Twilio Inc Scores 48% on Small-Cap Growth Investor Model

In a recent analysis, Twilio Inc received a rating of 48% from the Small-Cap Growth Investor model. This suggests a cautious outlook for the stock due to poor performance in several key areas, including profit margin and sales growth.

Date: 12-02-2025

AI Rating: 4

Overview of Twilio Inc's Performance

Twilio Inc. (TWLO) has scored 48% according to the Small-Cap Growth Investor model. This indicates that while there are some positive aspects regarding their fundamentals, significant concerns could affect investor sentiment and stock prices.

Profit Margins and Revenue Growth

The company has failed to meet expectations in terms of profit margin and revenue growth. Their profit margin is flagged as a weak point, which signals less efficiency in converting sales into actual profit. Additionally, comparing sales and EPS growth to the previous year is also a 'FAIL,' indicating that the company's revenue growth may not be keeping pace with benchmark expectations.

Cash Flow and Debt Management

On the positive side, Twilio has a 'PASS' for cash flow from operations, highlighting that they generate adequate cash from their core business activities. Furthermore, cash and cash equivalents are consistently passing expectations, indicating a relatively healthy liquidity position.

However, the long-term debt/equity ratio is also noted as a failing indicator. This high ratio might raise concerns about the company's ability to manage debt effectively, potentially affecting investor confidence and stock prices negatively.

Conclusion

Overall, while Twilio Inc shows solid cash flow generation, its poor performance in critical areas such as profit margins and sales growth provides a risk factor for investors. This combination of mixed signals could lead to volatility in its stock price, reflecting the cautious interest from potential investors.

Stocks: TWLO