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Twist Bioscience Corp (TWST)
NASDAQ:TWST
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Twist Bioscience
(NASDAQ:TWST)44Neutral
Positive Factors
Financial Performance
Twist Bioscience's low revenue exposure to China and limited exposure to US academic funding provides a competitive advantage.
Product Innovation
Twist built a novel platform to industrialize DNA synthesis; this enables the increasingly rapid production of longer, customizable, and higher-quality DNA fragments that are 'written' onto a silicon chip.
Negative Factors
Market Conditions
There are questions around TWST's continued ability to take market share at current levels, given an uncertain sector backdrop.
Twist Bioscience (TWST) vs. S&P 500 (SPY)
Market Cap
$2.32B
Dividend YieldN/A
Average Volume (3M)974.01K
Price to Earnings (P/E)―
Beta (1Y)3.79
Revenue Growth25.85%
EPS Growth6.06%
CountryUS
Employees923
SectorHealthcare
Sector Strength74
IndustryMedical Diagnostics & Screening
Share Statistics
EPS (TTM)-3.38
Shares Outstanding59,651,142
10 Day Avg. Volume1,079,195
30 Day Avg. Volume974,008
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.31
Price to Cash Flow (P/CF)-27.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$54.29Price Target Upside36.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Twist Bioscience Business Overview & Revenue Model
Company DescriptionTwist Bioscience Corporation is a biotechnology company specializing in the synthesis of DNA. It operates in sectors such as healthcare, agriculture, industrial chemicals, and academic research, providing innovative solutions that enable customers to conduct research and development more efficiently and affordably. Twist leverages its proprietary silicon-based DNA synthesis platform to offer a range of products and services, including synthetic DNA, next-generation sequencing tools, and antibody discovery solutions.
How the Company Makes MoneyTwist Bioscience generates revenue primarily through the sale of synthetic DNA and related products. The company's proprietary platform allows it to produce high-quality DNA at a lower cost and higher throughput compared to traditional methods, making it an attractive choice for researchers and companies in various fields. Key revenue streams include custom DNA synthesis for research and development applications, selling DNA libraries for drug discovery, and providing next-generation sequencing tools. Additionally, Twist partners with companies in pharmaceuticals, agriculture, and data storage, providing tailored solutions that contribute to its earnings. The company's growth is supported by ongoing advancements in biotechnology and increasing demands for synthetic biology applications.
Twist Bioscience Financial Statement Overview
Summary
Twist Bioscience shows promising revenue growth but struggles with profitability and cash flow management. The company's strong equity position provides a cushion against financial instability, yet the persistent losses and high cash burn rate pose significant risks to its financial health.Income Statement
Twist Bioscience has demonstrated a consistent increase in revenue over the years, with a notable revenue growth rate of 27.7% from 2023 to 2024. However, the company faces significant challenges with profitability, as indicated by its negative net profit margin and EBIT margin. Despite an improvement in gross profit margin to 42.6% in 2024, the high operating losses suggest profitability concerns.45
Neutral
Balance Sheet
The balance sheet shows a solid equity base with an equity ratio of 76.9% in 2024, indicating a strong reliance on equity over debt. However, the debt-to-equity ratio of 0.18 is relatively low, suggesting underutilization of debt financing. The return on equity remains negative due to persistent losses, highlighting profitability challenges.50
Neutral
Cash Flow
Twist Bioscience's cash flow statement indicates operational challenges, with negative free cash flow and operating cash flow. Despite a reduction in negative free cash flow from the previous year, the operating cash flow to net income ratio remains unfavorable, reflecting ongoing cash management challenges.40
Negative
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| ― | ― | ― | ― | ― | Gross Profit |
| 133.35M | 89.73M | 84.23M | 51.71M | 28.69M | EBIT |
| -220.83M | -217.16M | -234.78M | -152.73M | -140.08M | EBITDA |
| -176.73M | -174.16M | -211.68M | -143.91M | -132.09M | Net Income Common Stockholders |
| -208.73M | -204.62M | -217.86M | -152.10M | -139.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| ― | ― | ― | ― | ― | Total Assets |
| 614.32M | 776.40M | 961.38M | 702.10M | 398.88M | Total Debt |
| 85.03M | 94.07M | 94.91M | 62.92M | 35.98M | Net Debt |
| -191.39M | -242.34M | -410.06M | -414.94M | -254.02M | Total Liabilities |
| 141.63M | 152.97M | 171.99M | 121.28M | 62.62M | Stockholders Equity |
| ― | ― | ― | ― | ― |
| Cash Flow | Free Cash Flow | |||
| -69.17M | -170.25M | -226.24M | -139.31M | -152.12M | Operating Cash Flow |
| -64.09M | -142.47M | -124.39M | -112.24M | -142.25M | Investing Cash Flow |
| ― | ― | ― | ― | ― | Financing Cash Flow |
| ― | ― | ― | ― | ― |
Twist Bioscience Technical Analysis
Negative
39.68
Price Trends
47.00
Negative
46.03
Negative
46.65
Negative
Market Momentum
-2.81
Positive
37.20
Neutral
17.62
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWST, the sentiment is Negative. The current price of 39.68 is below the 20-day moving average (MA) of 45.25, below the 50-day MA of 47.00, and below the 200-day MA of 46.65, indicating a bearish trend. The MACD of -2.81 indicates Positive momentum. The RSI at 37.20 is Neutral, neither overbought nor oversold. The STOCH value of 17.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TWST.
