NasdaqGS:TWOU

Stock Analysis Report

Executive Summary

2U, Inc. operates as an education technology company in the United States, Hong Kong, South Africa, and the United Kingdom.

Snowflake

Fundamentals

Excellent balance sheet with limited growth.

Risks

  • 2U has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has 2U's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.4%

NasdaqGS:TWOU

-1.0%

US Software

-1.6%

US Market


1 Year Return

-78.6%

NasdaqGS:TWOU

13.9%

US Software

-3.0%

US Market

TWOU underperformed the Software industry which returned 13.9% over the past year.

TWOU underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

TWOUIndustryMarket
7 Day7.4%-1.0%-1.6%
30 Day-49.9%-6.8%-5.7%
90 Day-54.9%1.6%0.2%
1 Year-78.6%-78.6%15.5%13.9%-0.8%-3.0%
3 Year-50.4%-50.4%111.0%102.7%38.1%29.1%
5 Year-5.7%-5.7%156.4%137.9%50.8%34.1%

Price Volatility Vs. Market

How volatile is 2U's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 2U undervalued based on future cash flows and its price relative to the stock market?

1.31x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for 2U to establish if it is available at moderate discount.

Unable to calculate intrinsic value for 2U to establish if it is available at substantial discount.


Price Based on Earnings

2U is loss making, we can't compare its value to the US Software industry average.

2U is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for 2U, we can't assess if its growth is good value.


Price Based on Value of Assets

2U is good value based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is 2U expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

-2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

2U's revenue is expected to grow significantly at over 20% yearly.

2U is not considered high growth as it is expected to be loss making for the next 1-3 years.

2U's revenue growth is expected to exceed the United States of America market average.

Unable to compare 2U's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare 2U's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

2U is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has 2U performed over the past 5 years?

-12.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

2U does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare 2U's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare 2U's 1-year growth to the US Software industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if 2U has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if 2U has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if 2U improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is 2U's financial position?


Financial Position Analysis

2U is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

2U's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

2U's level of debt (28.1%) compared to net worth is satisfactory (less than 40%).

Unable to establish if 2U's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.4x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

2U has sufficient cash runway for 2.1 years based on current free cash flow.

2U has sufficient cash runway for 1.8 years if free cash flow continues to grow at historical rates of 46.2% each year.


Next Steps

Dividend

What is 2U's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate 2U's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate 2U's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as 2U has not reported any payouts.

Unable to verify if 2U's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as 2U has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of 2U's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of 2U's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Chip Paucek (49yo)

7.6yrs

Tenure

US$16,923,643

Compensation

Mr. Christopher J. Paucek, also known as Chip, serves as a Member of Advisory Board at Exceed Capital Partners. He is a Co-Founder of 2U, Inc. and has been its Chief Executive Officer and Director since Ja ...


CEO Compensation Analysis

Chip's remuneration is higher than average for companies of similar size in United States of America.

Chip's compensation has increased whilst company is loss making.


Management Age and Tenure

1.8yrs

Average Tenure

50yo

Average Age

The average tenure for the 2U management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.8yrs

Average Tenure

63yo

Average Age

The tenure for the 2U board of directors is about average.


Insider Trading

More shares have been bought than sold by 2U individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$498,90816 Aug 19
Mark Chernis
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares32,250
Max PriceUS$15.47
BuyUS$755,00012 Aug 19
John Larson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50,000
Max PriceUS$15.10
BuyUS$50,10212 Aug 19
Edward Macias
EntityIndividual
Shares3,489
Max PriceUS$14.36
BuyUS$1,007,59409 Aug 19
Robert Stavis
EntityIndividual
Role
Member of the Board of Directors
Director
Shares75,000
Max PriceUS$14.01
BuyUS$1,009,39409 Aug 19
Gregory Peters
EntityIndividual
Shares72,358
Max PriceUS$13.95
BuyUS$500,22915 May 19
Gregory Peters
EntityIndividual
Shares12,459
Max PriceUS$40.15
SellUS$5,97515 May 19
John Ellis
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares152
Max PriceUS$39.31
SellUS$64,86215 May 19
Matthew Norden
EntityIndividual
Shares1,650
Max PriceUS$39.31
BuyUS$499,95827 Nov 18
Gregory Peters
EntityIndividual
Shares9,761
Max PriceUS$51.22

Ownership Breakdown


Management Team

  • Cathy Graham (58yo)

    Chief Financial Officer

    • Tenure: 7.3yrs
    • Compensation: US$3.49m
  • Mark Chernis (52yo)

    Chief Operating Officer

    • Tenure: 1.3yrs
    • Compensation: US$11.44m
  • Chip Paucek (49yo)

    Co-Founder

    • Tenure: 7.6yrs
    • Compensation: US$16.92m
  • John Ellis (51yo)

    Senior VP

    • Tenure: 1.3yrs
  • Heather Attale

    Senior Vice President of Project Management

    • Tenure: 0.0yrs
  • James Kenigsberg (42yo)

    Chief Technology Officer

    • Tenure: 9.1yrs
    • Compensation: US$2.08m
  • Denis Ryan

    Executive Vice President of Compliance & Regulatory Affairs

    • Tenure: 0.0yrs
  • Ed Goodwin

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Harsha Mokkarala (39yo)

    Chief Revenue Officer

    • Tenure: 1.3yrs
    • Compensation: US$2.02m
  • Rani Hammond

    Chief People Officer

    • Tenure: 1.8yrs

Board Members

  • Paul Maeder (65yo)

    Chairman

    • Tenure: 6.8yrs
    • Compensation: US$154.96k
  • Tim Haley (63yo)

    Director

    • Tenure: 9.5yrs
    • Compensation: US$144.96k
  • Rob Stavis (56yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$154.96k
  • Jack Larson (67yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: US$144.96k
  • Chip Paucek (49yo)

    Co-Founder

    • Tenure: 7.6yrs
    • Compensation: US$16.92m
  • Jeremy Johnson

    Member of Advisory Board

    • Tenure: 0.0yrs
  • Adrian Fenty

    Member of Advisory Board

    • Tenure: 5.5yrs
  • Josh Jarrett

    Member of Advisory Board

    • Tenure: 5.5yrs
  • Binta Brown

    Member of Advisory Board

    • Tenure: 5.5yrs
  • Haley Demaria

    Member of Advisory Board

    • Tenure: 5.5yrs

Company Information

2U, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 2U, Inc.
  • Ticker: TWOU
  • Exchange: NasdaqGS
  • Founded: 2008
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$1.129b
  • Shares outstanding: 63.33m
  • Website: https://2u.com

Number of Employees


Location

  • 2U, Inc.
  • 7900 Harkins Road
  • Lanham
  • Maryland
  • 20706
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TWOUNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2014
2U1DB (Deutsche Boerse AG)YesCommon StockDEEURMar 2014
0LHPLSE (London Stock Exchange)YesCommon StockGBUSDMar 2014

Biography

2U, Inc. operates as an education technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company operates through two segments, Graduate Program Segment and Short Cou ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 00:36
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.