Twitter Inc

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TWTR : NYSE : Technology
$16.96 up 0.33 | 1.98%
Today's Range: 16.44 - 17.05
Avg. Daily Volume: 1.68716E7
08/23/17 - 4:00 PM ET

Financial Analysis


TWITTER INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. TWITTER INC is extremely liquid. Currently, the Quick Ratio is 9.31 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.77% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)573.86601.96
EBITDA ($mil)64.486.91
EBIT ($mil)-38.59-86.38
Net Income ($mil)-116.49-107.22


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)4079.913588.16
Total Assets ($mil)6963.16616.81
Total Debt ($mil)1746.011620.73
Equity ($mil)4728.94556.85


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin79.9680.94
EBITDA Margin11.231.14
Operating Margin-6.72-14.35
Sales Turnover0.350.37
Return on Assets-6.43-6.17
Return on Equity-9.47-8.97
Debt Q2 FY17 Q2 FY16
Current Ratio9.799.75
Debt/Capital0.270.26
Interest Expense26.424.93
Interest Coverage-1.46-3.46


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)736.47706.3
Div / share0.00.0
EPS-0.16-0.15
Book value / share6.426.45
Institutional Own % n/a n/a
Avg Daily Volume1.6729797E71.759154E7

Valuation


HOLD. 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 2.47 indicates a discount versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 9.93. 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 40.84   TWTR 15.01 Peers 36.36

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.

 

Discount. 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 significant discount 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 46.68 Peers 21.21   TWTR NA Peers 0.33

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 2.47 Peers 9.93   TWTR -5.00 Peers 33.86

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 4.76 Peers 10.14   TWTR -0.85 Peers 32.57

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

TWTR significantly trails its peers on the basis of sales growth

 

 

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