TWILIO INC - A (TWLO) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:TWLO • US90138F1021

109.05 USD
-2.8 (-2.5%)
At close: Feb 5, 2026
106.5 USD
-2.55 (-2.34%)
After Hours: 2/5/2026, 8:04:00 PM
Fundamental Rating

5

TWLO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

3

1. Profitability

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 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.
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 0 500M -500M -1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 0.69%, TWLO is in line with its industry, outperforming 48.86% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 0.85%, TWLO is in line with its industry, outperforming 52.27% of the companies in the same industry.
  • The Return On Invested Capital of TWLO (0.97%) is comparable to the rest of the industry.
Industry RankSector 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
TWLO Yearly ROA, ROE, ROICTWLO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 -5 -10 -15 -20 -25

1.3 Margins

  • TWLO has a Profit Margin of 1.37%. This is comparable to the rest of the industry: TWLO outperforms 48.86% of its industry peers.
  • 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.
  • With a decent Gross Margin value of 49.35%, TWLO is doing good in 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 RankSector 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%
TWLO Yearly Profit, Operating, Gross MarginsTWLO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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8

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TWLO is destroying value.
  • TWLO has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, TWLO has more shares outstanding
  • 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 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 2B 4B 6B 8B 10B

2.2 Solvency

  • TWLO has an Altman-Z score of 5.31. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
  • TWLO has a Altman-Z score of 5.31. This is amongst the best in the industry. TWLO outperforms 81.82% 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.
  • Looking at the Debt to FCF ratio, with a value of 1.27, TWLO is in the better half of the industry, outperforming 76.14% of the companies in the same industry.
  • A Debt/Equity ratio of 0.13 indicates that TWLO is not too dependend on debt financing.
  • TWLO's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. TWLO outperforms 68.18% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.27
Altman-Z 5.31
ROIC/WACC0.11
WACC9.17%
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 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 4.68 indicates that TWLO has no problem at all paying its short term obligations.
  • With an excellent Current ratio value of 4.68, TWLO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
  • 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 Quick ratio of 4.68. This is amongst the best in the industry. TWLO outperforms 87.50% of its industry peers.
Industry RankSector Rank
Current Ratio 4.68
Quick Ratio 4.68
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 1B 2B 3B 4B 5B

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

8

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
  • TWLO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.84%.
  • 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

  • TWLO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.65% yearly.
  • TWLO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.41% yearly.
EPS Next Y32.57%
EPS Next 2Y22.6%
EPS Next 3Y20.02%
EPS Next 5Y16.65%
Revenue Next Year13.02%
Revenue Next 2Y10.88%
Revenue Next 3Y9.84%
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.
  • 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.
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

4

4. Valuation

4.1 Price/Earnings Ratio

  • TWLO is valuated rather expensively with a Price/Earnings ratio of 23.81.
  • TWLO's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.67. TWLO is around the same levels.
  • The Price/Forward Earnings ratio is 19.66, which indicates a rather expensive current valuation of TWLO.
  • TWLO's Price/Forward Earnings is on the same level as the industry average.
  • TWLO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
Industry RankSector Rank
PE 23.81
Fwd PE 19.66
TWLO Price Earnings VS Forward Price EarningsTWLO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 21.12
EV/EBITDA 44.8
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

  • 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 20.02% in the coming years.
PEG (NY)0.73
PEG (5Y)0.27
EPS Next 2Y22.6%
EPS Next 3Y20.02%

More info and screens

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

0

5. Dividend

5.1 Amount

  • No dividends for TWLO!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

TWILIO INC - A

NYSE:TWLO (2/5/2026, 8:04:00 PM)

After market: 106.5 -2.55 (-2.34%)

109.05

-2.8 (-2.5%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-30
Earnings (Next)02-12
Inst Owners97.77%
Inst Owner Change-4.03%
Ins Owners0.11%
Ins Owner Change-3.33%
Market Cap16.53B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.92
Price Target147.34 (35.11%)
Short Float %4.09%
Short Ratio2.73
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)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)4.24%
PT rev (3m)11.32%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)8.81%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)5.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.63%
Valuation
Industry RankSector Rank
PE 23.81
Fwd PE 19.66
P/S 3.38
P/FCF 21.12
P/OCF 19.68
P/B 2.09
P/tB 6.63
EV/EBITDA 44.8
EPS(TTM)4.58
EY4.2%
EPS(NY)5.55
Fwd EY5.09%
FCF(TTM)5.16
FCFY4.73%
OCF(TTM)5.54
OCFY5.08%
SpS32.29
BVpS52.08
TBVpS16.45
PEG (NY)0.73
PEG (5Y)0.27
Graham Number73.26
Profitability
Industry RankSector 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 RankSector 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 5.31
F-Score6
WACC9.17%
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 Y32.57%
EPS Next 2Y22.6%
EPS Next 3Y20.02%
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 2Y10.88%
Revenue Next 3Y9.84%
Revenue Next 5Y8.41%
EBIT growth 1Y205.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year44.43%
EBIT Next 3Y24.25%
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 4 / 10 to TWILIO INC - A (TWLO). This can be considered as Fairly Valued.


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.