TWILIO INC - A (TWLO) Fundamental Analysis & Valuation

NYSE:TWLO • US90138F1021

Current stock price

119.99 USD
-6.11 (-4.85%)
At close:
119.99 USD
0 (0%)
After Hours:

This TWLO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. TWLO Profitability Analysis

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 reported 4 times negative net income.
  • In multiple years TWLO reported negative operating cash flow during the last 5 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 2025 0 500M -500M 1B -1B

1.2 Ratios

  • TWLO has a Return On Assets (0.35%) which is comparable to the rest of the industry.
  • Looking at the Return On Equity, with a value of 0.43%, TWLO is in line with its industry, outperforming 53.41% of the companies in the same industry.
  • TWLO has a Return On Invested Capital of 1.17%. This is comparable to the rest of the industry: TWLO outperforms 51.14% of its industry peers.
Industry RankSector Rank
ROA 0.35%
ROE 0.43%
ROIC 1.17%
ROA(3y)-3.17%
ROA(5y)-5.36%
ROE(3y)-3.79%
ROE(5y)-6.38%
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 2025 0 -5 -10 -15 -20 -25

1.3 Margins

  • With a Profit Margin value of 0.67%, TWLO perfoms like the industry average, outperforming 51.14% of the companies in the same industry.
  • TWLO has a Operating Margin (3.35%) which is comparable to the rest of the industry.
  • The Gross Margin of TWLO (48.92%) is better than 72.73% 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 RankSector Rank
OM 3.35%
PM (TTM) 0.67%
GM 48.92%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.06%
GM growth 5Y-1.21%
TWLO Yearly Profit, Operating, Gross MarginsTWLO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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8

2. TWLO Health Analysis

2.1 Basic Checks

  • TWLO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for TWLO remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, TWLO has less 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 2025 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 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 5.59 indicates that TWLO is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 5.59, TWLO belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
  • TWLO has a debt to FCF ratio of 1.05. This is a very positive value and a sign of high solvency as it would only need 1.05 years to pay back of all of its debts.
  • The Debt to FCF ratio of TWLO (1.05) is better than 78.41% 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 Debt to Equity ratio of 0.13. This is in the better half of the industry: TWLO outperforms 68.18% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.05
Altman-Z 5.59
ROIC/WACC0.12
WACC9.4%
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 2025 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • TWLO has a Current Ratio of 4.03. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
  • With an excellent Current ratio value of 4.03, TWLO belongs to the best of the industry, outperforming 82.95% of the companies in the same industry.
  • A Quick Ratio of 4.03 indicates that TWLO has no problem at all paying its short term obligations.
  • TWLO's Quick ratio of 4.03 is amongst the best of the industry. TWLO outperforms 82.95% of its industry peers.
Industry RankSector Rank
Current Ratio 4.03
Quick Ratio 4.03
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 2025 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. TWLO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 33.06% over the past year.
  • The Earnings Per Share has been growing by 84.45% on average over the past years. This is a very strong growth
  • The Revenue has grown by 13.66% in the past year. This is quite good.
  • Measured over the past years, TWLO shows a very strong growth in Revenue. The Revenue has been growing by 23.53% on average per year.
EPS 1Y (TTM)33.06%
EPS 3YN/A
EPS 5Y84.45%
EPS Q2Q%33%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y9.82%
Revenue growth 5Y23.53%
Sales Q2Q%14.32%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.16% on average over the next years. This is quite good.
  • Based on estimates for the next years, TWLO will show a quite strong growth in Revenue. The Revenue will grow by 8.50% on average per year.
EPS Next Y12.44%
EPS Next 2Y15.01%
EPS Next 3Y15.06%
EPS Next 5Y14.16%
Revenue Next Year13.24%
Revenue Next 2Y10.7%
Revenue Next 3Y9.82%
Revenue Next 5Y8.5%

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.
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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2

4. TWLO Valuation Analysis

4.1 Price/Earnings Ratio

  • TWLO is valuated rather expensively with a Price/Earnings ratio of 24.44.
  • Compared to the rest of the industry, the Price/Earnings ratio of TWLO is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 24.88, TWLO is valued at the same level.
  • TWLO is valuated rather expensively with a Price/Forward Earnings ratio of 21.73.
  • The rest of the industry has a similar Price/Forward Earnings ratio as TWLO.
  • When comparing the Price/Forward Earnings ratio of TWLO to the average of the S&P500 Index (22.19), we can say TWLO is valued inline with the index average.
Industry RankSector Rank
PE 24.44
Fwd PE 21.73
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TWLO is on the same level as its industry peers.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as TWLO.
Industry RankSector Rank
P/FCF 19.23
EV/EBITDA 43.39
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TWLO does not grow enough to justify the current Price/Earnings ratio.
  • A more expensive valuation may be justified as TWLO's earnings are expected to grow with 15.06% in the coming years.
PEG (NY)1.97
PEG (5Y)0.29
EPS Next 2Y15.01%
EPS Next 3Y15.06%

