Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin3.4%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin0.7%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
B
Years to Pay Off Debt32.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$1.7B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$2.7B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
C
Free Cash Flow$945M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income170.9%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$287M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit48.9%
Operating Margin3.4%
Net Margin0.7%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
Gross Profit %
48.9%▼
51.1%▲
49.2%▲
47.4%
Operating Margin %
3.4%▲
-0.9%▲
-9.4%▲
-26.9%
Net Income %
0.7%▲
-2.5%▲
-24.4%▲
-32.8%
Diluted EPS
0.21▲
-0.66▲
-5.54▲
-6.86
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$9.8B
$9.9B
$11.6B
$12.6B
N/A
Total Debt
$1.1B▼
$1.1B▼
$1.2B▼
$1.2B•
N/A
Working Capital
$2.7B▲
$2.6B▼
$4.2B▼
$4.2B•
N/A
Years to Pay Debt
31.97
-10.15
-1.14
-0.99
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$945M▲
$657M▲
$364M▲
-$335M•
N/A
Owner Earnings
$287M
$155M
-$680M
-$897M
N/A
CapEx % of Net Income
170.9%
N/A
N/A
N/A
N/A
Income Statement
2025
2024
2023
2022
Tax Effect Of Unusual Items
-38,028
-4,514
-111,802
-36,615
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
467,633
187,042
426,500
-577,465
Total Unusual Items
-97,508
-21,493
-532,391
-174,358
Total Unusual Items Excluding Goodwill
-97,508
-21,493
-532,391
-174,358
Net Income From Continuing Operation Net Minority Interest
33,834
-109,403
-1,015,441
-1,256,145
Reconciled Depreciation
195,444
205,984
284,413
279,127
Reconciled Cost Of Revenue
2,438,649
2,021,096
1,902,730
1,815,465
EBITDA
370,125
165,549
-105,891
-751,823
EBIT
174,681
-40,435
-390,304
-1,030,950
Normalized Income
93,314
-92,424
-594,852
-1,118,402
Net Income From Continuing And Discontinued Operation
33,834
-109,403
-1,015,441
-1,256,145
Total Expenses
4,892,539
4,498,471
4,544,249
4,857,271
Total Operating Income As Reported
157,802
-53,708
-876,541
-1,205,308
Diluted Average Shares
159,789
165,925
183,328
182,994
Basic Average Shares
152,986
165,925
183,328
182,994
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
33,834
-109,403
-1,015,441
-1,256,145
Net Income Common Stockholders
33,834
-109,403
-1,015,441
-1,256,145
Net Income
33,834
-109,403
-1,015,441
-1,256,145
Net Income Including Noncontrolling Interests
33,834
-109,403
-1,015,441
-1,256,145
Net Income Continuous Operations
33,834
-109,403
-1,015,441
-1,256,145
Tax Provision
21,260
20,790
18,712
12,513
Pretax Income
55,094
-88,613
-996,729
-1,243,632
Other Income Expense
-119,587
-48,178
-606,425
-212,682
Other Non Operating Income Expenses
79,138
81,796
47,863
-3,009
Special Income Charges
-97,508
-21,493
-532,391
-174,358
Write Off
80,629
8,220
46,154
0
Impairment Of Capital Assets
1,849
0
320,504
97,722
Restructuring And Mergern Acquisition
15,030
13,273
165,733
76,636
Earnings From Equity Interest
-101,217
-108,481
-121,897
-35,315
Operating Income
174,681
-40,435
-390,304
-1,030,950
Operating Expense
2,304,053
2,318,647
2,434,234
2,844,527
Depreciation Amortization Depletion Income Statement
45,607
47,256
77,128
81,848
Depreciation And Amortization In Income Statement
45,607
47,256
77,128
81,848
Amortization
45,607
47,256
77,128
81,848
Amortization Of Intangibles Income Statement
45,607
47,256
77,128
81,848
Research And Development
1,020,159
1,008,747
942,790
1,079,081
Selling General And Administration
1,238,287
1,262,644
1,414,316
1,683,598
Selling And Marketing Expense
827,609
813,573
945,857
1,166,191
General And Administrative Expense
410,678
449,071
468,459
517,407
Other Gand A
410,678
449,071
468,459
517,407
Gross Profit
2,478,734
2,278,212
2,043,930
1,813,577
Cost Of Revenue
2,588,486
2,179,824
2,110,015
2,012,744
Total Revenue
5,067,220
4,458,036
4,153,945
3,826,321
Operating Revenue
5,067,220
4,458,036
4,153,945
3,826,321
Balance Sheet
2025
2024
2023
2022
2021
Ordinary Shares Number
152,411
152,611
181,946
185,976
