TWILIO INC - A (TWLO) Stock Fundamental Analysis
NYSE:TWLO - New York Stock Exchange, Inc. - US90138F1021 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TWLO. TWLO was compared to 82 industry peers in the IT Services industry. No worries on liquidiy or solvency for TWLO as it has an excellent financial health rating, but there are worries on the profitability. TWLO is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year TWLO was profitable.
In the past year TWLO had a positive cash flow from operations.
In the past 5 years TWLO always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: TWLO reported negative operating cash flow in multiple years.
1.2 Ratios
TWLO has a Return On Assets (-0.35%) which is in line with its industry peers.
TWLO has a Return On Equity (-0.43%) which is in line with 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 has a Operating Margin (0.35%) which is comparable to the rest of the industry.
The Gross Margin of TWLO (50.52%) is better than 71.95% of its industry peers.
In the last couple of years the Gross Margin of TWLO has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TWLO is destroying value.
TWLO has less shares outstanding than it did 1 year ago.
TWLO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TWLO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.58 indicates that TWLO is not in any danger for bankruptcy at the moment.
TWLO has a better Altman-Z score (5.58) than 76.83% of its industry peers.
TWLO has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
TWLO's Debt to FCF ratio of 1.51 is fine compared to the rest of the industry. TWLO outperforms 75.61% of its industry peers.
TWLO has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
TWLO has a Debt to Equity ratio of 0.12. This is in the better half of the industry: TWLO outperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 5.58 |
ROIC/WACC0.02
WACC9.31%
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.
Looking at the Current ratio, with a value of 4.78, TWLO belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
A Quick Ratio of 4.78 indicates that TWLO has no problem at all paying its short term obligations.
TWLO has a better Quick ratio (4.78) than 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.78 | ||
| Quick Ratio | 4.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.96% over the past year.
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 grown by 9.27% in the past year. This is quite good.
TWLO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.48% yearly.
EPS 1Y (TTM)44.96%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%42.5%
Revenue 1Y (TTM)9.27%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%11.98%
3.2 Future
TWLO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.05% yearly.
Based on estimates for the next years, TWLO will show a quite strong growth in Revenue. The Revenue will grow by 8.19% on average per year.
EPS Next Y25.61%
EPS Next 2Y20.88%
EPS Next 3Y19.69%
EPS Next 5Y20.05%
Revenue Next Year8.94%
Revenue Next 2Y8.38%
Revenue Next 3Y8.41%
Revenue Next 5Y8.19%
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
A Price/Earnings ratio of 28.50 indicates a quite expensive valuation of TWLO.
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 26.60.
TWLO is valuated rather expensively with a Price/Forward Earnings ratio of 21.30.
Based on the Price/Forward Earnings ratio, TWLO is valued a bit cheaper than 63.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, TWLO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 21.3 |
4.2 Price Multiples
TWLO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TWLO is more expensive than 64.63% of the companies in the same industry.
TWLO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.63 | ||
| EV/EBITDA | 65.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TWLO's earnings are expected to grow with 19.69% in the coming years.
PEG (NY)1.11
PEG (5Y)0.32
EPS Next 2Y20.88%
EPS Next 3Y19.69%
5. Dividend
5.1 Amount
No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TWLO (6/13/2025, 12:16:03 PM)
114.84
-0.96 (-0.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners80.73%
Inst Owner Change1.32%
Ins Owners0.11%
Ins Owner Change1.49%
Market Cap17.53B
Analysts77.14
Price Target128.38 (11.79%)
Short Float %2.96%
Short Ratio1.65
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)0.49%
PT rev (3m)-8.87%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)1.19%
EPS NY rev (1m)4.39%
EPS NY rev (3m)5.55%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 21.3 | ||
| P/S | 3.83 | ||
| P/FCF | 26.63 | ||
| P/OCF | 24.45 | ||
| P/B | 2.19 | ||
| P/tB | 6.88 | ||
| EV/EBITDA | 65.2 |
EPS(TTM)4.03
EY3.51%
EPS(NY)5.39
Fwd EY4.7%
FCF(TTM)4.31
FCFY3.76%
OCF(TTM)4.7
OCFY4.09%
SpS30.02
BVpS52.43
TBVpS16.7
PEG (NY)1.11
PEG (5Y)0.32
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 | 5.58 |
F-Score6
WACC9.31%
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)44.96%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%42.5%
EPS Next Y25.61%
EPS Next 2Y20.88%
EPS Next 3Y19.69%
EPS Next 5Y20.05%
Revenue 1Y (TTM)9.27%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%11.98%
Revenue Next Year8.94%
Revenue Next 2Y8.38%
Revenue Next 3Y8.41%
Revenue Next 5Y8.19%
EBIT growth 1Y105.34%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.77%
EBIT Next 3Y23.41%
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%