More info and screens

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

0

5. TWLO Dividend Analysis

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

TWLO Fundamentals: All Metrics, Ratios and Statistics

TWILIO INC - A

NYSE:TWLO (3/27/2026, 8:04:00 PM)

After market: 119.99 0 (0%)

119.99

-6.11 (-4.85%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-12
Earnings (Next)04-29
Inst Owners93.67%
Inst Owner Change-2.52%
Ins Owners0.13%
Ins Owner Change1.09%
Market Cap18.18B
Revenue(TTM)5.07B
Net Income(TTM)33.83M
Analysts77.78
Price Target145.56 (21.31%)
Short Float %4.29%
Short Ratio2.42
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)9.26%
Min EPS beat(2)5.47%
Max EPS beat(2)13.05%
EPS beat(4)4
Avg EPS beat(4)12.12%
Min EPS beat(4)5.47%
Max EPS beat(4)18.47%
EPS beat(8)7
Avg EPS beat(8)14.26%
EPS beat(12)11
Avg EPS beat(12)34.8%
EPS beat(16)15
Avg EPS beat(16)58.37%
Revenue beat(2)2
Avg Revenue beat(2)1.58%
Min Revenue beat(2)1.48%
Max Revenue beat(2)1.67%
Revenue beat(4)4
Avg Revenue beat(4)1.35%
Min Revenue beat(4)0.9%
Max Revenue beat(4)1.67%
Revenue beat(8)6
Avg Revenue beat(8)0.74%
Revenue beat(12)9
Avg Revenue beat(12)0.91%
Revenue beat(16)11
Avg Revenue beat(16)0.65%
PT rev (1m)-3.37%
PT rev (3m)2.99%
EPS NQ rev (1m)3.59%
EPS NQ rev (3m)3.53%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)4.19%
Revenue NQ rev (3m)3.95%
Revenue NY rev (1m)4.09%
Revenue NY rev (3m)4.11%
Valuation
Industry RankSector Rank
PE 24.44
Fwd PE 21.73
P/S 3.59
P/FCF 19.23
P/OCF 18.12
P/B 2.32
P/tB 7.61
EV/EBITDA 43.39
EPS(TTM)4.91
EY4.09%
EPS(NY)5.52
Fwd EY4.6%
FCF(TTM)6.24
FCFY5.2%
OCF(TTM)6.62
OCFY5.52%
SpS33.44
BVpS51.62
TBVpS15.76
PEG (NY)1.97
PEG (5Y)0.29
Graham Number75.52
Profitability
Industry RankSector Rank
ROA 0.35%
ROE 0.43%
ROCE 1.91%
ROIC 1.17%
ROICexc 1.62%
ROICexgc 10.63%
OM 3.35%
PM (TTM) 0.67%
GM 48.92%
FCFM 18.66%
ROA(3y)-3.17%
ROA(5y)-5.36%
ROE(3y)-3.79%
ROE(5y)-6.38%
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 3Y1.06%
GM growth 5Y-1.21%
F-Score6
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.05
Debt/EBITDA 2.72
Cap/Depr 29.58%
Cap/Sales 1.14%
Interest Coverage 250
Cash Conversion 274.85%
Profit Quality 2794.31%
Current Ratio 4.03
Quick Ratio 4.03
Altman-Z 5.59
F-Score6
WACC9.4%
ROIC/WACC0.12
Cap/Depr(3y)25.38%
Cap/Depr(5y)27.94%
Cap/Sales(3y)1.23%
Cap/Sales(5y)1.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.06%
EPS 3YN/A
EPS 5Y84.45%
EPS Q2Q%33%
EPS Next Y12.44%
EPS Next 2Y15.01%
EPS Next 3Y15.06%
EPS Next 5Y14.16%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y9.82%
Revenue growth 5Y23.53%
Sales Q2Q%14.32%
Revenue Next Year13.24%
Revenue Next 2Y10.7%
Revenue Next 3Y9.82%
Revenue Next 5Y8.5%
EBIT growth 1Y519.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year31.63%
EBIT Next 3Y18.35%
EBIT Next 5Y6.77%
FCF growth 1Y43.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y40.07%
OCF growth 3YN/A
OCF growth 5Y98.38%

TWILIO INC - A / TWLO Fundamental Analysis 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 2 / 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.


Can you provide the financial health for TWLO stock?

The financial health rating of TWILIO INC - A (TWLO) is 8 / 10.