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THOUGHTWORKS HOLDING INC (TWKS) Stock Fundamental Analysis

NASDAQ:TWKS - Nasdaq - US88546E1055 - Common Stock - Currency: USD

4.47  -0.02 (-0.45%)

After market: 4.47 0 (0%)

Fundamental Rating

3

Taking everything into account, TWKS scores 3 out of 10 in our fundamental rating. TWKS was compared to 82 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 is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year TWKS has reported negative net income.
TWKS had a negative operating cash flow in the past year.
In multiple years TWKS reported negative net income over the last 5 years.
TWKS had a positive operating cash flow in each of the past 5 years.
TWKS Yearly Net Income VS EBIT VS OCF VS FCFTWKS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 50M -50M 100M -100M

1.2 Ratios

TWKS has a worse Return On Assets (-9.28%) than 69.51% of its industry peers.
TWKS has a Return On Equity (-15.86%) which is in line with its industry peers.
Industry RankSector Rank
ROA -9.28%
ROE -15.86%
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
TWKS Yearly ROA, ROE, ROICTWKS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 5 -5 -10

1.3 Margins

The Gross Margin of TWKS (29.59%) is worse than 63.41% of its industry peers.
TWKS's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for TWKS so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 29.59%
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
TWKS Yearly Profit, Operating, Gross MarginsTWKS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 10 20 30 40

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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.
TWKS Yearly Shares OutstandingTWKS Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 100M 200M 300M
TWKS Yearly Total Debt VS Total AssetsTWKS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 500M 1B

2.2 Solvency

TWKS has an Altman-Z score of 2.35. This is not the best score and indicates that TWKS is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.35, TWKS perfoms like the industry average, outperforming 45.12% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that TWKS is not too dependend on debt financing.
TWKS has a Debt to Equity ratio (0.39) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Altman-Z 2.35
ROIC/WACCN/A
WACC10.8%
TWKS Yearly LT Debt VS Equity VS FCFTWKS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.3 Liquidity

TWKS has a Current Ratio of 2.59. This indicates that TWKS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.59, TWKS is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
TWKS has a Quick Ratio of 2.59. This indicates that TWKS is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TWKS (2.59) is better than 75.61% of its industry peers.
Industry RankSector Rank
Current Ratio 2.59
Quick Ratio 2.59
TWKS Yearly Current Assets VS Current LiabilitesTWKS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 200M 400M 600M

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3

3. Growth

3.1 Past

The earnings per share for TWKS have decreased strongly by -100.00% in the last year.
Looking at the last year, TWKS shows a very negative growth in Revenue. The Revenue has decreased by -13.07% in the last year.
TWKS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.94% yearly.
EPS 1Y (TTM)-100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
Revenue 1Y (TTM)-13.07%
Revenue growth 3Y11.94%
Revenue growth 5YN/A
Sales Q2Q%-6.7%

3.2 Future

The Earnings Per Share is expected to grow by 28.97% on average over the next years. This is a very strong growth
Based on estimates for the next years, TWKS will show a small growth in Revenue. The Revenue will grow by 2.29% on average per year.
EPS Next Y-69.48%
EPS Next 2Y18.61%
EPS Next 3Y28.97%
EPS Next 5YN/A
Revenue Next Year-11.5%
Revenue Next 2Y-2.79%
Revenue Next 3Y2.29%
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.
TWKS Yearly Revenue VS EstimatesTWKS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
TWKS Yearly EPS VS EstimatesTWKS Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Forward Earnings ratio is 26.48, which means the current valuation is very expensive for TWKS.
TWKS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, TWKS is valued a bit more expensive.
Industry RankSector Rank
PE N/A
Fwd PE 26.48
TWKS Price Earnings VS Forward Price EarningsTWKS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
TWKS Per share dataTWKS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

A more expensive valuation may be justified as TWKS's earnings are expected to grow with 28.97% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.61%
EPS Next 3Y28.97%

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0

5. Dividend

5.1 Amount

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

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THOUGHTWORKS HOLDING INC

NASDAQ:TWKS (11/12/2024, 8:00:01 PM)

After market: 4.47 0 (0%)

4.47

-0.02 (-0.45%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-12 2024-11-12/bmo
Earnings (Next)N/A N/A
Inst Owners31.08%
Inst Owner Change-15.69%
Ins Owners1.12%
Ins Owner Change-5498.13%
Market Cap1.45B
Analysts72
Price Target4.34 (-2.91%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-710.28%
Min EPS beat(2)-1395.67%
Max EPS beat(2)-24.89%
EPS beat(4)1
Avg EPS beat(4)-351.82%
Min EPS beat(4)-1395.67%
Max EPS beat(4)51.41%
EPS beat(8)2
Avg EPS beat(8)-183.3%
EPS beat(12)4
Avg EPS beat(12)-118.72%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)0.24%
Revenue beat(4)1
Avg Revenue beat(4)-2.56%
Min Revenue beat(4)-7.52%
Max Revenue beat(4)0.24%
Revenue beat(8)1
Avg Revenue beat(8)-2.37%
Revenue beat(12)2
Avg Revenue beat(12)-1.59%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)6.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-39.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 26.48
P/S 1.41
P/FCF N/A
P/OCF N/A
P/B 1.99
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0
EYN/A
EPS(NY)0.17
Fwd EY3.78%
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)0
OCFYN/A
SpS3.18
BVpS2.25
TBVpS-0.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -9.28%
ROE -15.86%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 29.59%
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg 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 3Y-8.34%
GM growth 5YN/A
F-Score1
Asset Turnover0.83
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 39.74%
Cap/Sales 1.26%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.59
Quick Ratio 2.59
Altman-Z 2.35
F-Score1
WACC10.8%
ROIC/WACCN/A
Cap/Depr(3y)61.42%
Cap/Depr(5y)64.3%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
EPS Next Y-69.48%
EPS Next 2Y18.61%
EPS Next 3Y28.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.07%
Revenue growth 3Y11.94%
Revenue growth 5YN/A
Sales Q2Q%-6.7%
Revenue Next Year-11.5%
Revenue Next 2Y-2.79%
Revenue Next 3Y2.29%
Revenue Next 5YN/A
EBIT growth 1Y-323.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2826.99%
EBIT Next 3Y288.88%
EBIT Next 5YN/A
FCF growth 1Y-125.69%
FCF growth 3Y-28.6%
FCF growth 5YN/A
OCF growth 1Y-101.37%
OCF growth 3Y-26.84%
OCF growth 5YN/A