TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - NYSE:TWLO - US90138F1021 - Common Stock
110.1 USD
-1.01 (-0.91%)
Overall TWLO gets a fundamental rating of 5 out of 10. We evaluated TWLO against 86 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 shows excellent growth, but is valued quite expensive already.
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.
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's Return On Assets of 0.21% is in line compared to the rest of the industry. TWLO outperforms 44.19% of its industry peers.
The Return On Equity of TWLO (0.25%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 0.63%, TWLO perfoms like the industry average, outperforming 41.86% of the companies in the same 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 of 0.43%. This is comparable to the rest of the industry: TWLO outperforms 44.19% of its industry peers.
TWLO has a Operating Margin (1.53%) which is comparable to the rest of the industry.
The Gross Margin of TWLO (49.96%) is better than 69.77% 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
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 5.41 indicates that TWLO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.41, TWLO is doing good in the industry, outperforming 75.58% of the companies in the same industry.
The Debt to FCF ratio of TWLO is 1.37, which is an excellent value as it means it would take TWLO, only 1.37 years of fcf income to pay off all of its debts.
TWLO's Debt to FCF ratio of 1.37 is fine compared to the rest of the industry. TWLO outperforms 75.58% 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.
Looking at the Debt to Equity ratio, with a value of 0.12, TWLO is in the better half of the industry, outperforming 67.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 5.41 |
ROIC/WACC0.07
WACC8.95%
2.3 Liquidity
TWLO has a Current Ratio of 4.90. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
TWLO's Current ratio of 4.90 is amongst the best of the industry. TWLO outperforms 87.21% of its industry peers.
TWLO has a Quick Ratio of 4.90. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 4.90, TWLO belongs to the best of the industry, outperforming 87.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.9 | ||
| Quick Ratio | 4.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.87% over the past year.
TWLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 89.75% yearly.
TWLO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.56%.
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)11.56%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%13.48%
3.2 Future
The Earnings Per Share is expected to grow by 15.61% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.84% on average over the next years.
EPS Next Y25.84%
EPS Next 2Y19.98%
EPS Next 3Y19.47%
EPS Next 5Y15.61%
Revenue Next Year11.21%
Revenue Next 2Y9.69%
Revenue Next 3Y9.17%
Revenue Next 5Y7.84%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 25.31, the valuation of TWLO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TWLO is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TWLO to the average of the S&P500 Index (27.77), we can say TWLO is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.73, TWLO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TWLO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TWLO to the average of the S&P500 Index (23.23), we can say TWLO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 20.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TWLO is valued a bit more expensive than the industry average as 60.47% of the companies are valued more cheaply.
TWLO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.32 | ||
| EV/EBITDA | 51.09 |
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)0.98
PEG (5Y)0.28
EPS Next 2Y19.98%
EPS Next 3Y19.47%
5. Dividend
5.1 Amount
No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TWLO (10/22/2025, 3:22:08 PM)
110.1
-1.01 (-0.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners89.15%
Inst Owner Change0.65%
Ins Owners0.11%
Ins Owner Change-3.69%
Market Cap16.89B
Revenue(TTM)4.73B
Net Income(TTM)20.24M
Analysts78.33
Price Target132.35 (20.21%)
Short Float %6.46%
Short Ratio2.47
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%
PT rev (3m)2.82%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-4.71%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 20.73 | ||
| P/S | 3.57 | ||
| P/FCF | 23.32 | ||
| P/OCF | 21.63 | ||
| P/B | 2.1 | ||
| P/tB | 6.46 | ||
| EV/EBITDA | 51.09 |
EPS(TTM)4.35
EY3.95%
EPS(NY)5.31
Fwd EY4.82%
FCF(TTM)4.72
FCFY4.29%
OCF(TTM)5.09
OCFY4.62%
SpS30.82
BVpS52.43
TBVpS17.05
PEG (NY)0.98
PEG (5Y)0.28
Graham Number71.63
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
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 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 | 5.41 |
F-Score6
WACC8.95%
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 Year11.21%
Revenue Next 2Y9.69%
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%