Twilio Inc. Receives Mixed Ratings from Value Strategy

A recent report highlights mixed ratings for Twilio Inc. under the Price/Sales Investor model. Key areas such as free cash flow and profit margins revealed weaknesses that could impact investor sentiment and stock price.

Date: 01-10-2024

AI Rating: 4

The report provides a comprehensive overview of Twilio Inc. (TWLO) using the Price/Sales Investor model founded on Kenneth Fisher's strategies, indicating a rating of 48%. This score suggests that while there is some alignment with the strategy, it does not meet the threshold that typically signifies strong interest in the stock.

Among the critical areas evaluated, the following points were noted:

Price/Sales Ratio: The stock failed this criterion, which is significant as a low P/S ratio is a key component for attractiveness in this strategy.
Long-Term EPS Growth Rate: The firm’s performance in this area was rated as a fail, indicating concerns regarding its earnings growth potential.
Free Cash Per Share: This too was categorized as a fail, which may lead investors to view it as a warning sign regarding liquidity and financial health.
Three Year Average Net Profit Margin: The net profit margin also failed the test, suggesting that profitability has not been robust over the past few years.

Other areas such as the Total Debt/Equity Ratio and Price/Research Ratio passed, but their positive impact is minimal given the significant weaknesses identified in the other categories. The overall impression from the report suggests a cautious outlook on TWLO’s stock, as the key failures in areas critical to long-term investment return could result in a decrease in stock price.

Stocks: TWLO