TWILIO INC - A (TWLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TWLO - US90138F1021 - Common Stock
126.52 USD
+1.3 (+1.04%)
TWLO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. TWLO has a great financial health rating, but its profitability evaluates not so good. TWLO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
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
With a Return On Assets value of 0.69%, TWLO perfoms like the industry average, outperforming 48.24% of the companies in the same industry.
TWLO has a Return On Equity of 0.85%. This is comparable to the rest of the industry: TWLO outperforms 51.76% of its industry peers.
TWLO has a Return On Invested Capital of 0.97%. This is comparable to the rest of the industry: TWLO outperforms 48.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 0.85% | ||
| ROIC | 0.97% |
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 Profit Margin of 1.37% is in line compared to the rest of the industry. TWLO outperforms 48.24% of its industry peers.
TWLO's Operating Margin of 2.24% is in line compared to the rest of the industry. TWLO outperforms 44.71% of its industry peers.
TWLO has a better Gross Margin (49.35%) than 70.59% of its industry peers.
TWLO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.24% | ||
| PM (TTM) | 1.37% | ||
| GM | 49.35% |
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.
The number of shares outstanding for TWLO has been increased compared to 5 years ago.
TWLO has a worse debt/assets ratio than last year.
2.2 Solvency
TWLO has an Altman-Z score of 5.98. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
TWLO's Altman-Z score of 5.98 is amongst the best of the industry. TWLO outperforms 82.35% of its industry peers.
The Debt to FCF ratio of TWLO is 1.27, which is an excellent value as it means it would take TWLO, only 1.27 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.27, TWLO is doing good in the industry, outperforming 74.12% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that TWLO is not too dependend on debt financing.
The Debt to Equity ratio of TWLO (0.13) is better than 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 5.98 |
ROIC/WACC0.11
WACC8.46%
2.3 Liquidity
A Current Ratio of 4.68 indicates that TWLO has no problem at all paying its short term obligations.
TWLO has a Current ratio of 4.68. This is amongst the best in the industry. TWLO outperforms 89.41% of its industry peers.
TWLO has a Quick Ratio of 4.68. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
TWLO has a better Quick ratio (4.68) than 89.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.68 | ||
| Quick Ratio | 4.68 |
3. Growth
3.1 Past
TWLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.01%, 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 grown by 12.84% 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)29.01%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%22.55%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%14.71%
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 16.65% yearly.
Based on estimates for the next years, TWLO will show a quite strong growth in Revenue. The Revenue will grow by 8.41% on average per year.
EPS Next Y31.79%
EPS Next 2Y22.42%
EPS Next 3Y20.4%
EPS Next 5Y16.65%
Revenue Next Year12.71%
Revenue Next 2Y10.72%
Revenue Next 3Y9.77%
Revenue Next 5Y8.41%
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 27.62 indicates a quite expensive valuation of TWLO.
The rest of the industry has a similar Price/Earnings ratio as TWLO.
The average S&P500 Price/Earnings ratio is at 26.41. TWLO is around the same levels.
TWLO is valuated rather expensively with a Price/Forward Earnings ratio of 22.88.
TWLO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TWLO to the average of the S&P500 Index (35.40), we can say TWLO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.62 | ||
| Fwd PE | 22.88 |
4.2 Price Multiples
TWLO's Enterprise Value to EBITDA ratio is in line with the industry average.
TWLO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.5 | ||
| EV/EBITDA | 51.39 |
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 20.40% in the coming years.
