TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - NYSE:TWLO - US90138F1021 - Common Stock
120.57 USD
+1.69 (+1.42%)
120.45 USD
-0.12 (-0.1%)
TWLO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. While TWLO has a great health rating, there are worries on its profitability. TWLO is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year TWLO was profitable.
TWLO had a positive operating cash flow in the past year.
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 48.24% of the companies in the same industry.
TWLO has a Return On Equity (0.85%) which is comparable to the rest of the 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
TWLO's Profit Margin of 1.37% is in line compared to the rest of the industry. TWLO outperforms 48.24% of its industry peers.
TWLO has a Operating Margin (2.24%) which is comparable to the rest of the industry.
Looking at the Gross Margin, with a value of 49.35%, TWLO is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
TWLO's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, TWLO has less shares outstanding
The number of shares outstanding for TWLO has been increased compared to 5 years ago.
The debt/assets ratio for TWLO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.73 indicates that TWLO is not in any danger for bankruptcy at the moment.
The Altman-Z score of TWLO (5.73) is better than 83.53% 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 74.12% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that TWLO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.13, TWLO is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 5.73 |
ROIC/WACC0.11
WACC8.59%
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 Current ratio of 4.68. This is amongst the best in the industry. TWLO outperforms 88.24% of its industry peers.
A Quick Ratio of 4.68 indicates that TWLO has no problem at all paying its short term obligations.
TWLO has a better Quick ratio (4.68) than 88.24% 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.
Measured over the past years, TWLO shows a very strong growth in Earnings Per Share. The EPS has been growing by 89.75% on average per year.
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 8.23% 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 5Y8.23%
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
With a Price/Earnings ratio of 26.33, TWLO can be considered very expensive at the moment.
TWLO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.45, TWLO is valued at the same level.
TWLO is valuated rather expensively with a Price/Forward Earnings ratio of 21.80.
The rest of the industry has a similar Price/Forward Earnings ratio as TWLO.
TWLO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.33 | ||
| Fwd PE | 21.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TWLO.
TWLO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.63 | ||
| EV/EBITDA | 48.97 |
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 20.40% in the coming years.
PEG (NY)0.83
PEG (5Y)0.29
EPS Next 2Y22.42%
EPS Next 3Y20.4%
5. Dividend
5.1 Amount
No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
120.57
+1.69 (+1.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners89.15%
Inst Owner Change7.14%
Ins Owners0.11%
Ins Owner Change-5.72%
Market Cap18.50B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.33
Price Target132.35 (9.77%)
Short Float %3.6%
Short Ratio2.04
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)0%
PT rev (3m)-0.54%
EPS NQ rev (1m)8.42%
EPS NQ rev (3m)0.07%
EPS NY rev (1m)4.73%
EPS NY rev (3m)4.35%
Revenue NQ rev (1m)2.6%
Revenue NQ rev (3m)4.27%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.33 | ||
| Fwd PE | 21.8 | ||
| P/S | 3.78 | ||
| P/FCF | 23.63 | ||
| P/OCF | 22.02 | ||
| P/B | 2.34 | ||
| P/tB | 7.42 | ||
| EV/EBITDA | 48.97 |
EPS(TTM)4.58
EY3.8%
EPS(NY)5.53
Fwd EY4.59%
FCF(TTM)5.1
FCFY4.23%
OCF(TTM)5.48
OCFY4.54%
SpS31.91
BVpS51.46
TBVpS16.26
PEG (NY)0.83
PEG (5Y)0.29
Graham Number72.82
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 | 5.73 |
F-Score6
WACC8.59%
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 5Y8.23%
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 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.
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.