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THOUGHTWORKS HOLDING INC (TWKS) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:TWKS - US88546E1055 - Common Stock

4.47 USD
-0.02 (-0.45%)
Last: 11/12/2024, 8:00:01 PM
4.47 USD
0 (0%)
After Hours: 11/12/2024, 8:00:01 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to TWKS. TWKS was compared to 88 industry peers in the IT Services industry. While TWKS seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
In the past year TWKS has reported a negative cash flow from operations.
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

With a Return On Assets value of -9.28%, TWKS is not doing good in the industry: 69.51% of the companies in the same industry are doing better.
TWKS has a Return On Equity of -15.86%. This is comparable to the rest of the industry: TWKS outperforms 40.24% of 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

Looking at the Gross Margin, with a value of 29.59%, TWKS is doing worse than 63.41% of the companies in the same industry.
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 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

An Altman-Z score of 2.35 indicates that TWKS is not a great score, but indicates only limited risk for bankruptcy at the moment.
TWKS has a Altman-Z score (2.35) which is in line with its industry peers.
A Debt/Equity ratio of 0.39 indicates that TWKS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.39, TWKS is in line with its industry, outperforming 51.22% of the companies in the same 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

A Current Ratio of 2.59 indicates that TWKS has no problem at all paying its short term obligations.
TWKS has a Current ratio of 2.59. This is in the better half of the industry: TWKS outperforms 74.39% of its industry peers.
A Quick Ratio of 2.59 indicates that TWKS has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.59, TWKS is doing good in the industry, outperforming 75.61% of the companies in the same industry.
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.
The Revenue for TWKS has decreased by -13.07% 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)-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

Based on estimates for the next years, TWKS will show a very strong growth in Earnings Per Share. The EPS will grow by 28.97% on average per year.
The Revenue is expected to grow by 2.29% on average over the next years.
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

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.
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.
TWKS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.46.
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

TWKS's earnings are expected to grow with 28.97% in the coming years. This may justify a more expensive valuation.
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 IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-12 2024-11-12/bmo
Earnings (Next)N/A N/A
Inst Owners31.08%
Inst Owner Change0%
Ins Owners1.12%
Ins Owner Change0%
Market Cap1.45B
Revenue(TTM)1.13B
Net Income(TTM)-115.70M
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
Graham NumberN/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
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 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

THOUGHTWORKS HOLDING INC / TWKS FAQ

Can you provide the ChartMill fundamental rating for THOUGHTWORKS HOLDING INC?

ChartMill assigns a fundamental rating of 3 / 10 to TWKS.


Can you provide the valuation status for THOUGHTWORKS HOLDING INC?

ChartMill assigns a valuation rating of 1 / 10 to THOUGHTWORKS HOLDING INC (TWKS). This can be considered as Overvalued.


Can you provide the profitability details for THOUGHTWORKS HOLDING INC?

THOUGHTWORKS HOLDING INC (TWKS) has a profitability rating of 1 / 10.


What is the expected EPS growth for THOUGHTWORKS HOLDING INC (TWKS) stock?

The Earnings per Share (EPS) of THOUGHTWORKS HOLDING INC (TWKS) is expected to decline by -69.48% in the next year.


How sustainable is the dividend of THOUGHTWORKS HOLDING INC (TWKS) stock?

The dividend rating of THOUGHTWORKS HOLDING INC (TWKS) is 0 / 10 and the dividend payout ratio is 0%.