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%)
We assign a fundamental rating of 5 out of 10 to TWLO. TWLO was compared to 88 industry peers in the IT Services industry. While TWLO has a great health rating, there are worries on its profitability. TWLO is growing strongly while it is still valued neutral. This is a good 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.
- The reported operating cash flow has been mixed in the past 5 years: TWLO reported negative operating cash flow in multiple years.
1.2 Ratios
- TWLO's Return On Assets of 0.69% is in line compared to the rest of the industry. TWLO outperforms 48.86% of its industry peers.
- TWLO has a Return On Equity (0.85%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 0.97%, TWLO is in line with its industry, outperforming 48.86% 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 48.86% of its industry peers.
- TWLO has a Operating Margin (2.24%) which is comparable to the rest of the industry.
- With a decent Gross Margin value of 49.35%, TWLO is doing good in the industry, outperforming 70.45% 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
- TWLO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, TWLO has less shares outstanding
- Compared to 5 years ago, TWLO has more shares outstanding
- 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 Altman-Z score of 5.67. This is amongst the best in the industry. TWLO outperforms 80.68% of its industry peers.
- The Debt to FCF ratio of TWLO is 1.27, which is an excellent value as it means it would take TWLO, only 1.27 years of fcf income to pay off 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 75.00% 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.
- With a decent Debt to Equity ratio value of 0.13, TWLO is doing good in the industry, outperforming 67.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 5.67 |
ROIC/WACC0.11
WACC8.98%
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 87.50% of its industry peers.
- A Quick Ratio of 4.68 indicates that TWLO has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 4.68, TWLO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| 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.
- 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.
- 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 2Y10.85%
Revenue Next 3Y9.81%
Revenue Next 5Y8.41%
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
- The Price/Earnings ratio is 26.00, which means the current valuation is very expensive for TWLO.
- The rest of the industry has a similar Price/Earnings ratio as TWLO.
- The average S&P500 Price/Earnings ratio is at 27.38. TWLO is around the same levels.
- Based on the Price/Forward Earnings ratio of 21.44, the valuation of TWLO can be described as rather expensive.
- 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 (24.29), we can say TWLO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26 | ||
| Fwd PE | 21.44 |
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.
- 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
- 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)0.8
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
WACC8.98%
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.