1.58 USD
-0.86 (-35.25%)
1.5007 USD
-0.08 (-5.02%)
Taking everything into account, TWOU scores 2 out of 10 in our fundamental rating. TWOU was compared to 77 industry peers in the Diversified Consumer Services industry. TWOU has a bad profitability rating. Also its financial health evaluation is rather negative. TWOU has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
TWOU had positive earnings in the past year.
In the past year TWOU had a positive cash flow from operations.
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
The Return On Assets of TWOU (-22.21%) is worse 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.
With a Return On Invested Capital value of 0.01%, TWOU perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
| 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
The Operating Margin of TWOU (0.01%) is comparable to the rest of the industry.
TWOU's Gross Margin of 54.64% is fine compared to the rest of the industry. TWOU outperforms 63.08% of its industry peers.
TWOU's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, TWOU has less shares outstanding
TWOU has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TWOU has a worse debt to assets ratio.
2.2 Solvency
TWOU has an Altman-Z score of -0.90. This is a bad value and indicates that TWOU is not financially healthy and even has some risk of bankruptcy.
TWOU has a worse Altman-Z score (-0.90) than 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 has a worse Debt to Equity ratio (5.33) than 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.
Looking at the Current ratio, with a value of 0.91, TWOU is doing worse than 66.15% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that TWOU may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.91, TWOU is doing worse than 66.15% of the companies in the same industry.
| 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.
The Revenue has decreased by -4.47% in the past year.
TWOU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.10% yearly.
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
The Earnings Per Share is expected to decrease by -26.83% on average over the next years. This is quite bad
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
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
With a Price/Earnings ratio of 0.21, the valuation of TWOU can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of TWOU indicates a rather cheap valuation: TWOU is cheaper than 98.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, TWOU is valued rather cheaply.
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
TWOU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TWOU is cheaper than 83.08% of the companies in the same industry.
| 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
No dividends for TWOU!.
| 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.