TWILIO INC - A (TWLO) Fundamental Analysis & Valuation

NYSE:TWLO • US90138F1021

Current stock price

124.5 USD
-1.01 (-0.8%)
At close:
123.6 USD
-0.9 (-0.72%)
After Hours:

This TWLO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. TWLO Profitability Analysis

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 4 of the past 5 years.
  • In multiple years TWLO reported negative operating cash flow during the last 5 years.
TWLO Yearly Net Income VS EBIT VS OCF VS FCFTWLO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B -1B

1.2 Ratios

  • With a Return On Assets value of 0.35%, TWLO perfoms like the industry average, outperforming 50.57% of the companies in the same industry.
  • TWLO's Return On Equity of 0.43% is in line compared to the rest of the industry. TWLO outperforms 52.87% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.17%, TWLO is in line with its industry, outperforming 50.57% of the companies in the same industry.
Industry RankSector Rank
ROA 0.35%
ROE 0.43%
ROIC 1.17%
ROA(3y)-3.17%
ROA(5y)-5.36%
ROE(3y)-3.79%
ROE(5y)-6.38%
ROIC(3y)N/A
ROIC(5y)N/A
TWLO Yearly ROA, ROE, ROICTWLO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -5 -10 -15 -20 -25

1.3 Margins

  • The Profit Margin of TWLO (0.67%) is comparable to the rest of the industry.
  • TWLO's Operating Margin of 3.35% is in line compared to the rest of the industry. TWLO outperforms 48.28% of its industry peers.
  • TWLO has a Gross Margin of 48.92%. This is in the better half of the industry: TWLO outperforms 72.41% 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 RankSector Rank
OM 3.35%
PM (TTM) 0.67%
GM 48.92%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.06%
GM growth 5Y-1.21%
TWLO Yearly Profit, Operating, Gross MarginsTWLO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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8

2. TWLO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TWLO is destroying value.
  • The number of shares outstanding for TWLO remains at a similar level compared to 1 year ago.
  • TWLO has less shares outstanding than it did 5 years ago.
  • TWLO has a worse debt/assets ratio than last year.
TWLO Yearly Shares OutstandingTWLO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
TWLO Yearly Total Debt VS Total AssetsTWLO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • TWLO has an Altman-Z score of 5.56. This indicates that TWLO is financially healthy and has little risk of bankruptcy at the moment.
  • TWLO's Altman-Z score of 5.56 is amongst the best of the industry. TWLO outperforms 83.91% of its industry peers.
  • TWLO has a debt to FCF ratio of 1.05. This is a very positive value and a sign of high solvency as it would only need 1.05 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.05, TWLO is in the better half of the industry, outperforming 78.16% of the companies in the same industry.
  • A Debt/Equity ratio of 0.13 indicates that TWLO is not too dependend on debt financing.
  • TWLO has a Debt to Equity ratio of 0.13. This is in the better half of the industry: TWLO outperforms 67.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.05
Altman-Z 5.56
ROIC/WACC0.13
WACC8.75%
TWLO Yearly LT Debt VS Equity VS FCFTWLO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • TWLO has a Current Ratio of 4.03. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
  • TWLO's Current ratio of 4.03 is amongst the best of the industry. TWLO outperforms 83.91% of its industry peers.
  • TWLO has a Quick Ratio of 4.03. This indicates that TWLO is financially healthy and has no problem in meeting its short term obligations.
  • TWLO's Quick ratio of 4.03 is amongst the best of the industry. TWLO outperforms 83.91% of its industry peers.
Industry RankSector Rank
Current Ratio 4.03
Quick Ratio 4.03
TWLO Yearly Current Assets VS Current LiabilitesTWLO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. TWLO Growth Analysis

3.1 Past

  • TWLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.06%, which is quite impressive.
  • Measured over the past years, TWLO shows a very strong growth in Earnings Per Share. The EPS has been growing by 84.45% on average per year.
  • TWLO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.66%.
  • TWLO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.53% yearly.
EPS 1Y (TTM)33.06%
EPS 3YN/A
EPS 5Y84.45%
EPS Q2Q%33%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y9.82%
Revenue growth 5Y23.53%
Sales Q2Q%14.32%

3.2 Future

  • Based on estimates for the next years, TWLO will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.16% on average per year.
  • The Revenue is expected to grow by 8.50% on average over the next years. This is quite good.
EPS Next Y12.44%
EPS Next 2Y15.01%
EPS Next 3Y15.06%
EPS Next 5Y14.16%
Revenue Next Year13.04%
Revenue Next 2Y10.69%
Revenue Next 3Y9.81%
Revenue Next 5Y8.5%

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.
TWLO Yearly Revenue VS EstimatesTWLO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B
TWLO Yearly EPS VS EstimatesTWLO Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0 5 10