Share Issued
152,411
152,611
181,946
185,976
Net Debt
309,952
569,290
333,022
335,630
Total Debt
1,081,572
1,110,147
1,159,595
1,239,316
Tangible Book Value
2,681,636
2,710,123
4,329,714
4,424,954
Invested Capital
8,813,833
8,943,553
10,721,505
11,546,424
Working Capital
2,689,720
2,627,079
4,165,675
4,175,928
Net Tangible Assets
2,681,636
2,710,123
4,329,714
4,424,954
Capital Lease Obligations
89,285
119,560
170,642
251,934
Common Stock Equity
7,821,546
7,952,966
9,732,552
10,559,042
Total Capitalization
8,813,833
8,943,553
10,721,505
11,546,424
Total Equity Gross Minority Interest
7,821,546
7,952,966
9,732,552
10,559,042
Stockholders Equity
7,821,546
7,952,966
9,732,552
10,559,042
Gains Losses Not Affecting Retained Earnings
15,668
-1,301
619
-121,161
Other Equity Adjustments
15,668
-1,301
619
-121,161
Retained Earnings
-8,342,464
-7,522,010
-5,065,972
-3,375,836
Additional Paid In Capital
16,148,190
15,476,124
14,797,723
14,055,853
Capital Stock
152
153
182
186
Common Stock
152
153
182
186
Total Liabilities Net Minority Interest
1,949,344
1,912,506
1,877,155
2,005,262
Total Non Current Liabilities Net Minority Interest
1,062,336
1,092,286
1,138,858
1,197,104
Other Non Current Liabilities
15,887
15,824
29,135
23,881
Long Term Debt And Capital Lease Obligation
1,046,449
1,076,462
1,109,723
1,173,223
Long Term Capital Lease Obligation
54,162
85,875
120,770
185,841
Long Term Debt
992,287
990,587
988,953
987,382
Current Liabilities
887,008
820,220
738,297
808,158
Other Current Liabilities
318
29,086
1,066
Current Deferred Liabilities
158,677
155,680
144,499
139,110
Current Deferred Revenue
158,677
155,680
144,499
139,110
Current Debt And Capital Lease Obligation
35,123
33,685
49,872
66,093
Current Capital Lease Obligation
35,123
33,685
49,872
66,093
Pensionand Other Post Retirement Benefit Plans Current
143,146
115,521
0
39,182
Payables And Accrued Expenses
550,062
515,334
514,840
562,707
Current Accrued Expenses
406,714
335,434
324,312
345,783
Payables
143,348
179,900
190,528
216,924
Total Tax Payable
58,259
79,731
70,913
92,319
Accounts Payable
85,089
100,169
119,615
124,605
Total Assets
9,770,890
9,865,472
11,609,707
12,564,304
Total Non Current Assets
6,194,162
6,418,173
6,705,735
7,580,218
Other Non Current Assets
242,674
206,122
234,799
360,899
Investments And Advances
301,642
485,835
593,582
699,911
Long Term Equity Investment
301,642
485,835
593,582
699,911
Goodwill And Other Intangible Assets
5,139,910
5,242,843
5,402,838
6,134,088
Other Intangible Assets
-151,877
-423
159,572
849,935
Goodwill
5,291,787
5,243,266
5,243,266
5,284,153
Net PPE
509,936
483,373
474,516
385,320
Accumulated Depreciation
-112,911
-146,562
-184,058
-286,296
Gross PPE
622,847
629,935
658,574
671,616
Leases
62,143
78,104
92,315
91,660
Construction In Progress
421,795
357,334
297,655
257,983
Other Properties
66,874
117,077
178,502
221,548
Machinery Furniture Equipment
72,035
77,420
90,102
100,425
Current Assets
3,576,728
3,447,299
4,903,972
4,984,086
Other Current Assets
162,387
140,449
132,354
281,510
Prepaid Assets
307,263
333,911
196,850
186,131
Receivables
636,736
588,540
562,773
547,507
Accounts Receivable
636,736
588,540
562,773
547,507
Allowance For Doubtful Accounts Receivable
-21,500
-27,500
-42,000
Gross Accounts Receivable
658,236
616,040
604,773
Cash Cash Equivalents And Short Term Investments
2,470,342
2,384,399
4,011,995
4,155,069
Other Short Term Investments
1,788,007
1,963,102
3,356,064
3,503,317
Cash And Cash Equivalents
682,335
421,297
655,931
651,752
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
945,427
657,455
363,517
-334,550
Repurchase Of Capital Stock
-868,939
-2,334,400
-668,751
0
Repayment Of Debt
-5,306
-12,558
-16,134
-13,423
Issuance Of Debt
0
0
984,723
Issuance Of Capital Stock
0
0
1,766,400
Capital Expenditure
-57,817
-58,786
-51,235
-80,182
Interest Paid Supplemental Data
37,578
37,904
38,389
37,500
Income Tax Paid Supplemental Data
17,711
36,547
37,818
7,413
End Cash Position
682,534
431,437
655,931
656,078
Beginning Cash Position
431,437
655,931
656,078
1,481,831
Effect Of Exchange Rate Changes
