TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWLO - US90138F1021 - Common Stock
119.07 USD
-0.71 (-0.59%)
120 USD
+0.93 (+0.78%)
Overall TWLO gets a fundamental rating of 5 out of 10. We evaluated TWLO against 88 industry peers in the IT Services industry. TWLO has a great financial health rating, but its profitability evaluates not so good. TWLO is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
- 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
- With a Return On Assets value of 0.69%, TWLO perfoms like the industry average, outperforming 48.86% of the companies in the same industry.
- TWLO's Return On Equity of 0.85% is in line compared to the rest of the industry. TWLO outperforms 52.27% of its industry peers.
- The Return On Invested Capital of TWLO (0.97%) is comparable to the rest of the 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 48.86% of its industry peers.
- TWLO has a Operating Margin (2.24%) which is in line with its industry peers.
- The Gross Margin of TWLO (49.35%) is better than 70.45% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TWLO is destroying value.
- TWLO has less shares outstanding than it did 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 5.67 indicates that TWLO is not in any danger for bankruptcy at the moment.
- TWLO has a better Altman-Z score (5.67) than 81.82% 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 76.14% 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'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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 5.67 |
ROIC/WACC0.11
WACC9.03%
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.
- 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.
- The Quick ratio of TWLO (4.68) is better than 87.50% 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
- The Revenue has grown by 12.84% in the past year. This is quite good.
- 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
- 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.
- 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 Y32.58%
EPS Next 2Y22.69%
EPS Next 3Y20.23%
EPS Next 5Y16.65%
Revenue Next Year13.02%
Revenue Next 2Y10.85%
Revenue Next 3Y9.81%
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
- Based on the Price/Earnings ratio of 26.00, the valuation of TWLO can be described as expensive.
- TWLO's Price/Earnings ratio is in line with the industry average.
- TWLO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- The Price/Forward Earnings ratio is 21.44, which indicates a rather expensive current valuation of TWLO.
- The rest of the industry has a similar Price/Forward Earnings ratio as TWLO.
- TWLO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26 | ||
| Fwd PE | 21.44 |
4.2 Price Multiples
- TWLO's Enterprise Value to EBITDA ratio is in line with the industry average.
- TWLO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TWLO is cheaper than 60.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.06 | ||
| EV/EBITDA | 48.36 |
4.3 Compensation for Growth
- TWLO's 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)0.8
PEG (5Y)0.29
EPS Next 2Y22.69%
EPS Next 3Y20.23%
5. Dividend
5.1 Amount
- No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
119.07
-0.71 (-0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners97.77%
Inst Owner Change0.09%
Ins Owners0.11%
Ins Owner Change-3.33%
Market Cap18.05B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.92
Price Target147.34 (23.74%)
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)4.24%
PT rev (3m)11.32%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)8.78%
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 | 26 | ||
| Fwd PE | 21.44 | ||
| P/S | 3.69 | ||
| P/FCF | 23.06 | ||
| P/OCF | 21.49 | ||
| P/B | 2.29 | ||
| P/tB | 7.24 | ||
| EV/EBITDA | 48.36 |
EPS(TTM)4.58
EY3.85%
EPS(NY)5.55
Fwd EY4.66%
FCF(TTM)5.16
FCFY4.34%
OCF(TTM)5.54
OCFY4.65%
SpS32.29
BVpS52.08
TBVpS16.45
PEG (NY)0.8
PEG (5Y)0.29
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 | 5.67 |
F-Score6
WACC9.03%
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 2Y10.85%
Revenue Next 3Y9.81%
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 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.