1.58 USD
-0.86 (-35.25%)
1.5007 USD
-0.08 (-5.02%)
Overall TWOU gets a fundamental rating of 2 out of 10. We evaluated TWOU against 77 industry peers in the Diversified Consumer Services industry. TWOU has a bad profitability rating. Also its financial health evaluation is rather negative. TWOU is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TWOU had positive earnings in the past year.
TWOU had a positive operating cash flow in the past year.
In the past 5 years TWOU always reported negative net income.
In multiple years TWOU reported negative operating cash flow during the last 5 years.
1.2 Ratios
TWOU has a worse Return On Assets (-22.21%) than 67.69% of its industry peers.
With a Return On Equity value of -188.75%, TWOU is not doing good in the industry: 78.46% of the companies in the same industry are doing better.
TWOU has a Return On Invested Capital of 0.01%. This is comparable to the rest of the industry: TWOU outperforms 52.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -22.21% | ||
| ROE | -188.75% | ||
| ROIC | 0.01% |
ROA(3y)-16.26%
ROA(5y)-16.52%
ROE(3y)-77.58%
ROE(5y)-57.76%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TWOU has a Operating Margin (0.01%) which is in line with its industry peers.
With a decent Gross Margin value of 54.64%, TWOU is doing good in the industry, outperforming 63.08% of the companies in the same industry.
In the last couple of years the Gross Margin of TWOU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.01% | ||
| PM (TTM) | N/A | ||
| GM | 54.64% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.9%
GM growth 5Y-2.84%
2. Health
2.1 Basic Checks
TWOU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TWOU has been reduced compared to 1 year ago.
Compared to 5 years ago, TWOU has less shares outstanding
The debt/assets ratio for TWOU is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.90, we must say that TWOU is in the distress zone and has some risk of bankruptcy.
TWOU's Altman-Z score of -0.90 is on the low side compared to the rest of the industry. TWOU is outperformed by 70.77% of its industry peers.
TWOU has a Debt/Equity ratio of 5.33. This is a high value indicating a heavy dependency on external financing.
TWOU's Debt to Equity ratio of 5.33 is on the low side compared to the rest of the industry. TWOU is outperformed by 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.9 |
ROIC/WACC0
WACC5.35%
2.3 Liquidity
TWOU has a Current Ratio of 0.91. This is a bad value and indicates that TWOU is not financially healthy enough and could expect problems in meeting its short term obligations.
TWOU's Current ratio of 0.91 is on the low side compared to the rest of the industry. TWOU is outperformed by 66.15% of its industry peers.
A Quick Ratio of 0.91 indicates that TWOU may have some problems paying its short term obligations.
With a Quick ratio value of 0.91, TWOU is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37450.00% over the past year.
TWOU shows a decrease in Revenue. In the last year, the revenue decreased by -4.47%.
Measured over the past years, TWOU shows a quite strong growth in Revenue. The Revenue has been growing by 18.10% on average per year.
EPS 1Y (TTM)37450%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-6500%
Revenue 1Y (TTM)-4.47%
Revenue growth 3Y6.89%
Revenue growth 5Y18.1%
Sales Q2Q%-16.82%
3.2 Future
TWOU is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -26.83% yearly.
Based on estimates for the next years, TWOU will show a decrease in Revenue. The Revenue will decrease by -0.04% on average per year.
EPS Next Y-55.1%
EPS Next 2Y-42.67%
EPS Next 3Y-26.83%
EPS Next 5YN/A
Revenue Next Year-16.63%
Revenue Next 2Y-4.79%
Revenue Next 3Y-0.04%
Revenue Next 5YN/A
3.3 Evolution
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
A Price/Earnings ratio of 0.21 indicates a rather cheap valuation of TWOU.
Based on the Price/Earnings ratio, TWOU is valued cheaper than 98.46% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.39. TWOU is valued rather cheaply when compared to this.