0
0
108
60
Changes In Cash
251,097
-224,494
-255
-825,813
Financing Cash Flow
-833,095
-2,311,572
-643,610
45,007
Cash Flow From Continuing Financing Activities
-833,095
-2,311,572
-643,610
45,007
Net Other Financing Charges
-213
-2,000
-2,565
-1,133
Proceeds From Stock Option Exercised
41,363
37,386
43,840
59,563
Net Common Stock Issuance
-868,939
-2,334,400
-668,751
0
Common Stock Payments
-868,939
-2,334,400
-668,751
0
Common Stock Issuance
0
0
1,766,400
Net Issuance Payments Of Debt
-5,306
-12,558
-16,134
-13,423
Net Long Term Debt Issuance
-5,306
-12,558
-16,134
-13,423
Long Term Debt Payments
-5,306
-12,558
-16,134
-13,423
Long Term Debt Issuance
0
0
984,723
Investing Cash Flow
80,948
1,370,837
228,603
-616,452
Cash Flow From Continuing Investing Activities
80,948
1,370,837
228,603
-616,452
Net Investment Purchase And Sale
200,261
1,429,623
247,414
-498,860
Sale Of Investment
1,251,119
2,353,486
2,200,417
1,439,477
Purchase Of Investment
-1,050,858
-923,863
-1,953,003
-1,938,337
Net Business Purchase And Sale
-61,496
0
32,424
-37,410
Sale Of Business
0
0
38,194
0
Purchase Of Business
-61,496
0
-5,770
-37,410
Net PPE Purchase And Sale
-5,848
-6,978
-11,310
-34,421
Purchase Of PPE
-5,848
-6,978
-11,310
-34,421
Capital Expenditure Reported
-51,969
-51,808
-39,925
-45,761
Operating Cash Flow
1,003,244
716,241
414,752
-254,368
Cash Flow From Continuing Operating Activities
1,003,244
716,241
414,752
-254,368
Change In Working Capital
-113,868
-234,141
-230,645
-396,643
Change In Other Working Capital
2,038
11,181
5,371
-2,688
Change In Other Current Liabilities
-36,867
-50,793
-52,866
-64,282
Change In Other Current Assets
-122,203
-47,077
-2,328
-146,458
Change In Payables And Accrued Expense
87,679
67,178
-39,446
105,766
Change In Accrued Expense
102,652
87,434
-51,816
75,430
Change In Payable
-14,973
-20,256
12,370
30,336
Change In Account Payable
-14,973
-20,256
12,370
30,336
Change In Prepaid Assets
10,552
-153,470
-56,283
-94,326
Change In Receivables
-55,067
-61,160
-85,093
-194,655
Changes In Account Receivables
-55,067
-61,160
-85,093
-194,655
Other Non Cash Items
110,650
106,359
119,878
119,519
Stock Based Compensation
600,407
616,607
675,857
798,560
Provisionand Write Offof Assets
8,230
35,393
51,859
35,012
Asset Impairment Charge
82,478
8,220
366,658
97,722
Amortization Of Securities
-14,132
-22,940
-44
33,165
Deferred Tax
-17,236
Deferred Income Tax
-17,236
Depreciation Amortization Depletion
195,444
205,984
284,413
279,127
Depreciation And Amortization
195,444
205,984
284,413
279,127
Operating Gains Losses
100,201
110,162
162,217
35,315
Earnings Losses From Equity Investments
101,217
108,481
121,897
35,315
Gain Loss On Investment Securities
-1,016
1,681
8,043
Net Income From Continuing Operations
33,834
-109,403
-1,015,441
-1,256,145
2/4
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $7.8B
Warren's Owner Earnings
$287M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
2/4 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$5.1B
vs > $1.5B revenue
✅
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
4.03x
vs Current Ratio > 2.0x
❌
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
3 loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $5.1Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 4.03xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 3 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
These metrics estimate what TWLO is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
1.6%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
170.9%
N/A
N/A
N/A
N/A
Repurchase of Capital Stock
-$869M
-$2.3B
-$669M
$0M
N/A
Free Cash Flow
$945M▲
$657M▲
$364M▲
-$335M•
N/A•
Warren's Owner Earnings
$287M
$155M
-$680M
-$897M
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare TWLO against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
TWLO (TWLO) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 48.9%. Operating margin: 3.4%. Net margin: 0.7%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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