation may be justified as TWLO's earnings are expected to grow with 20.23% in the coming years.
PEG (NY)0.96
PEG (5Y)0.35
EPS Next 2Y22.69%
EPS Next 3Y20.23%
5. Dividend
5.1 Amount
No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
142.9
+3.52 (+2.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.77%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change-1.55%
Market Cap21.67B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.33
Price Target141.34 (-1.09%)
Short Float %3.06%
Short Ratio2.05
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)0.88%
PT rev (3m)6.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.75%
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 | 31.2 | ||
| Fwd PE | 25.73 | ||
| P/S | 4.42 | ||
| P/FCF | 27.68 | ||
| P/OCF | 25.79 | ||
| P/B | 2.74 | ||
| P/tB | 8.68 | ||
| EV/EBITDA | 58.38 |
EPS(TTM)4.58
EY3.21%
EPS(NY)5.55
Fwd EY3.89%
FCF(TTM)5.16
FCFY3.61%
OCF(TTM)5.54
OCFY3.88%
SpS32.29
BVpS52.08
TBVpS16.45
PEG (NY)0.96
PEG (5Y)0.35
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 | 6.69 |
F-Score6
WACC9.1%
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 2Y10.87%
Revenue Next 3Y9.84%
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.