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Twitter Inc
TWTR : NYSE : Technology
$14.62 | %
Today's Range: 14.32 - 14.93
Avg. Daily Volume: 24,158,200
04/29/16 - 4:00 PM ET

Financial Analysis


TWITTER INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. TWITTER INC is extremely liquid. Currently, the Quick Ratio is 9.82 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 21.43% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)594.52435.94
EBITDA ($mil)29.55-78.75
EBIT ($mil)-59.07-146.62
Net Income ($mil)-79.73-162.44


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)3576.413557.21
Total Assets ($mil)6476.175643.42
Total Debt ($mil)1602.681600.75
Equity ($mil)4477.493687.1


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin80.7382.06
EBITDA Margin4.97-18.06
Operating Margin-9.94-33.63
Sales Turnover0.370.28
Return on Assets-6.76-10.77
Return on Equity-9.78-16.48
Debt Q1 FY16 Q1 FY15
Current Ratio10.3810.64
Debt/Capital0.260.3
Interest Expense24.8924.32
Interest Coverage-2.37-6.03


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)694.13653.14
Div / share0.00.0
EPS-0.12-0.25
Book value / share6.455.65
Institutional Own % n/a n/a
Avg Daily Volume2.3991092E71.8885068E7

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 2.27 indicates a discount versus the S&P 500 average of 2.74 and a significant discount versus the industry average of 5.04. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, TWITTER INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TWTR NM Peers 37.64   TWTR 22.69 Peers 23.76

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

TWTR's P/E is negative making this valuation measure meaningless.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TWTR is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TWTR 20.91 Peers 18.85   TWTR NA Peers 0.41

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

TWTR is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TWTR 2.27 Peers 5.04   TWTR 32.66 Peers 44.30

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TWTR is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TWTR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TWTR 4.28 Peers 8.58   TWTR 49.61 Peers 28.85

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TWTR is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

TWTR has a sales growth rate that significantly exceeds its peers.

 

 

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