TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWLO - US90138F1021 - Common Stock
132.01 USD
+0.62 (+0.47%)
132.01 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TWLO. TWLO was compared to 88 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 expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
TWLO had positive earnings in the past year.
In the past year TWLO had a positive cash flow from operations.
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
With a Return On Assets value of 0.69%, TWLO perfoms like the industry average, outperforming 48.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 0.85%, TWLO is in line with its industry, outperforming 52.27% of the companies in the same industry.
The Return On Invested Capital of TWLO (0.97%) is comparable to the rest of the 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
With a Profit Margin value of 1.37%, TWLO perfoms like the industry average, outperforming 48.86% of the companies in the same industry.
TWLO has a Operating Margin (2.24%) which is in line with its industry peers.
TWLO has a better Gross Margin (49.35%) than 70.45% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TWLO 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 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 6.29. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
TWLO has a better Altman-Z score (6.29) than 84.09% of its industry peers.
TWLO has a debt to FCF ratio of 1.27. This is a very positive value and a sign of high solvency as it would only need 1.27 years to pay back of all of its debts.
The Debt to FCF ratio of TWLO (1.27) is better than 75.00% of its industry peers.
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 67.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.29 |
ROIC/WACC0.11
WACC8.91%
2.3 Liquidity
TWLO has a Current Ratio of 4.68. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
TWLO has a Current ratio of 4.68. This is amongst the best in the industry. TWLO outperforms 87.50% of its industry peers.
TWLO has a Quick Ratio of 4.68. 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 4.68, TWLO belongs to the top 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.
TWLO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.48% yearly.
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
Based on estimates for the next years, TWLO will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.65% on average per year.
The Revenue is expected to grow by 8.41% on average over the next years. This is quite good.
EPS Next Y32.58%
EPS Next 2Y22.69%
EPS Next 3Y20.23%
EPS Next 5Y16.65%
Revenue Next Year13.02%
Revenue Next 2Y10.87%
Revenue Next 3Y9.84%
Revenue Next 5Y8.41%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
TWLO is valuated quite expensively with a Price/Earnings ratio of 28.82.
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 27.25, which is the current average of the S&P500 Index.
TWLO is valuated rather expensively with a Price/Forward Earnings ratio of 23.77.
TWLO's Price/Forward Earnings ratio is in line with the industry average.
TWLO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.82 | ||
| Fwd PE | 23.77 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.57 | ||
| EV/EBITDA | 54.44 |
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)0.88
PEG (5Y)0.32
EPS Next 2Y22.69%
EPS Next 3Y20.23%
5. Dividend
5.1 Amount
No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
132.01
+0.62 (+0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.77%
Inst Owner Change0.03%
Ins Owners0.11%
Ins Owner Change-3.33%
Market Cap20.01B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.92
Price Target141.34 (7.07%)
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)0%
PT rev (3m)6.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.75%
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 | 28.82 | ||
| Fwd PE | 23.77 | ||
| P/S | 4.09 | ||
| P/FCF | 25.57 | ||
| P/OCF | 23.82 | ||
| P/B | 2.53 | ||
| P/tB | 8.02 | ||
| EV/EBITDA | 54.44 |
EPS(TTM)4.58
EY3.47%
EPS(NY)5.55
Fwd EY4.21%
FCF(TTM)5.16
FCFY3.91%
OCF(TTM)5.54
OCFY4.2%
SpS32.29
BVpS52.08
TBVpS16.45
PEG (NY)0.88
PEG (5Y)0.32
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 | 6.29 |
F-Score6
WACC8.91%
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 2Y10.87%
Revenue Next 3Y9.84%
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 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.