TWILIO INC - A (TWLO) Stock Fundamental Analysis
NYSE:TWLO - New York Stock Exchange, Inc. - US90138F1021 - Common Stock - Currency: USD
Taking everything into account, TWLO scores 5 out of 10 in our fundamental rating. TWLO was compared to 81 industry peers in the IT Services industry. TWLO has a great financial health rating, but its profitability evaluates not so good. TWLO is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year TWLO was profitable.
In the past year TWLO had a positive cash flow from operations.
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 (-0.35%) which is in line with its industry peers.
TWLO has a Return On Equity (-0.43%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 0.14%, TWLO is in line with its industry, outperforming 40.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -0.43% | ||
| ROIC | 0.14% |
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 Operating Margin of 0.35%. This is comparable to the rest of the industry: TWLO outperforms 40.74% of its industry peers.
TWLO has a Gross Margin of 50.52%. This is in the better half of the industry: TWLO outperforms 71.60% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.35% | ||
| PM (TTM) | N/A | ||
| GM | 50.52% |
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.
The debt/assets ratio for TWLO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.80 indicates that TWLO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.80, TWLO is in the better half of the industry, outperforming 76.54% of the companies in the same industry.
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 Debt to FCF ratio of 1.51. This is in the better half of the industry: TWLO outperforms 75.31% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that TWLO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.12, TWLO is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 5.8 |
ROIC/WACC0.01
WACC9.52%
2.3 Liquidity
A Current Ratio of 4.78 indicates that TWLO has no problem at all paying its short term obligations.
The Current ratio of TWLO (4.78) is better than 90.12% of its industry peers.
TWLO has a Quick Ratio of 4.78. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
TWLO's Quick ratio of 4.78 is amongst the best of the industry. TWLO outperforms 90.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.78 | ||
| Quick Ratio | 4.78 |
3. Growth
3.1 Past
TWLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.96%, 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 9.27% 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)44.96%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%42.5%
Revenue 1Y (TTM)9.27%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%11.98%
3.2 Future
Based on estimates for the next years, TWLO will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.63% on average per year.
The Revenue is expected to grow by 7.79% on average over the next years.
EPS Next Y26.34%
EPS Next 2Y21.01%
EPS Next 3Y19.93%
EPS Next 5Y14.63%
Revenue Next Year8.94%
Revenue Next 2Y8.36%
Revenue Next 3Y8.41%
Revenue Next 5Y7.79%
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
The Price/Earnings ratio is 29.84, which means the current valuation is very expensive for TWLO.
TWLO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of TWLO to the average of the S&P500 Index (27.45), we can say TWLO is valued inline with the index average.
TWLO is valuated rather expensively with a Price/Forward Earnings ratio of 22.26.
60.49% of the companies in the same industry are more expensive than TWLO, based on the Price/Forward Earnings ratio.
TWLO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.84 | ||
| Fwd PE | 22.26 |
4.2 Price Multiples
64.20% of the companies in the same industry are cheaper than TWLO, based on the Enterprise Value to EBITDA ratio.
TWLO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.89 | ||
| EV/EBITDA | 68.32 |
4.3 Compensation for Growth
TWLO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TWLO's earnings are expected to grow with 19.93% in the coming years.
PEG (NY)1.13
PEG (5Y)0.33
EPS Next 2Y21.01%
EPS Next 3Y19.93%
5. Dividend
5.1 Amount
TWLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
120.27
+3.76 (+3.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners82.64%
Inst Owner Change-55.95%
Ins Owners0.13%
Ins Owner Change1.95%
Market Cap18.36B
Analysts77.14
Price Target128.72 (7.03%)
Short Float %3.16%
Short Ratio1.84
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)6.56%
Min EPS beat(2)-5.36%
Max EPS beat(2)18.47%
EPS beat(4)3
Avg EPS beat(4)13.08%
Min EPS beat(4)-5.36%
Max EPS beat(4)22.19%
EPS beat(8)7
Avg EPS beat(8)33.11%
EPS beat(12)11
Avg EPS beat(12)66.99%
EPS beat(16)15
Avg EPS beat(16)65.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)0.9%
Revenue beat(4)3
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)1.67%
Revenue beat(8)6
Avg Revenue beat(8)1.02%
Revenue beat(12)8
Avg Revenue beat(12)0.55%
Revenue beat(16)11
Avg Revenue beat(16)1.86%
PT rev (1m)0.76%
PT rev (3m)-11.09%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)1%
EPS NY rev (1m)0.58%
EPS NY rev (3m)4.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.84 | ||
| Fwd PE | 22.26 | ||
| P/S | 4.01 | ||
| P/FCF | 27.89 | ||
| P/OCF | 25.6 | ||
| P/B | 2.29 | ||
| P/tB | 7.2 | ||
| EV/EBITDA | 68.32 |
EPS(TTM)4.03
EY3.35%
EPS(NY)5.4
Fwd EY4.49%
FCF(TTM)4.31
FCFY3.59%
OCF(TTM)4.7
OCFY3.91%
SpS30.02
BVpS52.43
TBVpS16.7
PEG (NY)1.13
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -0.43% | ||
| ROCE | 0.18% | ||
| ROIC | 0.14% | ||
| ROICexc | 0.19% | ||
| ROICexgc | 1.08% | ||
| OM | 0.35% | ||
| PM (TTM) | N/A | ||
| GM | 50.52% | ||
| FCFM | 14.37% |
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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 4.54 | ||
| Cap/Depr | 29.02% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 328.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.78 | ||
| Quick Ratio | 4.78 | ||
| Altman-Z | 5.8 |
F-Score6
WACC9.52%
ROIC/WACC0.01
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)44.96%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%42.5%
EPS Next Y26.34%
EPS Next 2Y21.01%
EPS Next 3Y19.93%
EPS Next 5Y14.63%
Revenue 1Y (TTM)9.27%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%11.98%
Revenue Next Year8.94%
Revenue Next 2Y8.36%
Revenue Next 3Y8.41%
Revenue Next 5Y7.79%
EBIT growth 1Y105.34%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.77%
EBIT Next 3Y23.41%
EBIT Next 5YN/A
FCF growth 1Y258.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y314.27%
OCF growth 3YN/A
OCF growth 5Y119.52%