TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWLO - US90138F1021 - Common Stock
127.32 USD
+2.1 (+1.68%)
127.32 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TWLO. TWLO was compared to 85 industry peers in the IT Services industry. While TWLO has a great health rating, there are worries on its profitability. TWLO is growing strongly while it is still valued neutral. This is a good combination!
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.
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 (0.69%) which is comparable to the rest of the industry.
TWLO has a Return On Equity of 0.85%. This is comparable to the rest of the industry: TWLO outperforms 49.41% of its industry peers.
TWLO has a Return On Invested Capital (0.97%) which 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
TWLO's Profit Margin of 1.37% is in line compared to the rest of the industry. TWLO outperforms 47.06% of its industry peers.
The Operating Margin of TWLO (2.24%) is comparable to the rest of the industry.
The Gross Margin of TWLO (49.35%) is better than 69.41% 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
TWLO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TWLO has less shares outstanding
Compared to 5 years ago, TWLO has more shares outstanding
The debt/assets ratio for TWLO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.09 indicates that TWLO is not in any danger for bankruptcy at the moment.
TWLO has a better Altman-Z score (6.09) than 83.53% of its industry peers.
The Debt to FCF ratio of TWLO is 1.27, which is an excellent value as it means it would take TWLO, only 1.27 years of fcf income to pay off 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 75.29% of its industry peers.
TWLO has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TWLO (0.13) is better than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.09 |
ROIC/WACC0.11
WACC8.54%
2.3 Liquidity
A Current Ratio of 4.68 indicates that TWLO has no problem at all paying its short term obligations.
The Current ratio of TWLO (4.68) is better than 89.41% 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.
TWLO has a Quick ratio of 4.68. This is amongst the best in the industry. TWLO outperforms 89.41% of its industry peers.
| 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.
The Earnings Per Share has been growing by 89.75% on average over the past years. This is a very strong growth
The Revenue has grown by 12.84% in the past year. This is quite good.
The Revenue has been growing by 31.48% on average over the past years. This is a very strong growth!
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.
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
Based on the Price/Earnings ratio of 27.80, the valuation of TWLO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TWLO.
TWLO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
TWLO is valuated rather expensively with a Price/Forward Earnings ratio of 22.92.
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 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.8 | ||
| Fwd PE | 22.92 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.66 | ||
| EV/EBITDA | 52.43 |
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.
TWLO's earnings are expected to grow with 20.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)0.31
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 | N/A |
127.32
+2.1 (+1.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.53%
Inst Owner Change8.3%
Ins Owners0.1%
Ins Owner Change-3.61%
Market Cap19.30B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.33
Price Target141.34 (11.01%)
Short Float %3.85%
Short Ratio2.36
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)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)6.79%
PT rev (3m)6.8%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)9.16%
EPS NY rev (1m)0.6%
EPS NY rev (3m)5.1%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.8 | ||
| Fwd PE | 22.92 | ||
| P/S | 3.94 | ||
| P/FCF | 24.66 | ||
| P/OCF | 22.98 | ||
| P/B | 2.44 | ||
| P/tB | 7.74 | ||
| EV/EBITDA | 52.43 |
EPS(TTM)4.58
EY3.6%
EPS(NY)5.55
Fwd EY4.36%
FCF(TTM)5.16
FCFY4.06%
OCF(TTM)5.54
OCFY4.35%
SpS32.29
BVpS52.08
TBVpS16.45
PEG (NY)0.85
PEG (5Y)0.31
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 | 6.09 |
F-Score6
WACC8.54%
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.
What is the valuation status of TWILIO INC - A (TWLO) stock?
ChartMill assigns a valuation rating of 4 / 10 to TWILIO INC - A (TWLO). This can be considered as Fairly Valued.
What is the profitability of TWLO stock?
TWILIO INC - A (TWLO) has a profitability rating of 3 / 10.
What is the financial health of TWILIO INC - A (TWLO) stock?
The financial health rating of TWILIO INC - A (TWLO) is 8 / 10.
What is the expected EPS growth for TWILIO INC - A (TWLO) stock?
The Earnings per Share (EPS) of TWILIO INC - A (TWLO) is expected to grow by 32.58% in the next year.