NYSE:TWTR

Stock Analysis Report

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Executive Summary

Twitter, Inc. operates as a platform for public self-expression and conversation in real time United States and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

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

2.1%

TWTR

-3.8%

US Interactive Media and Services

-1.5%

US Market


1 Year Return

-3.7%

TWTR

21.8%

US Interactive Media and Services

12.9%

US Market

Return vs Industry: TWTR underperformed the US Interactive Media and Services industry which returned 21.8% over the past year.

Return vs Market: TWTR underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

TWTRIndustryMarket
7 Day2.1%-3.8%-1.5%
30 Day1.6%-6.0%-1.8%
90 Day25.7%2.1%6.6%
1 Year-3.7%-3.7%21.9%21.8%15.4%12.9%
3 Year140.5%140.5%42.4%42.2%39.6%30.2%
5 Year55.9%55.9%134.1%133.6%93.4%71.7%

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?

4.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TWTR ($39.9) is trading above our estimate of fair value ($28.01)

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


Price To Earnings Ratio

PE vs Industry: TWTR is unprofitable, so we can't compare its PE Ratio to the US Interactive Media and Services industry average.

PE vs Market: TWTR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TWTR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TWTR is overvalued based on its PB Ratio (4.1x) compared to the US Interactive Media and Services industry average (2.4x).


Next Steps

Future Growth

How is Twitter forecast to perform in the next 1 to 3 years based on estimates from 37 analysts?

80.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWTR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: TWTR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TWTR's is expected to become profitable in the next 3 years.

Revenue vs Market: TWTR's revenue (14.5% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: TWTR's revenue (14.5% 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 (4.3%).


Next Steps

Past Performance

How has Twitter performed over the past 5 years?

51.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TWTR is currently unprofitable.

Growing Profit Margin: TWTR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TWTR is unprofitable, but has reduced losses over the past 5 years at a rate of 51.8% per year.

Accelerating Growth: Unable to compare TWTR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TWTR is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (-22.8%).


Return on Equity

High ROE: TWTR has a negative Return on Equity (-16.08%), as it is currently unprofitable.


Next Steps

Financial Health

How is Twitter's financial position?


Financial Position Analysis

Short Term Liabilities: TWTR's short term assets ($8.5B) exceed its short term liabilities ($841.1M).

Long Term Liabilities: TWTR's short term assets ($8.5B) exceed its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: TWTR's debt to equity ratio (44.8%) is considered high.

Reducing Debt: TWTR's debt to equity ratio has increased from 33.4% to 44.8% over the past 5 years.

Debt Coverage: TWTR's debt is well covered by operating cash flow (30.9%).

Interest Coverage: Insufficient data to determine if TWTR's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Jack Dorsey (43 yo)

5.17yrs

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 ($USD1.00) is below average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jack Dorsey
Co-Founder5.17yrsUS$1.002.74%
$ 861.3m
Ned Segal
Chief Financial Officer3.08yrsUS$6.11m0.049%
$ 15.4m
Vijaya Gadde
Chief Legal Officer7.08yrsUS$7.90m0.089%
$ 28.0m
Noah Glass
Co-Founder14.67yrsno datano data
Robert Kaiden
Chief Accounting Officer5.25yrsno data0.00072%
$ 226.6k
Parag Agrawal
Technology Lead2.92yrsno datano data
Krista Bessinger
Senior Director of Investor Relationsno datano datano data
Leslie Berland
People & Marketing Lead4.67yrsno datano data
Jennifer Christie
Chief HR Officerno datano datano data
Arvinder Gujral
Head of Mobile Business Development - India & South East Asia7.08yrsno datano data
Benjamin Ampen
Managing Director of Middle East5.25yrsno datano data
Maya Hari
Managing Director of APAC3.83yrsno datano data

5.2yrs

Average Tenure

45.5yo

Average Age

Experienced Management: TWTR's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jack Dorsey
Co-Founder5.17yrsUS$1.002.74%
$ 861.3m
Egon Durban
Independent Director0.50yrno data0%
$ 0
David Rosenblatt
Independent Director9.75yrsUS$306.08k0.016%
$ 5.1m
Omid Kordestani
Non-Employee Director4.92yrsUS$2.08m0.070%
$ 22.1m
Robert Zoellick
Independent Director2.17yrsUS$276.50k0.0019%
$ 582.2k
Patrick Pichette
Independent Chair0.25yrUS$313.16k0.0024%
$ 758.5k
Martha Lane Fox
Independent Director4.42yrsUS$293.16k0.0045%
$ 1.4m
Bret Taylor
Independent Director4.17yrsUS$282.68k0.0073%
$ 2.3m
Ngozi Okonjo-Iweala
Independent Director2.17yrsUS$287.24k0.0019%
$ 598.0k
Jesse Cohn
Independent Director0.42yrno data0.00012%
$ 37.8k
Fei-Fei Li
Independent Director0.33yrno datano data

2.2yrs

Average Tenure

47yo

Average Age

Experienced Board: TWTR's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$31.471b
  • Shares outstanding: 788.75m
  • 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 United States and internationally. The company offers various products and services, including Twitter, a platf ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 05:42
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.