Twitter Inc (TWTR) Fundamental Analysis & Valuation

NYSE:TWTR • US90184L1026

Current stock price

53.7 USD
+0.35 (+0.66%)
At close:
53.86 USD
+0.16 (+0.3%)
After Hours:

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

1

1. TWTR Profitability Analysis

1.1 Basic Checks

  • TWTR had positive earnings in the past year.
  • In the past year TWTR had a positive cash flow from operations.
TWTR Yearly Net Income VS EBIT VS OCF VS FCFTWTR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 500M -500M 1B -1B

1.2 Ratios

Industry RankSector Rank
ROA -0.82%
ROE N/A
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
TWTR Yearly ROA, ROE, ROICTWTR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 10 -10

1.3 Margins

  • TWTR's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM -5.38%
PM (TTM) -2.14%
GM N/A
OM growth 3Y-15.56%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
TWTR Yearly Profit, Operating, Gross MarginsTWTR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 20 -20 40 60

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3

2. TWTR Health Analysis

2.1 Basic Checks

  • TWTR does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • Compared to 1 year ago, TWTR has more shares outstanding
  • Compared to 1 year ago, TWTR has a worse debt to assets ratio.
TWTR Yearly Shares OutstandingTWTR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 200M 400M 600M
TWTR Yearly Total Debt VS Total AssetsTWTR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 5B 10B

2.2 Solvency

  • An Altman-Z score of 3.99 indicates that TWTR is not in any danger for bankruptcy at the moment.
  • TWTR has a Debt/Equity ratio of 0.88. This is a neutral value indicating TWTR is somewhat dependend on debt financing.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF N/A
Altman-Z 3.99
ROIC/WACCN/A
WACC10.24%
TWTR Yearly LT Debt VS Equity VS FCFTWTR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 7.15 indicates that TWTR has no problem at all paying its short term obligations.
  • TWTR has a Quick Ratio of 7.15. This indicates that TWTR is financially healthy and has no problem in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 7.15
Quick Ratio 7.15
TWTR Yearly Current Assets VS Current LiabilitesTWTR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2B 4B 6B 8B

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

6

3. TWTR Growth Analysis

3.1 Past

  • TWTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -49.46%.
  • TWTR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.83% yearly.
  • Looking at the last year, TWTR shows a quite strong growth in Revenue. The Revenue has grown by 17.46% in the last year.
  • The Revenue has been growing by 14.95% on average over the past years. This is quite good.
EPS 1Y (TTM)-49.46%
EPS 3Y0.78%
EPS 5Y8.83%
EPS Q2Q%-140%
Revenue 1Y (TTM)17.46%
Revenue growth 3Y18.62%
Revenue growth 5Y14.95%
Sales Q2Q%-1.16%

3.2 Future

  • TWTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.05% yearly.
  • Based on estimates for the next years, TWTR will show a quite strong growth in Revenue. The Revenue will grow by 12.65% on average per year.
EPS Next Y31.67%
EPS Next 2Y-16%
EPS Next 3Y10.74%
EPS Next 5Y15.05%
Revenue Next Year3.03%
Revenue Next 2Y8.37%
Revenue Next 3Y11.35%
Revenue Next 5Y12.65%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
TWTR Yearly Revenue VS EstimatesTWTR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B
TWTR Yearly EPS VS EstimatesTWTR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 2

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0

4. TWTR Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 114.26 indicates a quite expensive valuation of TWTR.
  • The average S&P500 Price/Earnings ratio is at 26.77. TWTR is valued rather expensively when compared to this.
  • TWTR is valuated quite expensively with a Price/Forward Earnings ratio of 87.48.
  • TWTR is valuated expensively when we compare the Price/Forward Earnings ratio to 21.75, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 114.26
Fwd PE 87.48
TWTR Price Earnings VS Forward Price EarningsTWTR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 121.33
TWTR Per share dataTWTR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TWTR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.61
PEG (5Y)12.95
EPS Next 2Y-16%
EPS Next 3Y10.74%

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

0

5. TWTR Dividend Analysis

5.1 Amount

  • TWTR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TWTR Fundamentals: All Metrics, Ratios and Statistics

Twitter Inc

NYSE:TWTR (10/27/2022, 8:08:24 PM)

After market: 53.86 +0.16 (+0.3%)

53.7

+0.35 (+0.66%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Industry Strength14.29
Industry Growth73.91
Earnings (Last)07-22
Earnings (Next)11-15
Inst Owners0%
Inst Owner Change0%
Ins Owners3.95%
Ins Owner Change0%
Market Cap41.09B
Revenue(TTM)5.23B
Net Income(TTM)-111.78M
Analysts57.37
Price Target44.96 (-16.28%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-64.14%
Min EPS beat(2)-157.79%
Max EPS beat(2)29.51%
EPS beat(4)2
Avg EPS beat(4)-28.5%
Min EPS beat(4)-157.79%
Max EPS beat(4)29.51%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-8.09%
Min Revenue beat(2)-12.31%
Max Revenue beat(2)-3.87%
Revenue beat(4)0
Avg Revenue beat(4)-5.2%
Min Revenue beat(4)-12.31%
Max Revenue beat(4)-2.04%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 114.26
Fwd PE 87.48
P/S 7.86
P/FCF N/A
P/OCF 2517.23
P/B 6.93
P/tB 9.05
EV/EBITDA 121.33
EPS(TTM)0.47
EY0.88%
EPS(NY)0.61
Fwd EY1.14%
FCF(TTM)-1.11
FCFYN/A
OCF(TTM)0.02
OCFY0.04%
SpS6.83
BVpS7.75
TBVpS5.94
PEG (NY)3.61
PEG (5Y)12.95
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA -0.82%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM -5.38%
PM (TTM) -2.14%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 3Y-15.56%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 141.84%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 7.15
Quick Ratio 7.15
Altman-Z 3.99
F-Score5
WACC10.24%
ROIC/WACCN/A
Cap/Depr(3y)159.4%
Cap/Depr(5y)126.5%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-49.46%
EPS 3Y0.78%
EPS 5Y8.83%
EPS Q2Q%-140%
EPS Next Y31.67%
EPS Next 2Y-16%
EPS Next 3Y10.74%
EPS Next 5Y15.05%
Revenue 1Y (TTM)17.46%
Revenue growth 3Y18.62%
Revenue growth 5Y14.95%
Sales Q2Q%-1.16%
Revenue Next Year3.03%
Revenue Next 2Y8.37%
Revenue Next 3Y11.35%
Revenue Next 5Y12.65%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-288.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-98.46%
OCF growth 3Y-22.13%
OCF growth 5Y-3.68%

Twitter Inc / TWTR Fundamental Analysis FAQ

What is the fundamental rating for TWTR stock?

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


What is the valuation status for TWTR stock?

ChartMill assigns a valuation rating of 0 / 10 to Twitter Inc (TWTR). This can be considered as Overvalued.


What is the profitability of TWTR stock?

Twitter Inc (TWTR) has a profitability rating of 4 / 10.


Can you provide the financial health for TWTR stock?

The financial health rating of Twitter Inc (TWTR) is 8 / 10.


What is the earnings growth outlook for Twitter Inc?

The Earnings per Share (EPS) of Twitter Inc (TWTR) is expected to grow by 31.67% in the next year.