TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWLO - US90138F1021 - Common Stock
131.39 USD
-6.04 (-4.39%)
131.25 USD
-0.14 (-0.11%)
Overall TWLO gets a fundamental rating of 5 out of 10. We evaluated TWLO against 88 industry peers in the IT Services industry. While TWLO has a great health rating, there are worries on its profitability. TWLO shows excellent growth, but is valued quite expensive already.
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 always reported negative net income.
In multiple years TWLO reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.69%, TWLO is in line with its industry, outperforming 48.86% of the companies in the same industry.
TWLO's Return On Equity of 0.85% is in line compared to the rest of the industry. TWLO outperforms 52.27% of its industry peers.
TWLO's Return On Invested Capital of 0.97% is in line compared to the rest of the industry. TWLO outperforms 48.86% of its industry peers.
| 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
TWLO's Profit Margin of 1.37% is in line compared to the rest of the industry. TWLO outperforms 48.86% of its industry peers.
Looking at the Operating Margin, with a value of 2.24%, TWLO is in line with its industry, outperforming 46.59% of the companies in the same industry.
TWLO's Gross Margin of 49.35% is fine compared to the rest of the industry. TWLO outperforms 70.45% 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 | 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
TWLO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TWLO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TWLO has more shares outstanding
Compared to 1 year ago, TWLO has a worse debt to assets ratio.
2.2 Solvency
TWLO has an Altman-Z score of 6.59. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.59, TWLO belongs to the top of the industry, outperforming 84.09% of the companies in the same industry.
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.
TWLO has a Debt to FCF ratio of 1.27. This is in the better half of the industry: TWLO outperforms 76.14% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that TWLO is not too dependend on debt financing.
TWLO has a Debt to Equity ratio of 0.13. This is in the better half of the industry: TWLO outperforms 67.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.59 |
ROIC/WACC0.11
WACC9.02%
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.
The Current ratio of TWLO (4.68) is better than 87.50% of its industry peers.
A Quick Ratio of 4.68 indicates that TWLO has no problem at all paying 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
TWLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.01%, 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.
TWLO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.84%.
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.
Based on estimates for the next years, TWLO will show a quite strong growth in Revenue. The Revenue will grow by 8.41% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.69, the valuation of TWLO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TWLO is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.19, TWLO is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.65, the valuation of TWLO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TWLO is on the same level as its industry peers.
TWLO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.69 | ||
| Fwd PE | 23.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TWLO.
TWLO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.45 | ||
| EV/EBITDA | 57.42 |
4.3 Compensation for Growth
TWLO's 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 20.23% in the coming years.
PEG (NY)0.88
PEG (5Y)0.32
EPS Next 2Y22.69%
EPS Next 3Y20.23%
5. Dividend
5.1 Amount
TWLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
131.39
-6.04 (-4.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.77%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change-1.55%
Market Cap19.92B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.92
Price Target141.34 (7.57%)
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)0.88%
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 | 28.69 | ||
| Fwd PE | 23.65 | ||
| P/S | 4.07 | ||
| P/FCF | 25.45 | ||
| P/OCF | 23.71 | ||
| P/B | 2.52 | ||
| P/tB | 7.99 | ||
| EV/EBITDA | 57.42 |
EPS(TTM)4.58
EY3.49%
EPS(NY)5.55
Fwd EY4.23%
FCF(TTM)5.16
FCFY3.93%
OCF(TTM)5.54
OCFY4.22%
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 | 6.59 |
F-Score6
WACC9.02%
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.