Twitter Inc (TWTR)
US90184L1026 - Common Stock
We assign a fundamental rating of 3 out of 10 to TWTR. TWTR was compared to 68 industry peers in the Interactive Media & Services industry. Both the profitability and financial health of TWTR have multiple concerns. TWTR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TWTR was profitable.
In the past year TWTR had a positive cash flow from operations.
In multiple years TWTR reported negative net income over the last 5 years.
In the past 5 years TWTR always reported a positive cash flow from operatings.
1.2 Ratios
| Industry Rank | Sector 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
1.3 Margins
TWTR's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector 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
2. Health
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.
2.2 Solvency
TWTR has an Altman-Z score of 3.99. This indicates that TWTR is financially healthy and has little risk of bankruptcy at the moment.
A Debt/Equity ratio of 0.88 indicates that TWTR is somewhat dependend on debt financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.99 |
ROIC/WACCN/A
WACC10.24%
2.3 Liquidity
A Current Ratio of 7.15 indicates that TWTR has no problem at all paying its short term obligations.
A Quick Ratio of 7.15 indicates that TWTR has no problem at all paying its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.15 | ||
| Quick Ratio | 7.15 |
3. Growth
3.1 Past
The earnings per share for TWTR have decreased strongly by -49.46% in the last year.
TWTR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.83% yearly.
The Revenue has grown by 17.46% in the past year. This is quite good.
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 growth Q2Q-140%
Revenue 1Y (TTM)17.46%
Revenue growth 3Y18.62%
Revenue growth 5Y14.95%
Revenue growth 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.
The Revenue is expected to grow by 12.65% on average over the next years. This is quite good.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 114.26, the valuation of TWTR can be described as expensive.
TWTR is valuated expensively when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 87.48 indicates a quite expensive valuation of TWTR.
The average S&P500 Price/Forward Earnings ratio is at 21.60. TWTR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.26 | ||
| Fwd PE | 87.48 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 121.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.61
PEG (5Y)12.95
EPS Next 2Y-16%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
TWTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Twitter Inc
NYSE:TWTR (10/27/2022, 7:08:24 PM)
After market: 53.86 +0.16 (+0.3%)53.7
+0.35 (+0.66%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.09B
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 114.26 | ||
| Fwd PE | 87.48 | ||
| 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)3.61
PEG (5Y)12.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.82% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | -5.38% | ||
| PM (TTM) | -2.14% | ||
| GM | N/A | ||
| 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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.15 | ||
| Quick Ratio | 7.15 | ||
| 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)-49.46%
EPS 3Y0.78%
EPS 5Y
EPS growth Q2Q
EPS Next Y31.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.46%
Revenue growth 3Y18.62%
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