TWILIO INC Shows Weak Performance in Guru Models

The report reveals that Twilio Inc. (TWLO) lacks strong fundamentals according to multiple guru investment strategies, notably showing low ratings in key areas including EPS growth and free cash flow. This indicates potential challenges for stock performance moving forward.

Date: 16-10-2024

AI Rating: 4

The report on Twilio Inc. (TWLO) indicates several concerning areas in its financial performance based on the Price/Sales Investor model. The overall rating is 48%, which is below the typical interest threshold of 80% for the strategy.

Key areas of concern include:

Long-Term EPS Growth Rate: The analysis shows this metric has a FAIL, indicating that the company's earnings per share growth is not meeting expectations or showing promising future growth.
Free Cash Flow (FCF): TWLO has also FAILED the free cash flow test, signaling potential liquidity issues or insufficient cash generation relative to needs.
Three-Year Average Net Profit Margin: Another red flag is the FAIL in net profit margin, which suggests that the company may be struggling with profitability over time.

Although the stock has passed the Total Debt/Equity Ratio and the Price/Research Ratio tests, the failures in essential areas such as long-term EPS growth, free cash flow, and net profit margin could weigh heavily on investor confidence and impact stock prices negatively.

In summary, Twilio Inc.'s reported weaknesses in critical financial metrics may lead to a bearish outlook, influencing the stock price adversely given the lack of strong fundamentals that typically attract investors.

Stocks: TWLO