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2

4. TWLO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 25.36, the valuation of TWLO can be described as expensive.
  • The rest of the industry has a similar Price/Earnings ratio as TWLO.
  • TWLO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.70, which is the current average of the S&P500 Index.
  • TWLO is valuated rather expensively with a Price/Forward Earnings ratio of 22.55.
  • 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 (23.84), we can say TWLO is valued inline with the index average.
Industry RankSector Rank
PE 25.36
Fwd PE 22.55
TWLO Price Earnings VS Forward Price EarningsTWLO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF 19.95
EV/EBITDA 43.15
TWLO Per share dataTWLO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • TWLO's earnings are expected to grow with 15.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.04
PEG (5Y)0.3
EPS Next 2Y15.01%
EPS Next 3Y15.06%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. TWLO Dividend Analysis

5.1 Amount

  • No dividends for TWLO!.
Industry RankSector Rank
Dividend Yield 0%

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TWLO Fundamentals: All Metrics, Ratios and Statistics

TWILIO INC - A

NYSE:TWLO (3/13/2026, 8:04:00 PM)

After market: 123.6 -0.9 (-0.72%)

124.5

-1.01 (-0.8%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-12
Earnings (Next)04-29
Inst Owners93.67%
Inst Owner Change-2.52%
Ins Owners0.13%
Ins Owner Change1.12%
Market Cap18.86B
Revenue(TTM)5.07B
Net Income(TTM)33.83M
Analysts77.78
Price Target145.56 (16.92%)
Short Float %4.08%
Short Ratio2.26
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)9.26%
Min EPS beat(2)5.47%
Max EPS beat(2)13.05%
EPS beat(4)4
Avg EPS beat(4)12.12%
Min EPS beat(4)5.47%
Max EPS beat(4)18.47%
EPS beat(8)7
Avg EPS beat(8)14.26%
EPS beat(12)11
Avg EPS beat(12)34.8%
EPS beat(16)15
Avg EPS beat(16)58.37%
Revenue beat(2)2
Avg Revenue beat(2)1.58%
Min Revenue beat(2)1.48%
Max Revenue beat(2)1.67%
Revenue beat(4)4
Avg Revenue beat(4)1.35%
Min Revenue beat(4)0.9%
Max Revenue beat(4)1.67%
Revenue beat(8)6
Avg Revenue beat(8)0.74%
Revenue beat(12)9
Avg Revenue beat(12)0.91%
Revenue beat(16)11
Avg Revenue beat(16)0.65%
PT rev (1m)-3.37%
PT rev (3m)2.99%
EPS NQ rev (1m)3.59%
EPS NQ rev (3m)3.53%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)3.96%
Revenue NQ rev (3m)3.72%
Revenue NY rev (1m)3.91%
Revenue NY rev (3m)3.93%
Valuation
Industry RankSector Rank
PE 25.36
Fwd PE 22.55
P/S 3.72
P/FCF 19.95
P/OCF 18.8
P/B 2.41
P/tB 7.9
EV/EBITDA 43.15
EPS(TTM)4.91
EY3.94%
EPS(NY)5.52
Fwd EY4.43%
FCF(TTM)6.24
FCFY5.01%
OCF(TTM)6.62
OCFY5.32%
SpS33.44
BVpS51.62
TBVpS15.76
PEG (NY)2.04
PEG (5Y)0.3
Graham Number75.52
Profitability
Industry RankSector Rank
ROA 0.35%
ROE 0.43%
ROCE 1.91%
ROIC 1.17%
ROICexc 1.62%
ROICexgc 10.63%
OM 3.35%
PM (TTM) 0.67%
GM 48.92%
FCFM 18.66%
ROA(3y)-3.17%
ROA(5y)-5.36%
ROE(3y)-3.79%
ROE(5y)-6.38%
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 3Y1.06%
GM growth 5Y-1.21%
F-Score6
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.05
Debt/EBITDA 2.72
Cap/Depr 29.58%
Cap/Sales 1.14%
Interest Coverage 250
Cash Conversion 274.85%
Profit Quality 2794.31%
Current Ratio 4.03
Quick Ratio 4.03
Altman-Z 5.56
F-Score6
WACC8.75%
ROIC/WACC0.13
Cap/Depr(3y)25.38%
Cap/Depr(5y)27.94%
Cap/Sales(3y)1.23%
Cap/Sales(5y)1.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.06%
EPS 3YN/A
EPS 5Y84.45%
EPS Q2Q%33%
EPS Next Y12.44%
EPS Next 2Y15.01%
EPS Next 3Y15.06%
EPS Next 5Y14.16%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y9.82%
Revenue growth 5Y23.53%
Sales Q2Q%14.32%
Revenue Next Year13.04%
Revenue Next 2Y10.69%
Revenue Next 3Y9.81%
Revenue Next 5Y8.5%
EBIT growth 1Y519.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year31.63%
EBIT Next 3Y18.35%
EBIT Next 5Y6.77%
FCF growth 1Y43.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y40.07%
OCF growth 3YN/A
OCF growth 5Y98.38%

TWILIO INC - A / TWLO Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for TWILIO INC - A?

ChartMill assigns a fundamental rating of 5 / 10 to TWLO.


Can you provide the valuation status for TWILIO INC - A?

ChartMill assigns a valuation rating of 2 / 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.


Can you provide the financial health for TWLO stock?

The financial health rating of TWILIO INC - A (TWLO) is 8 / 10.