TWILIO INC - A (TWLO) Fundamental Analysis & Valuation
NYSE:TWLO • US90138F1021
Current stock price
150.45 USD
+5.15 (+3.54%)
At close:
148.6 USD
-1.85 (-1.23%)
After Hours:
This TWLO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. TWLO Profitability Analysis
1.1 Basic Checks
- TWLO had positive earnings in the past year.
- In the past year TWLO had a positive cash flow from operations.
- TWLO had negative earnings in 4 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 (0.35%) which is in line with its industry peers.
- The Return On Equity of TWLO (0.43%) is comparable to the rest of the industry.
- TWLO's Return On Invested Capital of 1.17% is in line compared to the rest of the industry. TWLO outperforms 51.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.43% | ||
| ROIC | 1.17% |
ROA(3y)-3.17%
ROA(5y)-5.36%
ROE(3y)-3.79%
ROE(5y)-6.38%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 0.67%, TWLO is in line with its industry, outperforming 51.14% of the companies in the same industry.
- TWLO has a Operating Margin of 3.35%. This is comparable to the rest of the industry: TWLO outperforms 50.00% of its industry peers.
- The Gross Margin of TWLO (48.92%) is better than 72.73% of its industry peers.
- 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 | 3.35% | ||
| 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%
2. TWLO Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TWLO is destroying value.
- TWLO has about the same amout of shares outstanding than it did 1 year ago.
- TWLO has less shares outstanding than it did 5 years ago.
- TWLO has a worse debt/assets ratio than last year.
2.2 Solvency
- TWLO has an Altman-Z score of 6.49. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.49, TWLO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- TWLO has a debt to FCF ratio of 1.05. This is a very positive value and a sign of high solvency as it would only need 1.05 years to pay back of all of its debts.
- TWLO has a Debt to FCF ratio of 1.05. This is amongst the best in the industry. TWLO outperforms 80.68% 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 67.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 6.49 |
ROIC/WACC0.11
WACC10.36%
2.3 Liquidity
- TWLO has a Current Ratio of 4.03. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
- TWLO's Current ratio of 4.03 is amongst the best of the industry. TWLO outperforms 84.09% of its industry peers.
- A Quick Ratio of 4.03 indicates that TWLO has no problem at all paying its short term obligations.
- TWLO's Quick ratio of 4.03 is amongst the best of the industry. TWLO outperforms 84.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.03 | ||
| Quick Ratio | 4.03 |
3. TWLO Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 33.06% over the past year.
- TWLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 84.45% yearly.
- The Revenue has grown by 13.66% in the past year. This is quite good.
- TWLO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.53% yearly.
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
- Based on estimates for the next years, TWLO will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.16% on average per year.
- Based on estimates for the next years, TWLO will show a quite strong growth in Revenue. The Revenue will grow by 8.50% on average per year.
EPS Next Y12.43%
EPS Next 2Y15%
EPS Next 3Y15.05%
EPS Next 5Y14.16%
Revenue Next Year13.24%
Revenue Next 2Y10.7%
Revenue Next 3Y9.82%
Revenue Next 5Y8.5%
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. TWLO Valuation Analysis
4.1 Price/Earnings Ratio
- TWLO is valuated quite expensively with a Price/Earnings ratio of 30.64.
- 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 27.79.
- A Price/Forward Earnings ratio of 27.25 indicates a quite expensive valuation of TWLO.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TWLO is on the same level as its industry peers.
- TWLO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 38.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.64 | ||
| Fwd PE | 27.25 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TWLO is on the same level as its industry peers.
- TWLO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.11 | ||
| EV/EBITDA | 51.36 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- TWLO's earnings are expected to grow with 15.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.46
PEG (5Y)0.36
EPS Next 2Y15%
EPS Next 3Y15.05%
5. TWLO Dividend Analysis
5.1 Amount
- TWLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TWLO Fundamentals: All Metrics, Ratios and Statistics
150.45
+5.15 (+3.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)04-30 2026-04-30/amc
Inst Owners94.51%
Inst Owner Change0%
Ins Owners0.12%
Ins Owner Change1.13%
Market Cap22.79B
Revenue(TTM)5.07B
Net Income(TTM)33.83M
Analysts78.89
Price Target147.67 (-1.85%)
Short Float %4.12%
Short Ratio2.44
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)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)1.45%
PT rev (3m)0.23%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.64 | ||
| Fwd PE | 27.25 | ||
| P/S | 4.5 | ||
| P/FCF | 24.11 | ||
| P/OCF | 22.72 | ||
| P/B | 2.91 | ||
| P/tB | 9.55 | ||
| EV/EBITDA | 51.36 |
EPS(TTM)4.91
EY3.26%
EPS(NY)5.52
Fwd EY3.67%
FCF(TTM)6.24
FCFY4.15%
OCF(TTM)6.62
OCFY4.4%
SpS33.44
BVpS51.62
TBVpS15.76
PEG (NY)2.46
PEG (5Y)0.36
Graham Number75.5192 (-49.8%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.43% | ||
| ROCE | 1.91% | ||
| ROIC | 1.17% | ||
| ROICexc | 1.62% | ||
| ROICexgc | 10.63% | ||
| OM | 3.35% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 2.72 | ||
| Cap/Depr | 29.58% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 274.85% | ||
| Profit Quality | 2794.31% | ||
| Current Ratio | 4.03 | ||
| Quick Ratio | 4.03 | ||
| Altman-Z | 6.49 |
F-Score6
WACC10.36%
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 Y12.43%
EPS Next 2Y15%
EPS Next 3Y15.05%
EPS Next 5Y14.16%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y9.82%
Revenue growth 5Y23.53%
Sales Q2Q%14.32%
Revenue Next Year13.24%
Revenue Next 2Y10.7%
Revenue Next 3Y9.82%
Revenue Next 5Y8.5%
EBIT growth 1Y519.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year31.63%
EBIT Next 3Y18.35%
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 Fundamental Analysis 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 2 / 10 to TWILIO INC - A (TWLO). This can be considered as Overvalued.
How profitable is TWILIO INC - A (TWLO) stock?
TWILIO INC - A (TWLO) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for TWLO stock?
The Earnings per Share (EPS) of TWILIO INC - A (TWLO) is expected to grow by 12.43% in the next year.