TWILIO INC - A (TWLO)
US90138F1021 - Common Stock
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 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.
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
TWLO has a Return On Assets of -8.75%. This is in the lower half of the industry: TWLO underperforms 65.48% of its industry peers.
TWLO's Return On Equity of -10.43% is in line compared to the rest of the industry. TWLO outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.75% | ||
| ROE | -10.43% | ||
| ROIC | N/A |
ROA(3y)-8.68%
ROA(5y)-7.44%
ROE(3y)-10.31%
ROE(5y)-8.79%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Gross Margin value of 49.20%, TWLO is doing good in the industry, outperforming 72.62% of the companies in the same industry.
TWLO's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for TWLO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 49.2% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.81%
GM growth 5Y-1.74%
2. Health
2.1 Basic Checks
TWLO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, TWLO has less shares outstanding
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 3.41. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
TWLO has a better Altman-Z score (3.41) than 69.05% of its industry peers.
TWLO has a debt to FCF ratio of 2.75. This is a good value and a sign of high solvency as TWLO would need 2.75 years to pay back of all of its debts.
TWLO's Debt to FCF ratio of 2.75 is fine compared to the rest of the industry. TWLO outperforms 65.48% of its industry peers.
TWLO has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TWLO (0.10) is better than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.41 |
ROIC/WACCN/A
WACC10.75%
2.3 Liquidity
TWLO has a Current Ratio of 6.64. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TWLO (6.64) is better than 96.43% of its industry peers.
TWLO has a Quick Ratio of 6.64. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
TWLO has a Quick ratio of 6.64. This is amongst the best in the industry. TWLO outperforms 96.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.64 | ||
| Quick Ratio | 6.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1631.25% over the past year.
The Earnings Per Share has been growing by 89.60% on average over the past years. This is a very strong growth
The Revenue has grown by 8.56% 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 44.91% yearly.
EPS 1Y (TTM)1631.25%
EPS 3Y120.03%
EPS 5Y89.6%
EPS growth Q2Q290.91%
Revenue 1Y (TTM)8.56%
Revenue growth 3Y33.1%
Revenue growth 5Y44.91%
Revenue growth Q2Q5.01%
3.2 Future
TWLO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.10% yearly.
The Revenue is expected to grow by 9.60% on average over the next years. This is quite good.
EPS Next Y12.81%
EPS Next 2Y16.06%
EPS Next 3Y16.65%
EPS Next 5Y24.1%
Revenue Next Year6.04%
Revenue Next 2Y7.25%
Revenue Next 3Y8.16%
Revenue Next 5Y9.6%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
TWLO is valuated rather expensively with a Price/Earnings ratio of 23.92.
TWLO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 24.95. TWLO is around the same levels.
Based on the Price/Forward Earnings ratio of 21.21, the valuation of TWLO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TWLO indicates a somewhat cheap valuation: TWLO is cheaper than 63.10% of the companies listed in the same industry.
TWLO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 21.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TWLO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.35 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as TWLO's earnings are expected to grow with 16.65% in the coming years.
PEG (NY)1.87
PEG (5Y)0.27
EPS Next 2Y16.06%
EPS Next 3Y16.65%
5. Dividend
5.1 Amount
No dividends for TWLO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TWILIO INC - A
NYSE:TWLO (4/22/2024, 7:04:00 PM)
After market: 58.2 -0.41 (-0.7%)58.61
+1.06 (+1.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 21.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.87
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.75% | ||
| ROE | -10.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 49.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.64 | ||
| Quick Ratio | 6.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1631.25%
EPS 3Y120.03%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.56%
Revenue growth 3Y33.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y