TWILIO INC - A (TWLO) Fundamental Analysis & Valuation
NYSE:TWLO • US90138F1021
126.66 USD
-1.37 (-1.07%)
At close: Mar 9, 2026
126.66 USD
0 (0%)
After Hours: 3/9/2026, 5:05:00 PM
This TWLO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, TWLO scores 5 out of 10 in our fundamental rating. TWLO was compared to 87 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 valued quite expensive, but it does show an excellent growth.
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.
- TWLO had negative earnings in 4 of the past 5 years.
- In multiple years TWLO reported negative operating cash flow during the last 5 years.
1.2 Ratios
- TWLO has a Return On Assets of 0.35%. This is comparable to the rest of the industry: TWLO outperforms 50.57% of its industry peers.
- TWLO has a Return On Equity (0.43%) which is comparable to the rest of the industry.
- TWLO's Return On Invested Capital of 1.17% is in line compared to the rest of the industry. TWLO outperforms 50.57% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
- TWLO has a Profit Margin of 0.67%. This is comparable to the rest of the industry: TWLO outperforms 50.57% of its industry peers.
- TWLO has a Operating Margin (3.35%) which is comparable to the rest of the industry.
- Looking at the Gross Margin, with a value of 48.92%, TWLO is in the better half of the industry, outperforming 72.41% 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 | 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%
2. TWLO Health Analysis
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 about the same amount of shares outstanding.
- Compared to 5 years ago, TWLO has less shares outstanding
- The debt/assets ratio for TWLO is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.68 indicates that TWLO is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.68, TWLO belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
- The Debt to FCF ratio of TWLO is 1.05, which is an excellent value as it means it would take TWLO, only 1.05 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.05, TWLO is in the better half of the industry, outperforming 78.16% 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 67.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 5.68 |
ROIC/WACC0.14
WACC8.59%
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 83.91% of the companies in the same industry.
- TWLO has a Quick Ratio of 4.03. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 4.03, TWLO belongs to the top of the industry, outperforming 83.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.03 | ||
| Quick Ratio | 4.03 |
3. TWLO Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 33.06% over the past year.
- Measured over the past years, TWLO shows a very strong growth in Earnings Per Share. The EPS has been growing by 84.45% on average per year.
- 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
- TWLO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.16% yearly.
- 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 Year13.04%
Revenue Next 2Y10.69%
Revenue Next 3Y9.81%
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.
- 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.
4. TWLO Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 25.80, which means the current valuation is very expensive for TWLO.
- The rest of the industry has a similar Price/Earnings ratio as TWLO.
- When comparing the Price/Earnings ratio of TWLO to the average of the S&P500 Index (26.29), we can say TWLO is valued inline with the index average.
- TWLO is valuated rather expensively with a Price/Forward Earnings ratio of 22.94.
- TWLO's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.60, TWLO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.8 | ||
| Fwd PE | 22.94 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.3 | ||
| EV/EBITDA | 44.19 |
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.
- TWLO's earnings are expected to grow with 15.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.07
PEG (5Y)0.31
EPS Next 2Y15.01%
EPS Next 3Y15.06%
5. TWLO Dividend Analysis
5.1 Amount
- No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TWLO Fundamentals: All Metrics, Ratios and Statistics
126.66
-1.37 (-1.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners93.67%
Inst Owner Change-2.52%
Ins Owners0.13%
Ins Owner Change1.12%
Market Cap19.19B
Revenue(TTM)5.07B
Net Income(TTM)33.83M
Analysts77.78
Price Target145.56 (14.92%)
Short Float %4.08%
Short Ratio2.26
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)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)3.96%
Revenue NQ rev (3m)3.72%
Revenue NY rev (1m)3.91%
Revenue NY rev (3m)3.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.8 | ||
| Fwd PE | 22.94 | ||
| P/S | 3.79 | ||
| P/FCF | 20.3 | ||
| P/OCF | 19.13 | ||
| P/B | 2.45 | ||
| P/tB | 8.04 | ||
| EV/EBITDA | 44.19 |
EPS(TTM)4.91
EY3.88%
EPS(NY)5.52
Fwd EY4.36%
FCF(TTM)6.24
FCFY4.93%
OCF(TTM)6.62
OCFY5.23%
SpS33.44
BVpS51.62
TBVpS15.76
PEG (NY)2.07
PEG (5Y)0.31
Graham Number75.52
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.68 |
F-Score6
WACC8.59%
ROIC/WACC0.14
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 Year13.04%
Revenue Next 2Y10.69%
Revenue Next 3Y9.81%
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 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.