TWILIO INC - A (TWLO) Stock Fundamental Analysis
NYSE:TWLO - US90138F1021 - Common Stock
108.67 USD
+2.64 (+2.49%)
108.66 USD
-0.01 (-0.01%)
We assign a fundamental rating of 5 out of 10 to TWLO. TWLO was compared to 85 industry peers in the IT Services industry. TWLO has a great financial health rating, but its profitability evaluates not so good. TWLO is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year TWLO was profitable.
TWLO had a positive operating cash flow in the past year.
TWLO had negative earnings in each of the past 5 years.
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 (0.21%) which is comparable to the rest of the industry.
TWLO has a Return On Equity (0.25%) which is comparable to the rest of the industry.
TWLO has a Return On Invested Capital (0.63%) which is in line with its industry peers.
| 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
Looking at the Profit Margin, with a value of 0.43%, TWLO is in line with its industry, outperforming 45.88% of the companies in the same industry.
TWLO has a Operating Margin of 1.53%. This is comparable to the rest of the industry: TWLO outperforms 42.35% of its industry peers.
TWLO's Gross Margin of 49.96% is fine compared to the rest of the industry. TWLO outperforms 69.41% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, TWLO has a worse debt to assets ratio.
2.2 Solvency
TWLO has an Altman-Z score of 5.15. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TWLO (5.15) is better than 76.47% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.37, TWLO is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
TWLO has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TWLO (0.12) is better than 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 5.15 |
ROIC/WACC0.07
WACC8.78%
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 Current ratio of 4.90. This is amongst the best in the industry. TWLO outperforms 87.06% 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.
TWLO has a Quick ratio of 4.90. This is amongst the best in the industry. TWLO outperforms 87.06% 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.
The Earnings Per Share has been growing by 89.75% on average over the past years. This is a very strong growth
Looking at the last year, TWLO shows a quite strong growth in Revenue. The Revenue has grown by 11.56% in the last year.
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
TWLO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.61% yearly.
The Revenue is expected to grow by 7.84% on average over the next years.
EPS Next Y26.15%
EPS Next 2Y19.96%
EPS Next 3Y19.11%
EPS Next 5Y15.61%
Revenue Next Year11.17%
Revenue Next 2Y9.66%
Revenue Next 3Y9.2%
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
With a Price/Earnings ratio of 24.98, TWLO is valued on the expensive side.
TWLO's Price/Earnings ratio is in line with the industry average.
TWLO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.06.
Based on the Price/Forward Earnings ratio of 20.46, the valuation of TWLO can be described as rather expensive.
TWLO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.69. TWLO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 20.46 |
4.2 Price Multiples
63.53% of the companies in the same industry are cheaper than TWLO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TWLO indicates a somewhat cheap valuation: TWLO is cheaper than 62.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.02 | ||
| EV/EBITDA | 48.23 |
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.
A more expensive valuation may be justified as TWLO's earnings are expected to grow with 19.11% in the coming years.
PEG (NY)0.96
PEG (5Y)0.28
EPS Next 2Y19.96%
EPS Next 3Y19.11%
5. Dividend
5.1 Amount
No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
108.67
+2.64 (+2.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners85.26%
Inst Owner Change9.44%
Ins Owners0.11%
Ins Owner Change-2.73%
Market Cap16.67B
Analysts78.29
Price Target132.34 (21.78%)
Short Float %4.99%
Short Ratio1.91
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)0.72%
PT rev (3m)3.45%
EPS NQ rev (1m)-5.9%
EPS NQ rev (3m)-4.22%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)3.4%
Revenue NQ rev (3m)2.65%
Revenue NY rev (1m)2.03%
Revenue NY rev (3m)2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 20.46 | ||
| P/S | 3.53 | ||
| P/FCF | 23.02 | ||
| P/OCF | 21.35 | ||
| P/B | 2.07 | ||
| P/tB | 6.37 | ||
| EV/EBITDA | 48.23 |
EPS(TTM)4.35
EY4%
EPS(NY)5.31
Fwd EY4.89%
FCF(TTM)4.72
FCFY4.34%
OCF(TTM)5.09
OCFY4.68%
SpS30.82
BVpS52.43
TBVpS17.05
PEG (NY)0.96
PEG (5Y)0.28
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 | 5.15 |
F-Score6
WACC8.78%
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 Y26.15%
EPS Next 2Y19.96%
EPS Next 3Y19.11%
EPS Next 5Y15.61%
Revenue 1Y (TTM)11.56%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%13.48%
Revenue Next Year11.17%
Revenue Next 2Y9.66%
Revenue Next 3Y9.2%
Revenue Next 5Y7.84%
EBIT growth 1Y135.34%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.77%
EBIT Next 3Y22.84%
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%