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Twilio (TWLO) Stock Analysis

This is a peer-relative look at Twilio (TWLO): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Twilio (TWLO)
Profile ItemTWLO
NameTwilio Inc. Class A Common Stock
Country/RegionUnited States
GICS SectorInformation Technology
GICS Industry GroupSoftware & Services
GICS IndustryIT Services
GICS Sub-IndustryInternet Services & Infrastructure
Market Capitalization31.26 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJune 23, 2016
Security TypeCommon Stock

Price Performance

Cumulative Growth

TWLO
GSPC
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Twilio (TWLO) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Twilio (TWLO) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Twilio (TWLO) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Twilio (TWLO) metric values compared with Software & Services industry-group medians
MetricCurrent stock: TWLOIndustry group median
Total Return (1Y)61.15%-3.00%
Total Return (3Y, Annualized)54.31%8.28%
Total Return (5Y, Annualized)-7.91%-7.91%

Risk Profile

Drawdown History

TWLO
GSPC
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Twilio (TWLO) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Twilio (TWLO) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Twilio (TWLO) metric values compared with Software & Services industry-group medians
MetricCurrent stock: TWLOIndustry group median
Volatility (1Y, Annualized)63.75%61.69%
Beta (5Y)1.481.06
Max Drawdown (5Y)-86.25%-76.52%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. TWLO is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Twilio (TWLO) metric values compared with Software & Services industry-group medians
MetricCurrent stock: TWLOIndustry group median
Sharpe Ratio (1Y)0.89-0.13
Sortino Ratio (1Y)1.49-0.19

Profitability

ROE (TTM)

Twilio (TWLO) posts ROE of 14.92%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

TWLO

Software & Services industry group

14.92%

Group distribution
Max
53.85%
Q3
17.90%
TWLO
14.92%
Median
6.59%
Q1
-9.59%
Min
-50.52%
Largest peers
ORCL
41.19%
PLTR
40.91%
IBM
34.77%
MSFT
34.22%
SAP
18.18%
TWLO
14.92%
PANW
1.74%
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Where Twilio (TWLO) stands on ROE within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Twilio (TWLO) keeps 21.82% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

TWLO

Software & Services industry group

21.82%

Group distribution
Max
41.17%
TWLO
21.82%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
Largest peers
PLTR
50.34%
MSFT
41.17%
ORCL
26.36%
TWLO
21.82%
SAP
20.41%
IBM
15.99%
PANW
2.67%
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Where Twilio (TWLO) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Twilio (TWLO) turns 9.53% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

TWLO

Software & Services industry group

9.53%

Group distribution
Max
46.89%
Q3
17.64%
TWLO
9.53%
Median
8.73%
Q1
-2.13%
Min
-30.45%
Largest peers
MSFT
49.76%
PLTR
46.89%
ORCL
35.63%
SAP
29.50%
IBM
16.97%
TWLO
9.53%
PANW
5.40%
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Where Twilio (TWLO) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Twilio (TWLO) metric values compared with Software & Services industry-group medians
MetricCurrent stock: TWLOIndustry group median
ROE (TTM)14.92%6.59%
ROA (TTM)2.69%2.45%
Net Margin (TTM)21.82%4.63%
Operating Margin (TTM)9.53%8.73%
Gross Margin (TTM)48.61%70.07%

Growth

Revenue Growth

Twilio (TWLO) grew revenue 13.66%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Twilio (TWLO): Revenue Growth across different time periods, set against Software & Services industry-group medians.

EPS Growth

No usable EPS growth is available for Twilio (TWLO) this period, so the earnings-momentum read is skipped.

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Twilio (TWLO) doesn't report EPS Growth this period; the bars show the Software & Services industry-group medians on their own.

Growth Metrics

Twilio (TWLO) metric values compared with Software & Services industry-group medians
MetricCurrent stock: TWLOIndustry group median
Revenue Growth (YoY)13.66%14.22%
Revenue Growth (3Y CAGR)9.82%13.52%
EPS Growth (YoY)--7.85%
EPS Growth (3Y CAGR)--18.19%

Financial Strength

Current Ratio (MRQ)

Twilio (TWLO) has current ratio of 4.47, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.

TWLO

Software & Services industry group

4.47

Group distribution
Max
5.11
TWLO
4.47
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03
Largest peers
PLTR
7.10
TWLO
4.47
MSFT
1.23
ORCL
1.17
SAP
1.16
PANW
0.87
IBM
0.86
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Where Twilio (TWLO) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Twilio (TWLO) has debt-to-equity ratio of 0.12, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

TWLO

Software & Services industry group

0.12

Group distribution
Max
2.52
Q3
1.13
Median
0.40
TWLO
0.12
Q1
0.07
Min
0.00
Largest peers
ORCL
2.52
IBM
1.85
MSFT
0.28
SAP
0.23
TWLO
0.12
PANW
0.09
PLTR
0.02
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Where Twilio (TWLO) stands on debt-to-equity ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Twilio (TWLO) metric values compared with Software & Services industry-group medians
MetricCurrent stock: TWLOIndustry group median
Current Ratio (MRQ)4.471.67
Debt / Equity (MRQ)0.120.40
Net Debt / EBITDA-3.130.17

Dividends

Dividend Yield (TTM)

Twilio (TWLO) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

TWLO

Software & Services industry group

0.00%

Group distribution
TWLO
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
2.73%
ORCL
1.74%
SAP
1.03%
MSFT
0.69%
TWLO
0.00%
PLTR
0.00%
PANW
0.00%
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Where Twilio (TWLO) stands on dividend yield within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Twilio (TWLO) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

TWLO

Software & Services industry group

0.00%

Group distribution
TWLO
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
57.51%
SAP
36.45%
ORCL
31.35%
MSFT
19.00%
TWLO
0.00%
PLTR
0.00%
PANW
0.00%
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Where Twilio (TWLO) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Twilio (TWLO) metric values compared with Software & Services industry-group medians
MetricCurrent stock: TWLOIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Twilio (TWLO) trades at P/E ratio of 25.38, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

TWLO

Software & Services industry group

25.38

Group distribution
Max
112.94
Q3
60.32
Median
32.91
TWLO
25.38
Q1
18.77
Min
6.69
Largest peers
PANW
784.60
PLTR
112.94
SAP
29.07
MSFT
27.69
TWLO
25.38
IBM
20.90
ORCL
18.20
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Where Twilio (TWLO) stands on P/E ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Twilio (TWLO) trades at 5.36 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

TWLO

Software & Services industry group

5.36

Group distribution
Max
17.91
Q3
8.78
TWLO
5.36
Median
4.25
Q1
2.23
Min
0.02
Largest peers
PLTR
53.02
PANW
22.37
MSFT
11.37
SAP
6.84
TWLO
5.36
ORCL
5.04
IBM
3.31
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Where Twilio (TWLO) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Twilio (TWLO) trades at 3.41 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

TWLO

Software & Services industry group

3.41

Group distribution
Max
16.63
Q3
8.50
Median
4.30
TWLO
3.41
Q1
1.92
Min
-3.90
Largest peers
SAP
73.25
PLTR
34.41
PANW
9.30
MSFT
8.38
IBM
6.52
ORCL
5.68
TWLO
3.41
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Where Twilio (TWLO) stands on P/B ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Twilio (TWLO) metric values compared with Software & Services industry-group medians
MetricCurrent stock: TWLOIndustry group median
P/E Ratio (TTM)25.3832.91
P/S Ratio (TTM)5.364.25
P/B Ratio (MRQ)3.414.30
Free Cash Flow Yield (TTM)3.45%3.98%