TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWLO - US90138F1021 - Common Stock
128.12 USD
-1.65 (-1.27%)
128.2 USD
+0.08 (+0.06%)
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 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.
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.
Looking at the Return On Equity, with a value of 0.85%, TWLO is in line with its industry, outperforming 51.76% of the companies in the same 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
Looking at the Profit Margin, with a value of 1.37%, TWLO is in line with its industry, outperforming 48.24% of the companies in the same industry.
TWLO has a Operating Margin (2.24%) which is in line with its industry peers.
With a decent Gross Margin value of 49.35%, TWLO is doing good in the industry, outperforming 70.59% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TWLO is destroying value.
The number of shares outstanding for TWLO has been reduced compared to 1 year ago.
TWLO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TWLO has a worse debt to assets ratio.
2.2 Solvency
TWLO has an Altman-Z score of 6.21. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
TWLO has a better Altman-Z score (6.21) than 83.53% 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.
TWLO's Debt to FCF ratio of 1.27 is fine compared to the rest of the industry. TWLO outperforms 74.12% 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.
TWLO has a better Debt to Equity ratio (0.13) than 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.21 |
ROIC/WACC0.11
WACC8.5%
2.3 Liquidity
TWLO has a Current Ratio of 4.68. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
TWLO has a Current ratio of 4.68. This is amongst the best in the industry. TWLO outperforms 89.41% 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's Quick ratio of 4.68 is amongst the best of the industry. TWLO outperforms 89.41% 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.
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.
Measured over the past years, TWLO shows a very strong growth in Revenue. The Revenue has been growing by 31.48% on average per year.
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
Based on estimates for the next years, TWLO will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.65% on average per year.
The Revenue is expected to grow by 8.41% 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 5Y8.41%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.97, the valuation of TWLO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TWLO.
When comparing the Price/Earnings ratio of TWLO to the average of the S&P500 Index (26.37), we can say TWLO is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.17, the valuation of TWLO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TWLO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TWLO to the average of the S&P500 Index (36.20), we can say TWLO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.97 | ||
| Fwd PE | 23.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TWLO is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TWLO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.81 | ||
| EV/EBITDA | 53.64 |
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.
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
TWLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
128.12
-1.65 (-1.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners89.15%
Inst Owner Change8.3%
Ins Owners0.11%
Ins Owner Change-3.61%
Market Cap19.42B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.33
Price Target140.1 (9.35%)
Short Float %3.85%
Short Ratio2.36
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)5.86%
PT rev (3m)6%
EPS NQ rev (1m)8.75%
EPS NQ rev (3m)9.16%
EPS NY rev (1m)4.7%
EPS NY rev (3m)4.47%
Revenue NQ rev (1m)2.75%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.97 | ||
| Fwd PE | 23.17 | ||
| P/S | 3.97 | ||
| P/FCF | 24.81 | ||
| P/OCF | 23.12 | ||
| P/B | 2.46 | ||
| P/tB | 7.79 | ||
| EV/EBITDA | 53.64 |
EPS(TTM)4.58
EY3.57%
EPS(NY)5.53
Fwd EY4.32%
FCF(TTM)5.16
FCFY4.03%
OCF(TTM)5.54
OCFY4.33%
SpS32.29
BVpS52.08
TBVpS16.45
PEG (NY)0.88
PEG (5Y)0.31
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 | 6.21 |
F-Score6
WACC8.5%
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 5Y8.41%
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 8 / 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.