TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWLO - US90138F1021 - Common Stock
140.46 USD
+0.15 (+0.11%)
140.46 USD
0 (0%)
TWLO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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
In the past year TWLO was profitable.
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
Looking at the Return On Assets, with a value of 0.69%, TWLO is in line with its industry, outperforming 47.73% of the companies in the same industry.
TWLO has a Return On Equity (0.85%) which is comparable to the rest of the industry.
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 has a Profit Margin of 1.37%. This is comparable to the rest of the industry: TWLO outperforms 48.86% of its industry peers.
TWLO has a Operating Margin of 2.24%. This is comparable to the rest of the industry: TWLO outperforms 46.59% of its industry peers.
TWLO has a Gross Margin of 49.35%. This is in the better half of the industry: TWLO outperforms 69.32% 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.
Compared to 1 year ago, TWLO has less shares outstanding
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 6.74. 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 6.74, TWLO belongs to the top of the industry, outperforming 85.23% 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.
With a decent Debt to FCF ratio value of 1.27, TWLO is doing good in the industry, outperforming 76.14% of the companies in the same industry.
TWLO has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
TWLO has a better Debt to Equity ratio (0.13) than 64.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.74 |
ROIC/WACC0.11
WACC8.99%
2.3 Liquidity
A Current Ratio of 4.68 indicates that TWLO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.68, TWLO belongs to the top of the industry, outperforming 88.64% of the companies in the same industry.
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's Quick ratio of 4.68 is amongst the best of the industry. TWLO outperforms 88.64% of its industry peers.
| 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.
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
TWLO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.65% yearly.
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.
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 30.67, 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 26.92, TWLO is valued at the same level.
With a Price/Forward Earnings ratio of 25.29, TWLO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as TWLO.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, TWLO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 25.29 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TWLO.
The rest of the industry has a similar Price/Free Cash Flow ratio as TWLO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.2 | ||
| EV/EBITDA | 58.91 |
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)0.94
PEG (5Y)0.34
EPS Next 2Y22.69%
EPS Next 3Y20.23%
5. Dividend
5.1 Amount
No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
140.46
+0.15 (+0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.53%
Inst Owner Change8.34%
Ins Owners0.1%
Ins Owner Change-3.6%
Market Cap21.30B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.33
Price Target141.34 (0.63%)
Short Float %3.76%
Short Ratio2.45
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)8.68%
EPS NY rev (1m)0.6%
EPS NY rev (3m)5.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 25.29 | ||
| P/S | 4.35 | ||
| P/FCF | 27.2 | ||
| P/OCF | 25.35 | ||
| P/B | 2.7 | ||
| P/tB | 8.54 | ||
| EV/EBITDA | 58.91 |
EPS(TTM)4.58
EY3.26%
EPS(NY)5.55
Fwd EY3.95%
FCF(TTM)5.16
FCFY3.68%
OCF(TTM)5.54
OCFY3.95%
SpS32.29
BVpS52.08
TBVpS16.45
PEG (NY)0.94
PEG (5Y)0.34
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 | 6.74 |
F-Score6
WACC8.99%
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 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.
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.