Twist Bioscience Risk Analysis
Twist Bioscience disclosed 60 risk factors in its most recent earnings report. Twist Bioscience reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Twist Bioscience Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
50 Neutral | $146.11M | ― | -119.89% | ― | 150.95% | 5.48% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
49 Neutral | $13.45B | ― | -51.54% | ― | -2.93% | -4.69% | |
49 Neutral | $3.73B | ― | -18.96% | ― | -89.95% | -123.71% | |
48 Neutral | $466.72M | ― | -76.39% | ― | -9.71% | 42.17% | |
44 Neutral | $2.32B | ― | -43.28% | ― | 25.85% | 6.06% | |
39 Underperform | $941.49M | ― | -59.52% | ― | 59.55% | 3.09% |
* Healthcare Sector Average
Performance Comparison
TWST
Twist Bioscience
39.68
2.89
7.86%
ILMN
Illumina
84.89
-46.00
-35.14%
EDIT
Editas Medicine
1.76
-7.38
-80.74%
NTLA
Intellia Therapeutics
9.10
-21.15
-69.92%
CRSP
Crispr Therapeutics AG
43.45
-37.54
-46.35%
DNA
Ginkgo Bioworks Holdings
8.12
-37.88
-82.35%
Twist Bioscience Earnings Call Summary
Earnings Call Date: Feb 3, 2025 | % Change Since: -24.23% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in revenue growth and gross margin improvement, driven by the SynBio and NGS segments. While there are challenges in the Biopharma segment and limited exposure to China, the company's strategic investments and innovative platform position it for future growth.Highlights
Record Revenue and Growth
Twist Bioscience achieved record revenue of $88.7 million for the first quarter of fiscal 2025, marking a 24% increase year-over-year and a 5% increase sequentially.
Gross Margin Improvement
Gross margin improved to 48.3%, up from 40.5% in the first quarter of fiscal 2024, demonstrating the leverage of fixed costs with higher volume.
Significant Growth in SynBio Revenue
SynBio revenue increased to $34.4 million, a year-over-year growth of 28%, driven by a diverse global customer base.
NGS Revenue Growth
NGS revenue grew to $48.6 million, a 23% increase year-over-year, driven by commercialization of liquid biopsy and rare disease assays.
Positive Adjusted EBITDA Trend
Adjusted EBITDA loss improved to $16.3 million, an $11.5 million improvement compared to the first quarter of fiscal 2024.
Geographic Revenue Growth
Americas revenue increased by 22% year-over-year, EMEA by 33%, and APAC by 6%.
Lowlights
Biopharma Revenue Challenges
Although Biopharma revenue increased to $5.7 million, the company remains cautiously optimistic as the funnel of opportunities continues to build, indicating potential challenges in this segment.
Limited Exposure to China
China represents a small portion of revenue at approximately 2% of total revenue, indicating limited market penetration in a significant global market.
Company Guidance
In the call, Twist Bioscience provided specific financial guidance and metrics indicating the company's performance and expectations. For the first quarter of fiscal year 2025, Twist reported record revenue of $88.7 million, a 24% increase year-over-year. The gross margin also exceeded guidance, rising to 48.3% from 40.5% in the same period of the previous year. The call detailed the revenue breakdown across different segments with SynBio at $34.4 million, showing a 28% increase, and NGS at $48.6 million, a 23% increase year-over-year. The company also highlighted its progress toward adjusted EBITDA breakeven, reporting a loss of $16.3 million, which is an improvement of $11.5 million from the previous year. Looking forward, Twist increased its full fiscal year 2025 revenue guidance to between $372 million and $379 million. The company expects gross margins to improve sequentially, aiming for over 50% by the fourth quarter of fiscal 2025.Twist Bioscience Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Twist Bioscience Stockholders Approve Key Amendments
Positive
Feb 11, 2025
At its Annual Meeting, Twist Bioscience’s stockholders approved several key amendments, including increasing the authorized shares by 100,000,000 and allowing officer exculpation under Delaware law. These changes, effective February 10, 2025, were accompanied by the election of three directors, approval of executive compensation, and ratification of Ernst & Young LLP as the accounting firm for the fiscal year ending September 30, 2025. The amendments are expected to impact the company’s operational flexibility and governance structure positively.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.