PEG (NY)0.87
PEG (5Y)0.31
EPS Next 2Y22.42%
EPS Next 3Y20.4%
5. Dividend
5.1 Amount
TWLO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TWLO (12/5/2025, 11:39:53 AM)
126.52
+1.3 (+1.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners89.15%
Inst Owner Change8.3%
Ins Owners0.11%
Ins Owner Change-3.61%
Market Cap19.18B
Revenue(TTM)4.90B
Net Income(TTM)67.22M
Analysts78.33
Price Target140.1 (10.73%)
Short Float %3.85%
Short Ratio2.36
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)12.27%
Min EPS beat(2)11.49%
Max EPS beat(2)13.05%
EPS beat(4)3
Avg EPS beat(4)9.41%
Min EPS beat(4)-5.36%
Max EPS beat(4)18.47%
EPS beat(8)7
Avg EPS beat(8)19.26%
EPS beat(12)11
Avg EPS beat(12)63%
EPS beat(16)15
Avg EPS beat(16)58.61%
Revenue beat(2)2
Avg Revenue beat(2)1.51%
Min Revenue beat(2)1.36%
Max Revenue beat(2)1.67%
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)0.7%
Revenue beat(12)9
Avg Revenue beat(12)0.83%
Revenue beat(16)11
Avg Revenue beat(16)1.04%
PT rev (1m)5.86%
PT rev (3m)6%
EPS NQ rev (1m)8.75%
EPS NQ rev (3m)9.16%
EPS NY rev (1m)4.7%
EPS NY rev (3m)4.47%
Revenue NQ rev (1m)2.75%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.62 | ||
| Fwd PE | 22.88 | ||
| P/S | 3.92 | ||
| P/FCF | 24.5 | ||
| P/OCF | 22.83 | ||
| P/B | 2.43 | ||
| P/tB | 7.69 | ||
| EV/EBITDA | 51.39 |
EPS(TTM)4.58
EY3.62%
EPS(NY)5.53
Fwd EY4.37%
FCF(TTM)5.16
FCFY4.08%
OCF(TTM)5.54
OCFY4.38%
SpS32.29
BVpS52.08
TBVpS16.45
PEG (NY)0.87
PEG (5Y)0.31
Graham Number73.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 0.85% | ||
| ROCE | 1.22% | ||
| ROIC | 0.97% | ||
| ROICexc | 1.33% | ||
| ROICexgc | 7.8% | ||
| OM | 2.24% | ||
| PM (TTM) | 1.37% | ||
| GM | 49.35% | ||
| FCFM | 15.99% |
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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.27 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 29% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 273.39% | ||
| Profit Quality | 1164.55% | ||
| Current Ratio | 4.68 | ||
| Quick Ratio | 4.68 | ||
| Altman-Z | 5.98 |
F-Score6
WACC8.46%
ROIC/WACC0.11
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)29.01%
EPS 3YN/A
EPS 5Y89.75%
EPS Q2Q%22.55%
EPS Next Y31.79%
EPS Next 2Y22.42%
EPS Next 3Y20.4%
EPS Next 5Y16.65%
Revenue 1Y (TTM)12.84%
Revenue growth 3Y16.19%
Revenue growth 5Y31.48%
Sales Q2Q%14.71%
Revenue Next Year12.71%
Revenue Next 2Y10.72%
Revenue Next 3Y9.77%
Revenue Next 5Y8.41%
EBIT growth 1Y205.21%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.77%
EBIT Next 3Y23.53%
EBIT Next 5YN/A
FCF growth 1Y897.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y528.37%
OCF growth 3YN/A
OCF growth 5Y119.52%
TWILIO INC - A / TWLO FAQ
Can you provide the ChartMill fundamental rating for TWILIO INC - A?
ChartMill assigns a fundamental rating of 5 / 10 to TWLO.
What is the valuation status of TWILIO INC - A (TWLO) stock?
ChartMill assigns a valuation rating of 3 / 10 to TWILIO INC - A (TWLO). This can be considered as Overvalued.
What is the profitability of TWLO stock?
TWILIO INC - A (TWLO) has a profitability rating of 3 / 10.
What is the financial health of TWILIO INC - A (TWLO) stock?
The financial health rating of TWILIO INC - A (TWLO) is 8 / 10.
What is the expected EPS growth for TWILIO INC - A (TWLO) stock?
The Earnings per Share (EPS) of TWILIO INC - A (TWLO) is expected to grow by 31.79% in the next year.