NYSE:TWTR

Stock Analysis Report

Executive Summary

Twitter, Inc. operates as a platform for public self-expression and conversation in real time.

Rewards

PE ratio (14.6x) is below the US market (18.4x)

Revenue is forecast to grow 11.55% per year

Earnings grew by 53.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -21.7% per year for the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Facebook

NasdaqGS:FB

Share Price & News

How has Twitter's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TWTR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.7%

TWTR

1.2%

US Interactive Media and Services

0.8%

US Market


1 Year Return

-14.9%

TWTR

23.8%

US Interactive Media and Services

17.8%

US Market

Return vs Industry: TWTR underperformed the US Interactive Media and Services industry which returned 23.8% over the past year.

Return vs Market: TWTR underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

TWTRIndustryMarket
7 Day1.7%1.2%0.8%
30 Day5.2%3.1%1.8%
90 Day-28.3%5.4%4.1%
1 Year-14.9%-14.9%23.9%23.8%20.4%17.8%
3 Year62.6%62.6%54.6%54.5%45.9%36.4%
5 Year-16.8%-16.8%119.9%119.4%68.1%49.6%

Price Volatility Vs. Market

How volatile is Twitter's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Twitter undervalued compared to its fair value and its price relative to the market?

14.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TWTR ($30.55) is trading above our estimate of fair value ($25.1)

Significantly Below Fair Value: TWTR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TWTR is good value based on its PE Ratio (14.6x) compared to the Interactive Media and Services industry average (26.3x).

PE vs Market: TWTR is good value based on its PE Ratio (14.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: TWTR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TWTR is overvalued based on its PB Ratio (2.8x) compared to the US Interactive Media and Services industry average (2.8x).


Next Steps

Future Growth

How is Twitter forecast to perform in the next 1 to 3 years based on estimates from 39 analysts?

-21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWTR's earnings are forecast to decline over the next 3 years (-21.7% per year).

Earnings vs Market: TWTR's earnings are forecast to decline over the next 3 years (-21.7% per year).

High Growth Earnings: TWTR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TWTR's revenue (11.6% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: TWTR's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TWTR's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has Twitter performed over the past 5 years?

71.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TWTR has high quality earnings.

Growing Profit Margin: TWTR's current net profit margins (47.7%) are higher than last year (36.3%).


Past Earnings Growth Analysis

Earnings Trend: TWTR has become profitable over the past 5 years, growing earnings by 71.7% per year.

Accelerating Growth: TWTR's earnings growth over the past year (53.9%) is below its 5-year average (71.7% per year).

Earnings vs Industry: TWTR earnings growth over the past year (53.9%) exceeded the Interactive Media and Services industry 15.9%.


Return on Equity

High ROE: TWTR's Return on Equity (19%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Twitter's financial position?


Financial Position Analysis

Short Term Liabilities: TWTR's short term assets ($6.6B) exceed its short term liabilities ($762.6M).

Long Term Liabilities: TWTR's short term assets ($6.6B) exceed its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: TWTR's debt to equity ratio (21.3%) is considered satisfactory.

Reducing Debt: TWTR's debt to equity ratio has reduced from 36.7% to 21.3% over the past 5 years.

Debt Coverage: TWTR's debt is well covered by operating cash flow (75.7%).

Interest Coverage: TWTR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TWTR has a low level of unsold assets or inventory.

Debt Coverage by Assets: TWTR's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

What is Twitter's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TWTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TWTR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TWTR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TWTR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TWTR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Twitter's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Jack Dorsey (42yo)

4.4yrs

Tenure

US$1

Compensation

Mr. Jack Dorsey Co-founded Square, Inc. in February 2009 and has been its Chief Executive Officer and President since July 2009. Mr. Dorsey Co-founded Twitter, Inc. in 2006 and has been its Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD1.00) is below average for companies of similar size in the US market ($USD10.94M).

Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.5yrs

Average Tenure

45yo

Average Age

Experienced Management: TWTR's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

53yo

Average Age

Experienced Board: TWTR's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: TWTR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$287,85205 Nov 19
Robert Kaiden
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares9,685
Max PriceUS$29.72
SellUS$20,44502 Oct 19
Robert Kaiden
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares498
Max PriceUS$41.05
SellUS$360,69225 Sep 19
Vijaya Gadde
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Secretary
Shares8,332
Max PriceUS$43.29
SellUS$406,36802 Aug 19
Robert Kaiden
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares9,441
Max PriceUS$43.04
SellUS$17,34203 Jul 19
Robert Kaiden
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares487
Max PriceUS$35.61
SellUS$135,53504 Jun 19
Robert Kaiden
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares3,796
Max PriceUS$35.70
SellUS$344,17604 May 19
Robert Kaiden
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares8,703
Max PriceUS$39.55
SellUS$11,39404 Apr 19
Robert Kaiden
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares348
Max PriceUS$32.74
SellUS$39,05022 Mar 19
Michael Montano
EntityIndividual
Shares1,250
Max PriceUS$31.24
SellUS$38,12508 Mar 19
Michael Montano
EntityIndividual
Shares1,250
Max PriceUS$30.50
SellUS$79,84406 Mar 19
Robert Kaiden
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares2,603
Max PriceUS$30.67
SellUS$158,43606 Feb 19
Robert Kaiden
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares4,676
Max PriceUS$33.88
SellUS$11,78005 Jan 19
Robert Kaiden
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares417
Max PriceUS$28.25

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Management Team

  • Omid Kordestani (55yo)

    Executive Chairman

    • Tenure: 4.2yrs
    • Compensation: US$2.08m
  • Krista Bessinger

    Senior Director of Investor Relations

    • Tenure: 0yrs
  • Jack Dorsey (42yo)

    Co-Founder

    • Tenure: 4.4yrs
    • Compensation: US$1.00
  • Arvinder Gujral

    Head of Mobile Business Development - India & South East Asia

    • Tenure: 6.3yrs
  • Noah Glass

    Co-Founder

    • Tenure: 13.9yrs
  • Ned Segal (45yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: US$4.96m
  • Vijaya Gadde (44yo)

    Chief Legal Officer & Secretary

    • Tenure: 6.3yrs
    • Compensation: US$11.80m
  • Robert Kaiden (52yo)

    Chief Accounting Officer

    • Tenure: 4.5yrs
  • Leslie Berland

    People & Marketing Lead

    • Tenure: 3.9yrs
  • Parag Agrawal

    Technology Lead

    • Tenure: 2.2yrs

Board Members

  • David Rosenblatt (51yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$305.00k
  • Omid Kordestani (55yo)

    Executive Chairman

    • Tenure: 4.2yrs
    • Compensation: US$2.08m
  • Robert Zoellick (65yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$228.97k
  • Patrick Pichette (56yo)

    Lead Independent Director

    • Tenure: 1yrs
    • Compensation: US$305.00k
  • Martha Lane Fox (46yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$295.00k
  • Bret Taylor (39yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$285.00k
  • Ngozi Okonjo-Iweala (65yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$228.97k
  • Jack Dorsey (42yo)

    Co-Founder

    • Tenure: 4.4yrs
    • Compensation: US$1.00

Company Information

Twitter, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Twitter, Inc.
  • Ticker: TWTR
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$23.672b
  • Shares outstanding: 774.86m
  • Website: https://www.twitter.com

Number of Employees


Location

  • Twitter, Inc.
  • 1355 Market Street
  • Suite 900
  • San Francisco
  • California
  • 94103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TWTRNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2013
TWRDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2013
TWRXTRA (XETRA Trading Platform)YesCommon StockDEEURNov 2013
TWTRSWX (SIX Swiss Exchange)YesCommon StockCHCHFNov 2013
TWTR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2013
TWTR-UETLX (Eurotlx)YesCommon StockITEURNov 2013
0QZBLSE (London Stock Exchange)YesCommon StockGBUSDNov 2013
TWTRWBAG (Wiener Boerse AG)YesCommon StockATEURNov 2013
TWTR34BOVESPA (Bolsa de Valores de Sao Paulo)BRD EA REPR 1/2 COM USD0.000005 STKBRBRLAug 2014
TWTRBASE (Buenos Aires Stock Exchange)CEDEAR EACH 1 REP 1 COM USD0.000005ARARSApr 2019

Biography

Twitter, Inc. operates as a platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter, a platform that allows users to consume,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 00:33
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.