TWILIO INC - A (TWLO) Stock Fundamental Analysis
NYSE:TWLO - New York Stock Exchange, Inc. - US90138F1021 - Common Stock - Currency: USD
TWLO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the IT Services industry. TWLO has a great financial health rating, but its profitability evaluates not so good. TWLO shows excellent growth, but is valued quite expensive already.
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.
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 has a Return On Assets of -1.11%. This is comparable to the rest of the industry: TWLO outperforms 42.68% of its industry peers.
With a Return On Equity value of -1.38%, TWLO perfoms like the industry average, outperforming 47.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.11% | ||
| ROE | -1.38% | ||
| ROIC | N/A |
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 Gross Margin of 51.10%. This is in the better half of the industry: TWLO outperforms 73.17% of its industry peers.
In the last couple of years the Gross Margin of TWLO has remained more or less at the same level.
TWLO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 51.1% |
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
TWLO has less shares outstanding than it did 1 year ago.
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
TWLO has an Altman-Z score of 4.24. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TWLO (4.24) is better than 67.07% of its industry peers.
The Debt to FCF ratio of TWLO is 1.51, which is an excellent value as it means it would take TWLO, only 1.51 years of fcf income to pay off all of its debts.
TWLO has a better Debt to FCF ratio (1.51) than 74.39% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that TWLO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.12, TWLO is doing good in the industry, outperforming 69.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 4.24 |
ROIC/WACCN/A
WACC9.11%
2.3 Liquidity
TWLO has a Current Ratio of 4.20. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
TWLO's Current ratio of 4.20 is amongst the best of the industry. TWLO outperforms 90.24% of its industry peers.
TWLO has a Quick Ratio of 4.20. 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 4.20, TWLO belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.2 |
3. Growth
3.1 Past
TWLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.61%, which is quite impressive.
The Earnings Per Share has been growing by 89.75% on average over the past years. This is a very strong growth
Looking at the last year, TWLO shows a small growth in Revenue. The Revenue has grown by 7.32% 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)50.61%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%16.28%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%11.05%
3.2 Future
Based on estimates for the next years, TWLO will show a very strong growth in Earnings Per Share. The EPS will grow by 21.78% on average per year.
Based on estimates for the next years, TWLO will show a quite strong growth in Revenue. The Revenue will grow by 8.62% on average per year.
EPS Next Y20.33%
EPS Next 2Y19.08%
EPS Next 3Y19.03%
EPS Next 5Y21.78%
Revenue Next Year8.25%
Revenue Next 2Y8.19%
Revenue Next 3Y8.31%
Revenue Next 5Y8.62%
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
A Price/Earnings ratio of 25.76 indicates a quite expensive valuation of TWLO.
Compared to the rest of the industry, the Price/Earnings ratio of TWLO is on the same level as its industry peers.
TWLO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.41 indicates a rather expensive valuation of TWLO.
TWLO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TWLO is cheaper than 60.98% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TWLO to the average of the S&P500 Index (21.38), we can say TWLO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 21.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TWLO is valued a bit more expensive than the industry average as 65.85% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TWLO indicates a somewhat cheap valuation: TWLO is cheaper than 62.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.07 | ||
| EV/EBITDA | 67.37 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TWLO's earnings are expected to grow with 19.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)0.29
EPS Next 2Y19.08%
EPS Next 3Y19.03%
5. Dividend
5.1 Amount
No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
95.07
+1.54 (+1.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners80.73%
Inst Owner Change0.23%
Ins Owners0.11%
Ins Owner Change0.83%
Market Cap14.51B
Analysts76.11
Price Target135.57 (42.6%)
Short Float %2.1%
Short Ratio1.02
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)1
Avg EPS beat(2)5.84%
Min EPS beat(2)-5.36%
Max EPS beat(2)17.03%
EPS beat(4)3
Avg EPS beat(4)16.39%
Min EPS beat(4)-5.36%
Max EPS beat(4)31.71%
EPS beat(8)7
Avg EPS beat(8)46.15%
EPS beat(12)11
Avg EPS beat(12)73.78%
EPS beat(16)15
Avg EPS beat(16)73.35%
Revenue beat(2)1
Avg Revenue beat(2)0.33%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)1.67%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)1.67%
Revenue beat(8)5
Avg Revenue beat(8)0.69%
Revenue beat(12)7
Avg Revenue beat(12)0.42%
Revenue beat(16)11
Avg Revenue beat(16)2.34%
PT rev (1m)-6.37%
PT rev (3m)48.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 21.41 | ||
| P/S | 3.25 | ||
| P/FCF | 22.07 | ||
| P/OCF | 20.26 | ||
| P/B | 1.82 | ||
| P/tB | 5.87 | ||
| EV/EBITDA | 67.37 |
EPS(TTM)3.69
EY3.88%
EPS(NY)4.44
Fwd EY4.67%
FCF(TTM)4.31
FCFY4.53%
OCF(TTM)4.69
OCFY4.94%
SpS29.21
BVpS52.11
TBVpS16.19
PEG (NY)1.27
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.11% | ||
| ROE | -1.38% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 51.1% | ||
| FCFM | 14.75% |
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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 5.98 | ||
| Cap/Depr | 28.54% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 432.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.2 | ||
| Quick Ratio | 4.2 | ||
| Altman-Z | 4.24 |
F-Score6
WACC9.11%
ROIC/WACCN/A
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)50.61%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%16.28%
EPS Next Y20.33%
EPS Next 2Y19.08%
EPS Next 3Y19.03%
EPS Next 5Y21.78%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%11.05%
Revenue Next Year8.25%
Revenue Next 2Y8.19%
Revenue Next 3Y8.31%
Revenue Next 5Y8.62%
EBIT growth 1Y89.64%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.08%
EBIT Next 3Y23.44%
EBIT Next 5YN/A
FCF growth 1Y80.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y72.69%
OCF growth 3YN/A
OCF growth 5Y119.52%