TWILIO INC - A (TWLO) Stock Fundamental Analysis

NYSE:TWLO • US90138F1021

108.5 USD
-4.64 (-4.1%)
At close: Feb 23, 2026
108 USD
-0.5 (-0.46%)
After Hours: 2/23/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall TWLO gets a fundamental rating of 5 out of 10. We evaluated TWLO against 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 shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • TWLO had positive earnings in the past year.
  • TWLO had a positive operating cash flow in the past year.
  • In the past 5 years TWLO reported 4 times 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.
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

  • The Return On Assets of TWLO (0.35%) is comparable to the rest of the industry.
  • TWLO has a Return On Equity (0.43%) which is comparable to the rest of the industry.
  • TWLO has a Return On Invested Capital (1.02%) which is in line with its industry peers.
Industry RankSector Rank
ROA 0.35%
ROE 0.43%
ROIC 1.02%
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

  • TWLO has a Profit Margin (0.67%) which is comparable to the rest of the industry.
  • The Operating Margin of TWLO (2.92%) is comparable to the rest of the industry.
  • The Gross Margin of TWLO (48.92%) is better than 73.56% 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 2.92%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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.
  • The number of shares outstanding for TWLO has been reduced compared to 1 year ago.
  • The number of shares outstanding for TWLO has been reduced compared to 5 years ago.
  • TWLO has a worse debt/assets ratio than last year.
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

  • TWLO has an Altman-Z score of 4.77. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
  • TWLO has a better Altman-Z score (4.77) than 80.46% of its industry peers.
  • 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.
  • 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.
  • TWLO has a better Debt to Equity ratio (0.13) than 67.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.05
Altman-Z 4.77
ROIC/WACC0.11
WACC9.23%
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.
  • TWLO has a Current ratio of 4.03. This is amongst the best in the industry. TWLO outperforms 85.06% of its industry peers.
  • A Quick Ratio of 4.03 indicates that TWLO has no problem at all paying its short term obligations.
  • The Quick ratio of TWLO (4.03) is better than 85.06% 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

7

3. Growth

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.
  • Looking at the last year, TWLO shows a quite strong growth in Revenue. The Revenue has grown by 13.66% in the last year.
  • 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 11.50% on average over the next years. This is quite good.
  • TWLO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.08% yearly.
EPS Next Y12.93%
EPS Next 2Y13.97%
EPS Next 3Y13.83%
EPS Next 5Y11.5%
Revenue Next Year12.17%
Revenue Next 2Y10.08%
Revenue Next 3Y9.9%
Revenue Next 5Y7.08%

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.
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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • TWLO is valuated rather expensively with a Price/Earnings ratio of 22.10.
  • Compared to the rest of the industry, the Price/Earnings ratio of TWLO is on the same level as its industry peers.
  • TWLO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.64.
  • A Price/Forward Earnings ratio of 19.57 indicates a rather expensive valuation of TWLO.
  • The rest of the industry has a similar Price/Forward Earnings ratio as TWLO.
  • TWLO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.75, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 22.1
Fwd PE 19.57
TWLO Price Earnings VS Forward Price EarningsTWLO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 17.4
EV/EBITDA 38.4
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

  • TWLO's 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 13.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.71
PEG (5Y)0.26
EPS Next 2Y13.97%
EPS Next 3Y13.83%

More info and screens

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

0

5. Dividend

5.1 Amount

  • TWLO does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

TWILIO INC - A

NYSE:TWLO (2/23/2026, 8:04:00 PM)

After market: 108 -0.5 (-0.46%)

108.5

-4.64 (-4.1%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-12
Earnings (Next)04-29
Inst Owners97.77%
Inst Owner Change-2.5%
Ins Owners0.11%
Ins Owner Change-3.3%
Market Cap16.45B
Revenue(TTM)5.07B
Net Income(TTM)33.83M
Analysts77.78
Price Target150.65 (38.85%)
Short Float %4.22%
Short Ratio2.38
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)2.25%
PT rev (3m)7.53%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)3.5%
Revenue NQ rev (3m)3.19%
Revenue NY rev (1m)3.11%
Revenue NY rev (3m)3.4%
Valuation
Industry RankSector Rank
PE 22.1
Fwd PE 19.57
P/S 3.25
P/FCF 17.4
P/OCF 16.4
P/B 2.1
P/tB 6.89
EV/EBITDA 38.4
EPS(TTM)4.91
EY4.53%
EPS(NY)5.54
Fwd EY5.11%
FCF(TTM)6.24
FCFY5.75%
OCF(TTM)6.62
OCFY6.1%
SpS33.42
BVpS51.59
TBVpS15.75
PEG (NY)1.71
PEG (5Y)0.26
Graham Number75.49
Profitability
Industry RankSector Rank
ROA 0.35%
ROE 0.43%
ROCE 1.66%
ROIC 1.02%
ROICexc 1.42%
ROICexgc 9.27%
OM 2.92%
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 2.89
Cap/Depr 29.58%
Cap/Sales 1.14%
Interest Coverage 250
Cash Conversion 292.24%
Profit Quality 2794.31%
Current Ratio 4.03
Quick Ratio 4.03
Altman-Z 4.77
F-Score6
WACC9.23%
ROIC/WACC0.11
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 Y12.93%
EPS Next 2Y13.97%
EPS Next 3Y13.83%
EPS Next 5Y11.5%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y9.82%
Revenue growth 5Y23.53%
Sales Q2Q%14.32%
Revenue Next Year12.17%
Revenue Next 2Y10.08%
Revenue Next 3Y9.9%
Revenue Next 5Y7.08%
EBIT growth 1Y465.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year29.68%
EBIT Next 3YN/A
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 3 / 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.