TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - NYSE:TWLO - US90138F1021 - Common Stock
108.38 USD
+4.85 (+4.68%)
108.55 USD
+0.17 (+0.16%)
Overall TWLO gets a fundamental rating of 5 out of 10. We evaluated TWLO against 86 industry peers in the IT Services industry. TWLO has a great financial health rating, but its profitability evaluates not so good. TWLO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
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 each of the past 5 years.
In multiple years TWLO reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of TWLO (0.21%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 0.25%, TWLO is in line with its industry, outperforming 48.84% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.63%, TWLO is in line with its industry, outperforming 43.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 0.25% | ||
| ROIC | 0.63% |
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 (0.43%) which is comparable to the rest of the industry.
TWLO's Operating Margin of 1.53% is in line compared to the rest of the industry. TWLO outperforms 43.02% of its industry peers.
TWLO has a better Gross Margin (49.96%) than 69.77% of its industry peers.
TWLO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.53% | ||
| PM (TTM) | 0.43% | ||
| GM | 49.96% |
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.
Compared to 1 year ago, TWLO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.02 indicates that TWLO is not in any danger for bankruptcy at the moment.
TWLO's Altman-Z score of 5.02 is fine compared to the rest of the industry. TWLO outperforms 72.09% of its industry peers.
The Debt to FCF ratio of TWLO is 1.37, which is an excellent value as it means it would take TWLO, only 1.37 years of fcf income to pay off all of its debts.
TWLO has a Debt to FCF ratio of 1.37. This is in the better half of the industry: TWLO outperforms 76.74% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that TWLO is not too dependend on debt financing.
TWLO's Debt to Equity ratio of 0.12 is fine compared to the rest of the industry. TWLO outperforms 68.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 5.02 |
ROIC/WACC0.07
WACC9.07%
2.3 Liquidity
TWLO has a Current Ratio of 4.90. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
TWLO has a Current ratio of 4.90. This is amongst the best in the industry. TWLO outperforms 87.21% of its industry peers.
A Quick Ratio of 4.90 indicates that TWLO has no problem at all paying its short term obligations.
The Quick ratio of TWLO (4.90) is better than 87.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.9 | ||
| Quick Ratio | 4.9 |
3. Growth
3.1 Past
TWLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.87%, which is quite impressive.
TWLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 89.75% yearly.
Looking at the last year, TWLO shows a quite strong growth in Revenue. The Revenue has grown by 11.56% 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)39.87%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%36.78%
Revenue 1Y (TTM)11.56%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%13.48%
3.2 Future
The Earnings Per Share is expected to grow by 15.61% on average over the next years. This is quite good.
Based on estimates for the next years, TWLO will show a small growth in Revenue. The Revenue will grow by 7.84% on average per year.
EPS Next Y26.15%
EPS Next 2Y19.96%
EPS Next 3Y19.11%
EPS Next 5Y15.61%
Revenue Next Year11.23%
Revenue Next 2Y9.68%
Revenue Next 3Y9.17%
Revenue Next 5Y7.84%
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
TWLO is valuated rather expensively with a Price/Earnings ratio of 24.91.
Compared to the rest of the industry, the Price/Earnings ratio of TWLO is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TWLO to the average of the S&P500 Index (27.41), we can say TWLO is valued inline with the index average.
A Price/Forward Earnings ratio of 20.41 indicates a rather expensive valuation of TWLO.
Based on the Price/Forward Earnings ratio, TWLO is valued a bit cheaper than 61.63% of the companies in the same industry.
TWLO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.91 | ||
| Fwd PE | 20.41 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TWLO indicates a somewhat cheap valuation: TWLO is cheaper than 62.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.96 | ||
| EV/EBITDA | 46.82 |
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 19.11% in the coming years.
PEG (NY)0.95
PEG (5Y)0.28
EPS Next 2Y19.96%
EPS Next 3Y19.11%
5. Dividend
5.1 Amount
TWLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
108.38
+4.85 (+4.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners85.26%
Inst Owner Change9.44%
Ins Owners0.11%
Ins Owner Change-2.73%
Market Cap16.63B
Analysts78.29
Price Target132.35 (22.12%)
Short Float %6.53%
Short Ratio2.46
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)14.98%
Min EPS beat(2)11.49%
Max EPS beat(2)18.47%
EPS beat(4)3
Avg EPS beat(4)10.41%
Min EPS beat(4)-5.36%
Max EPS beat(4)18.47%
EPS beat(8)7
Avg EPS beat(8)25.19%
EPS beat(12)11
Avg EPS beat(12)64.12%
EPS beat(16)15
Avg EPS beat(16)64.45%
Revenue beat(2)2
Avg Revenue beat(2)1.13%
Min Revenue beat(2)0.9%
Max Revenue beat(2)1.36%
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)0.79%
Revenue beat(12)8
Avg Revenue beat(12)0.61%
Revenue beat(16)11
Avg Revenue beat(16)1.35%
PT rev (1m)-0.54%
PT rev (3m)3.09%
EPS NQ rev (1m)1.15%
EPS NQ rev (3m)-4.77%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.48%
Revenue NY rev (1m)2.09%
Revenue NY rev (3m)2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.91 | ||
| Fwd PE | 20.41 | ||
| P/S | 3.52 | ||
| P/FCF | 22.96 | ||
| P/OCF | 21.29 | ||
| P/B | 2.07 | ||
| P/tB | 6.36 | ||
| EV/EBITDA | 46.82 |
EPS(TTM)4.35
EY4.01%
EPS(NY)5.31
Fwd EY4.9%
FCF(TTM)4.72
FCFY4.36%
OCF(TTM)5.09
OCFY4.7%
SpS30.82
BVpS52.43
TBVpS17.05
PEG (NY)0.95
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 0.25% | ||
| ROCE | 0.79% | ||
| ROIC | 0.63% | ||
| ROICexc | 0.87% | ||
| ROICexgc | 4.95% | ||
| OM | 1.53% | ||
| PM (TTM) | 0.43% | ||
| GM | 49.96% | ||
| FCFM | 15.32% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 28.26% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 286.52% | ||
| Profit Quality | 3578.28% | ||
| Current Ratio | 4.9 | ||
| Quick Ratio | 4.9 | ||
| Altman-Z | 5.02 |
F-Score6
WACC9.07%
ROIC/WACC0.07
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)39.87%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%36.78%
EPS Next Y26.15%
EPS Next 2Y19.96%
EPS Next 3Y19.11%
EPS Next 5Y15.61%
Revenue 1Y (TTM)11.56%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%13.48%
Revenue Next Year11.23%
Revenue Next 2Y9.68%
Revenue Next 3Y9.17%
Revenue Next 5Y7.84%
EBIT growth 1Y135.34%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.77%
EBIT Next 3Y22.84%
EBIT Next 5YN/A
FCF growth 1Y367.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y498.83%
OCF growth 3YN/A
OCF growth 5Y119.52%