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. TWLO has a great financial health rating, but its profitability evaluates not so good. TWLO is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
TWLO had positive earnings in the past year.
In the past year TWLO had a positive cash flow from operations.
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
The Return On Assets of TWLO (-8.75%) is worse than 65.48% of its industry peers.
TWLO has a Return On Equity (-10.43%) which is in line with 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
TWLO's Gross Margin of 49.20% is fine compared to the rest of the industry. TWLO outperforms 72.62% of its industry peers.
In the last couple of years the Gross Margin of TWLO has declined.
TWLO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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
Compared to 5 years ago, TWLO has more shares outstanding
TWLO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.65 indicates that TWLO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.65, TWLO is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
TWLO has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as TWLO would need 2.77 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.77, TWLO is doing good in the industry, outperforming 65.48% of the companies in the same industry.
TWLO has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.10, TWLO is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 3.65 |
ROIC/WACCN/A
WACC10.6%
2.3 Liquidity
A Current Ratio of 6.64 indicates that TWLO has no problem at all paying its short term obligations.
TWLO has a better Current ratio (6.64) 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.
Looking at the Quick ratio, with a value of 6.64, TWLO belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.64 | ||
| Quick Ratio | 6.64 |
3. Growth
3.1 Past
TWLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1631.25%, which is quite impressive.
The Earnings Per Share has been growing by 89.60% 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 8.56% in the last year.
The Revenue has been growing by 44.91% on average over the past years. This is a very strong growth!
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.
Based on estimates for the next years, TWLO will show a quite strong growth in Revenue. The Revenue will grow by 9.60% on average per year.
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 quite expensively with a Price/Earnings ratio of 25.26.
TWLO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.06. TWLO is around the same levels.
With a Price/Forward Earnings ratio of 22.39, TWLO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TWLO is valued a bit cheaper than 60.71% of the companies in the same industry.
TWLO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 22.39 |
4.2 Price Multiples
TWLO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.99 | ||
| 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)1.97
PEG (5Y)0.28
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 (5/3/2024, 9:52:02 AM)
61.875
+0.35 (+0.58%)
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 Cap11.26B
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)
Avg EPS beat(16)
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 | 25.26 | ||
| Fwd PE | 22.39 | ||
| 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)1.97
PEG (5Y)0.28
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