TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWLO - US90138F1021 - Common Stock
135.39 USD
+5.74 (+4.43%)
Taking everything into account, TWLO scores 5 out of 10 in our fundamental rating. TWLO was compared to 85 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.
In the past year TWLO had a positive cash flow from operations.
In the past 5 years TWLO always reported negative net income.
In multiple years TWLO reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of TWLO (0.69%) is comparable to the rest of the industry.
TWLO has a Return On Equity (0.85%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 0.97%, TWLO is in line with its industry, outperforming 47.06% of the companies in the same industry.
| 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
TWLO has a Profit Margin of 1.37%. This is comparable to the rest of the industry: TWLO outperforms 47.06% of its industry peers.
With a Operating Margin value of 2.24%, TWLO perfoms like the industry average, outperforming 44.71% of the companies in the same industry.
TWLO's Gross Margin of 49.35% is fine compared to the rest of the industry. TWLO outperforms 69.41% 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 | 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.
TWLO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.20 indicates that TWLO is not in any danger for bankruptcy at the moment.
TWLO has a Altman-Z score of 6.20. This is amongst the best in the industry. TWLO outperforms 82.35% of its industry peers.
TWLO has a debt to FCF ratio of 1.27. This is a very positive value and a sign of high solvency as it would only need 1.27 years to pay back of 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 75.29% of the companies in the same industry.
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 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.2 |
ROIC/WACC0.11
WACC8.74%
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 89.41% of its industry peers.
A Quick Ratio of 4.68 indicates that TWLO has no problem at all paying its short term obligations.
The Quick ratio of TWLO (4.68) is better than 89.41% 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
TWLO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.84%.
The Revenue has been growing by 31.48% on average over the past years. This is a very strong growth!
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.
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.
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
A Price/Earnings ratio of 29.56 indicates a quite expensive valuation of TWLO.
Compared to the rest of the industry, the Price/Earnings ratio of TWLO is on the same level as its industry peers.
TWLO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.29.
TWLO is valuated rather expensively with a Price/Forward Earnings ratio of 24.37.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TWLO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.51. TWLO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.56 | ||
| Fwd PE | 24.37 |
4.2 Price Multiples
TWLO's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TWLO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.22 | ||
| EV/EBITDA | 53.58 |
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 20.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)0.33
EPS Next 2Y22.69%
EPS Next 3Y20.23%
5. Dividend
5.1 Amount
TWLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TWLO (12/10/2025, 3:29:02 PM)
135.39
+5.74 (+4.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.53%
Inst Owner Change8.32%
Ins Owners0.1%
Ins Owner Change-3.61%
Market Cap20.53B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.33
Price Target141.34 (4.39%)
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)6.79%
PT rev (3m)6.8%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)9.16%
EPS NY rev (1m)0.6%
EPS NY rev (3m)5.1%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.56 | ||
| Fwd PE | 24.37 | ||
| P/S | 4.19 | ||
| P/FCF | 26.22 | ||
| P/OCF | 24.43 | ||
| P/B | 2.6 | ||
| P/tB | 8.23 | ||
| EV/EBITDA | 53.58 |
EPS(TTM)4.58
EY3.38%
EPS(NY)5.55
Fwd EY4.1%
FCF(TTM)5.16
FCFY3.81%
OCF(TTM)5.54
OCFY4.09%
SpS32.29
BVpS52.08
TBVpS16.45
PEG (NY)0.91
PEG (5Y)0.33
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 | 6.2 |
F-Score6
WACC8.74%
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.
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 32.58% in the next year.