TWILIO INC - A (TWLO) Stock Fundamental Analysis
NYSE:TWLO - New York Stock Exchange, Inc. - US90138F1021 - Common Stock - Currency: USD
TWLO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. While TWLO has a great health rating, there are worries on its profitability. TWLO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TWLO had positive earnings in the past year.
TWLO had a positive operating cash flow in the past year.
In the past 5 years TWLO always reported negative net income.
In multiple years TWLO reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.35%, TWLO is in line with its industry, outperforming 43.90% of the companies in the same industry.
TWLO's Return On Equity of -0.43% is in line compared to the rest of the industry. TWLO outperforms 47.56% of its industry peers.
TWLO has a Return On Invested Capital (0.14%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -0.43% | ||
| ROIC | 0.14% |
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's Operating Margin of 0.35% is in line compared to the rest of the industry. TWLO outperforms 40.24% of its industry peers.
The Gross Margin of TWLO (50.52%) is better than 73.17% of its industry peers.
TWLO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.35% | ||
| PM (TTM) | N/A | ||
| GM | 50.52% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TWLO is destroying value.
The number of shares outstanding for TWLO has been reduced compared to 1 year ago.
TWLO has more shares outstanding than it did 5 years ago.
TWLO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.71 indicates that TWLO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.71, TWLO is in the better half of the industry, outperforming 71.95% of the companies in the same industry.
The Debt to FCF ratio of TWLO is 1.51, which is an excellent value as it means it would take TWLO, only 1.51 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.51, TWLO is doing good in the industry, outperforming 76.83% 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's Debt to Equity ratio of 0.12 is fine compared to the rest of the industry. TWLO outperforms 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 4.71 |
ROIC/WACC0.02
WACC9.3%
2.3 Liquidity
TWLO has a Current Ratio of 4.78. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
TWLO has a Current ratio of 4.78. This is amongst the best in the industry. TWLO outperforms 87.80% of its industry peers.
TWLO has a Quick Ratio of 4.78. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TWLO (4.78) is better than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.78 | ||
| Quick Ratio | 4.78 |
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.
The Earnings Per Share has been growing by 89.75% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 7.32% in the past year.
The Revenue has been growing by 31.48% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)39.87%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%36.78%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%13.48%
3.2 Future
The Earnings Per Share is expected to grow by 14.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.79% on average over the next years.
EPS Next Y26.3%
EPS Next 2Y20.57%
EPS Next 3Y19.07%
EPS Next 5Y14.63%
Revenue Next Year8.96%
Revenue Next 2Y8.38%
Revenue Next 3Y8.34%
Revenue Next 5Y7.79%
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
With a Price/Earnings ratio of 22.10, TWLO is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of TWLO is on the same level as its industry peers.
TWLO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
TWLO is valuated rather expensively with a Price/Forward Earnings ratio of 17.92.
TWLO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.09. TWLO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 17.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TWLO is valued a bit more expensive than 62.20% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TWLO indicates a somewhat cheap valuation: TWLO is cheaper than 60.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.29 | ||
| EV/EBITDA | 53.22 |
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.
TWLO's earnings are expected to grow with 19.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)0.25
EPS Next 2Y20.57%
EPS Next 3Y19.07%
5. Dividend
5.1 Amount
No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TWLO (8/11/2025, 12:18:07 PM)
96.15
-2.52 (-2.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners85.26%
Inst Owner Change4.19%
Ins Owners0.11%
Ins Owner Change1.08%
Market Cap14.68B
Analysts77.14
Price Target133.06 (38.39%)
Short Float %3.44%
Short Ratio2.17
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)1
Avg EPS beat(2)6.56%
Min EPS beat(2)-5.36%
Max EPS beat(2)18.47%
EPS beat(4)3
Avg EPS beat(4)13.08%
Min EPS beat(4)-5.36%
Max EPS beat(4)22.19%
EPS beat(8)7
Avg EPS beat(8)33.11%
EPS beat(12)11
Avg EPS beat(12)66.99%
EPS beat(16)15
Avg EPS beat(16)65.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)0.9%
Revenue beat(4)3
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)1.67%
Revenue beat(8)6
Avg Revenue beat(8)1.02%
Revenue beat(12)8
Avg Revenue beat(12)0.55%
Revenue beat(16)11
Avg Revenue beat(16)1.86%
PT rev (1m)3.37%
PT rev (3m)4.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.13%
EPS NY rev (1m)0%
EPS NY rev (3m)4.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 17.92 | ||
| P/S | 3.2 | ||
| P/FCF | 22.29 | ||
| P/OCF | 20.47 | ||
| P/B | 1.83 | ||
| P/tB | 5.76 | ||
| EV/EBITDA | 53.22 |
EPS(TTM)4.35
EY4.52%
EPS(NY)5.36
Fwd EY5.58%
FCF(TTM)4.31
FCFY4.49%
OCF(TTM)4.7
OCFY4.89%
SpS30.02
BVpS52.43
TBVpS16.7
PEG (NY)0.84
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -0.43% | ||
| ROCE | 0.18% | ||
| ROIC | 0.14% | ||
| ROICexc | 0.19% | ||
| ROICexgc | 1.08% | ||
| OM | 0.35% | ||
| PM (TTM) | N/A | ||
| GM | 50.52% | ||
| FCFM | 14.37% |
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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 4.54 | ||
| Cap/Depr | 29.02% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 328.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.78 | ||
| Quick Ratio | 4.78 | ||
| Altman-Z | 4.71 |
F-Score6
WACC9.3%
ROIC/WACC0.02
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 Y26.3%
EPS Next 2Y20.57%
EPS Next 3Y19.07%
EPS Next 5Y14.63%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%13.48%
Revenue Next Year8.96%
Revenue Next 2Y8.38%
Revenue Next 3Y8.34%
Revenue Next 5Y7.79%
EBIT growth 1Y105.34%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.77%
EBIT Next 3Y22.84%
EBIT Next 5YN/A
FCF growth 1Y258.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y314.27%
OCF growth 3YN/A
OCF growth 5Y119.52%