The Forward Price/Earnings Ratio is negative for TWOU. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.21 | ||
| Fwd PE | N/A |
4.2 Price Multiples
83.08% of the companies in the same industry are more expensive than TWOU, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.07 |
4.3 Compensation for Growth
TWOU's earnings are expected to decrease with -26.83% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-42.67%
EPS Next 3Y-26.83%
5. Dividend
5.1 Amount
TWOU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.58
-0.86 (-35.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners223.4%
Inst Owner Change0%
Ins Owners315.07%
Ins Owner Change0%
Market Cap4.44M
Revenue(TTM)905.84M
Net Income(TTM)-318.20M
Analysts47.5
Price Target21.42 (1255.7%)
Short Float %N/A
Short RatioN/A
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)1
Avg EPS beat(2)5.46%
Min EPS beat(2)-26.16%
Max EPS beat(2)37.09%
EPS beat(4)1
Avg EPS beat(4)-34.9%
Min EPS beat(4)-139.54%
Max EPS beat(4)37.09%
EPS beat(8)3
Avg EPS beat(8)-26.22%
EPS beat(12)7
Avg EPS beat(12)-10.33%
EPS beat(16)11
Avg EPS beat(16)-1.06%
Revenue beat(2)0
Avg Revenue beat(2)-5.89%
Min Revenue beat(2)-10.94%
Max Revenue beat(2)-0.85%
Revenue beat(4)1
Avg Revenue beat(4)-4.57%
Min Revenue beat(4)-10.94%
Max Revenue beat(4)0.52%
Revenue beat(8)1
Avg Revenue beat(8)-3.85%
Revenue beat(12)1
Avg Revenue beat(12)-3.05%
Revenue beat(16)5
Avg Revenue beat(16)-1.51%
PT rev (1m)0%
PT rev (3m)2300%
EPS NQ rev (1m)12.18%
EPS NQ rev (3m)-4707.57%
EPS NY rev (1m)33523.9%
EPS NY rev (3m)2746.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.21 | ||
| Fwd PE | N/A | ||
| P/S | 0 | ||
| P/FCF | N/A | ||
| P/OCF | 0.11 | ||
| P/B | 0.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.07 |
EPS(TTM)7.47
EY472.78%
EPS(NY)-0.5
Fwd EYN/A
FCF(TTM)-1.49
FCFYN/A
OCF(TTM)14.71
OCFY931.08%
SpS322.36
BVpS59.99
TBVpS-298.4
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -22.21% | ||
| ROE | -188.75% | ||
| ROCE | 0.01% | ||
| ROIC | 0.01% | ||
| ROICexc | 0.01% | ||
| ROICexgc | 0.64% | ||
| OM | 0.01% | ||
| PM (TTM) | N/A | ||
| GM | 54.64% | ||
| FCFM | N/A |
ROA(3y)-16.26%
ROA(5y)-16.52%
ROE(3y)-77.58%
ROE(5y)-57.76%
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 3Y2.9%
GM growth 5Y-2.84%
F-Score5
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.16 | ||
| Cap/Depr | 41.4% | ||
| Cap/Sales | 5.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | -0.9 |
F-Score5
WACC5.35%
ROIC/WACC0
Cap/Depr(3y)55.38%
Cap/Depr(5y)70.03%
Cap/Sales(3y)6.81%
Cap/Sales(5y)8.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37450%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-6500%
EPS Next Y-55.1%
EPS Next 2Y-42.67%
EPS Next 3Y-26.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.47%
Revenue growth 3Y6.89%
Revenue growth 5Y18.1%
Sales Q2Q%-16.82%
Revenue Next Year-16.63%
Revenue Next 2Y-4.79%
Revenue Next 3Y-0.04%
Revenue Next 5YN/A
EBIT growth 1Y100.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.34%
EBIT Next 3Y18.37%
EBIT Next 5YN/A
FCF growth 1Y95.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y260.41%
OCF growth 3YN/A
OCF growth 5YN/A
2U Inc / TWOU FAQ
Can you provide the ChartMill fundamental rating for 2U Inc?
ChartMill assigns a fundamental rating of 2 / 10 to TWOU.
What is the valuation status for TWOU stock?
ChartMill assigns a valuation rating of 3 / 10 to 2U Inc (TWOU). This can be considered as Overvalued.
Can you provide the profitability details for 2U Inc?
2U Inc (TWOU) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for TWOU stock?
The Earnings per Share (EPS) of 2U Inc (TWOU) is expected to decline by -55.1% in the next year.