THOUGHTWORKS HOLDING INC (TWKS)

US88546E1055 - Common Stock

2.53  0 (0%)

After market: 2.53 0 (0%)

Fundamental Rating

3

Overall TWKS gets a fundamental rating of 3 out of 10. We evaluated TWKS against 86 industry peers in the IT Services industry. TWKS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. TWKS has a valuation in line with the averages, but on the other hand it scores bad on growth.



2

1. Profitability

1.1 Basic Checks

In the past year TWKS was profitable.
TWKS had a positive operating cash flow in the past year.
In multiple years TWKS reported negative net income over the last 5 years.
Each year in the past 5 years TWKS had a positive operating cash flow.

1.2 Ratios

TWKS's Return On Assets of -5.18% is in line compared to the rest of the industry. TWKS outperforms 40.48% of its industry peers.
TWKS has a Return On Equity (-8.89%) which is in line with its industry peers.
Industry RankSector Rank
ROA -5.18%
ROE -8.89%
ROIC N/A
ROA(3y)-5.48%
ROA(5y)-1.75%
ROE(3y)-10.33%
ROE(5y)-2.96%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

TWKS's Gross Margin of 31.42% is in line compared to the rest of the industry. TWKS outperforms 42.86% of its industry peers.
TWKS's Gross Margin has declined in the last couple of years.
TWKS does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 31.42%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.34%
GM growth 5YN/A

5

2. Health

2.1 Basic Checks

TWKS does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, TWKS has more shares outstanding
Compared to 1 year ago, TWKS has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.77, we must say that TWKS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.77, TWKS is in line with its industry, outperforming 45.24% of the companies in the same industry.
The Debt to FCF ratio of TWKS is 7.31, which is on the high side as it means it would take TWKS, 7.31 years of fcf income to pay off all of its debts.
TWKS has a Debt to FCF ratio of 7.31. This is comparable to the rest of the industry: TWKS outperforms 47.62% of its industry peers.
TWKS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.37, TWKS is in line with its industry, outperforming 55.95% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF 7.31
Altman-Z 1.77
ROIC/WACCN/A
WACC11.04%

2.3 Liquidity

A Current Ratio of 2.69 indicates that TWKS has no problem at all paying its short term obligations.
TWKS has a Current ratio of 2.69. This is in the better half of the industry: TWKS outperforms 77.38% of its industry peers.
TWKS has a Quick Ratio of 2.69. This indicates that TWKS is financially healthy and has no problem in meeting its short term obligations.
TWKS has a Quick ratio of 2.69. This is in the better half of the industry: TWKS outperforms 77.38% of its industry peers.
Industry RankSector Rank
Current Ratio 2.69
Quick Ratio 2.69

3

3. Growth

3.1 Past

The earnings per share for TWKS have decreased strongly by -71.43% in the last year.
The Revenue for TWKS has decreased by -13.06% in the past year. This is quite bad
Measured over the past years, TWKS shows a quite strong growth in Revenue. The Revenue has been growing by 11.94% on average per year.
EPS 1Y (TTM)-71.43%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-80%
Revenue 1Y (TTM)-13.06%
Revenue growth 3Y11.94%
Revenue growth 5YN/A
Revenue growth Q2Q-18.77%

3.2 Future

TWKS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.62% yearly.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y7.86%
EPS Next 2Y35.11%
EPS Next 3Y36.62%
EPS Next 5YN/A
Revenue Next Year-9.79%
Revenue Next 2Y-1.78%
Revenue Next 3Y3.59%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

TWKS is valuated rather expensively with a Price/Earnings ratio of 21.08.
Based on the Price/Earnings ratio, TWKS is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
TWKS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.55, which indicates a rather expensive current valuation of TWKS.
69.05% of the companies in the same industry are more expensive than TWKS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, TWKS is valued at the same level.
Industry RankSector Rank
PE 21.08
Fwd PE 19.55

4.2 Price Multiples

TWKS's Enterprise Value to EBITDA is on the same level as the industry average.
69.05% of the companies in the same industry are more expensive than TWKS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 20.34
EV/EBITDA 28.64

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as TWKS's earnings are expected to grow with 36.62% in the coming years.
PEG (NY)2.68
PEG (5Y)N/A
EPS Next 2Y35.11%
EPS Next 3Y36.62%

0

5. Dividend

5.1 Amount

No dividends for TWKS!.
Industry RankSector Rank
Dividend Yield N/A

THOUGHTWORKS HOLDING INC

NASDAQ:TWKS (3/28/2024, 8:00:02 PM)

After market: 2.53 0 (0%)

2.53

0 (0%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap815.70M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 21.08
Fwd PE 19.55
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.68
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.18%
ROE -8.89%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 31.42%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.69
Quick Ratio 2.69
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-71.43%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y7.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.06%
Revenue growth 3Y11.94%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y