TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - NYSE:TWLO - US90138F1021 - Common Stock
102.905 USD
+0.56 (+0.55%)
Taking everything into account, TWLO scores 5 out of 10 in our fundamental rating. TWLO was compared to 87 industry peers in the IT Services industry. TWLO has a great financial health rating, but its profitability evaluates not so good. 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.
In the past year TWLO had a positive cash flow from operations.
TWLO had negative earnings in each of the past 5 years.
In multiple years TWLO reported negative operating cash flow during the last 5 years.
1.2 Ratios
TWLO's Return On Assets of 0.21% is in line compared to the rest of the industry. TWLO outperforms 47.13% of its industry peers.
With a Return On Equity value of 0.25%, TWLO perfoms like the industry average, outperforming 49.43% of the companies in the same industry.
TWLO has a Return On Invested Capital (0.63%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 0.25% | ||
| ROIC | 0.63% |
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 (0.43%) which is comparable to the rest of the industry.
The Operating Margin of TWLO (1.53%) is comparable to the rest of the industry.
TWLO has a Gross Margin of 49.96%. This is in the better half of the industry: TWLO outperforms 70.11% of its industry peers.
TWLO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.53% | ||
| PM (TTM) | 0.43% | ||
| GM | 49.96% |
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 4.96 indicates that TWLO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.96, TWLO is doing good in the industry, outperforming 73.56% of the companies in the same industry.
TWLO has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.37, TWLO is doing good in the industry, outperforming 75.86% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that TWLO is not too dependend on debt financing.
TWLO has a Debt to Equity ratio of 0.12. This is in the better half of the industry: TWLO outperforms 67.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 4.96 |
ROIC/WACC0.07
WACC9.22%
2.3 Liquidity
A Current Ratio of 4.90 indicates that TWLO has no problem at all paying its short term obligations.
TWLO has a better Current ratio (4.90) than 87.36% of its industry peers.
A Quick Ratio of 4.90 indicates that TWLO has no problem at all paying its short term obligations.
TWLO has a Quick ratio of 4.90. This is amongst the best in the industry. TWLO outperforms 87.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.9 | ||
| Quick Ratio | 4.9 |
3. Growth
3.1 Past
TWLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.87%, 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.
The Revenue has grown by 11.56% in the past year. This is quite good.
Measured over the past years, TWLO shows a very strong growth in Revenue. The Revenue has been growing by 31.48% on average per year.
EPS 1Y (TTM)39.87%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%36.78%
Revenue 1Y (TTM)11.56%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%13.48%
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 15.61% on average per year.
Based on estimates for the next years, TWLO will show a small growth in Revenue. The Revenue will grow by 7.84% on average per year.
EPS Next Y25.84%
EPS Next 2Y19.98%
EPS Next 3Y19.47%
EPS Next 5Y15.61%
Revenue Next Year11.23%
Revenue Next 2Y9.68%
Revenue Next 3Y9.17%
Revenue Next 5Y7.84%
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
The Price/Earnings ratio is 23.66, which indicates a rather expensive current valuation of TWLO.
Based on the Price/Earnings ratio, TWLO is valued a bit cheaper than 60.92% of the companies in the same industry.
TWLO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
TWLO is valuated rather expensively with a Price/Forward Earnings ratio of 19.37.
Based on the Price/Forward Earnings ratio, TWLO is valued a bit cheaper than 63.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TWLO to the average of the S&P500 Index (23.05), we can say TWLO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 19.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TWLO is on the same level as its industry peers.
TWLO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TWLO is cheaper than 64.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.8 | ||
| EV/EBITDA | 46.15 |
4.3 Compensation for Growth
The 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 19.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)0.26
EPS Next 2Y19.98%
EPS Next 3Y19.47%
5. Dividend
5.1 Amount
TWLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TWLO (9/29/2025, 9:44:10 AM)
102.905
+0.56 (+0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners89.15%
Inst Owner Change9.44%
Ins Owners0.11%
Ins Owner Change-2.68%
Market Cap15.79B
Analysts78.29
Price Target132.35 (28.61%)
Short Float %6.53%
Short Ratio2.46
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)14.98%
Min EPS beat(2)11.49%
Max EPS beat(2)18.47%
EPS beat(4)3
Avg EPS beat(4)10.41%
Min EPS beat(4)-5.36%
Max EPS beat(4)18.47%
EPS beat(8)7
Avg EPS beat(8)25.19%
EPS beat(12)11
Avg EPS beat(12)64.12%
EPS beat(16)15
Avg EPS beat(16)64.45%
Revenue beat(2)2
Avg Revenue beat(2)1.13%
Min Revenue beat(2)0.9%
Max Revenue beat(2)1.36%
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)0.79%
Revenue beat(12)8
Avg Revenue beat(12)0.61%
Revenue beat(16)11
Avg Revenue beat(16)1.35%
PT rev (1m)0.14%
PT rev (3m)2.82%
EPS NQ rev (1m)1.28%
EPS NQ rev (3m)-4.77%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.48%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 19.37 | ||
| P/S | 3.34 | ||
| P/FCF | 21.8 | ||
| P/OCF | 20.22 | ||
| P/B | 1.96 | ||
| P/tB | 6.03 | ||
| EV/EBITDA | 46.15 |
EPS(TTM)4.35
EY4.23%
EPS(NY)5.31
Fwd EY5.16%
FCF(TTM)4.72
FCFY4.59%
OCF(TTM)5.09
OCFY4.95%
SpS30.82
BVpS52.43
TBVpS17.05
PEG (NY)0.92
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 0.25% | ||
| ROCE | 0.79% | ||
| ROIC | 0.63% | ||
| ROICexc | 0.87% | ||
| ROICexgc | 4.95% | ||
| OM | 1.53% | ||
| PM (TTM) | 0.43% | ||
| GM | 49.96% | ||
| FCFM | 15.32% |
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
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 3Y1.45%
GM growth 5Y-0.98%
F-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 28.26% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 286.52% | ||
| Profit Quality | 3578.28% | ||
| Current Ratio | 4.9 | ||
| Quick Ratio | 4.9 | ||
| Altman-Z | 4.96 |
F-Score6
WACC9.22%
ROIC/WACC0.07
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)39.87%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%36.78%
EPS Next Y25.84%
EPS Next 2Y19.98%
EPS Next 3Y19.47%
EPS Next 5Y15.61%
Revenue 1Y (TTM)11.56%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%13.48%
Revenue Next Year11.23%
Revenue Next 2Y9.68%
Revenue Next 3Y9.17%
Revenue Next 5Y7.84%
EBIT growth 1Y135.34%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.77%
EBIT Next 3Y23.53%
EBIT Next 5YN/A
FCF growth 1Y367.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y498.83%
OCF growth 3YN/A
OCF growth 5Y119.52%