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Twist Bioscience (TWST)
:TWST
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Twist Bioscience
(NASDAQ:TWST)
49Neutral
Positive Factors
Competitive Advantage
Twist Bioscience's low revenue exposure to China and limited exposure to US academic funding provides a competitive advantage.
Product Development
Multiple new product launches/improvements are already gaining traction and offer multiple new avenues for upside to current estimates.
Revenue and Growth
TWST delivered a slight beat, with FY1Q25 revenue exceeding expectations and gross margin coming in particularly strong.
Negative Factors
Market Share Concerns
There are questions around TWST's continued ability to take market share at current levels, given an uncertain sector backdrop.
Regulatory Environment
The guide implies significant deceleration, which is viewed as prudent in a changing regulatory environment.
Sector Outlook
The outlook for the sector is likely to weigh on the shares in the near-medium term until R&D growth across pharma is more clear.
Twist Bioscience (TWST) vs. S&P 500 (SPY)
Market Cap
$2.34B
Dividend YieldN/A
Average Volume (3M)1.19M
Price to Earnings (P/E)―
Beta (1Y)2.98
Revenue Growth25.85%
EPS Growth6.06%
CountryUS
Employees923
SectorHealthcare
Sector Strength58
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-3.38
Shares Outstanding59,651,142
10 Day Avg. Volume928,957
30 Day Avg. Volume1,193,300
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.09
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit19.21
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$49.86Price Target Upside27.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Twist Bioscience Business Overview & Revenue Model
Company DescriptionTwist Bioscience Corporation, a synthetic biology company, manufactures and sells synthetic DNA-based products. The company's DNA synthesis platform enables the manufacturing of synthetic DNA by writing DNA on a silicon chip. It offers synthetic DNA-based products, including synthetic genes, tools for sample preparation, antibody libraries for drug discovery and development, and DNA as a digital data storage medium. The company has collaboration agreements with Victorian Clinical Genetic Services; Vivlion GmbH.; Kyowa Kirin Pharmaceutical Research, Inc.; deepCDR Biologics AG; and Centogene N.V to develop advanced sequencing tools. It also has a research collaboration with Boehringer Ingelheim International GmbH to use proprietary antibody libraries to discover therapeutic antibodies against multiple targets. Twist Bioscience Corporation was incorporated in 2013 and is headquartered in South San Francisco, California.
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 strong revenue growth but struggles with persistent losses, cash flow issues, and high leverage, which hinder financial stability.Income Statement
Twist Bioscience has shown significant revenue growth over the years, with a notable increase from 2020 to TTM 2024. However, the company is facing persistent profitability challenges, with negative net income and EBIT margins. The gross profit margin has shown some improvement, but the net profit margin remains deeply negative, indicating ongoing operational inefficiencies and high expenses relative to revenue.45
Neutral
Balance Sheet
The balance sheet reflects a stable equity position with a reasonable equity ratio. However, the company is highly leveraged, with a debt-to-equity ratio indicating significant reliance on debt financing. The return on equity is negative due to the consistent net losses, which is a concern for long-term sustainability.50
Neutral
Cash Flow
Cash flow analysis shows negative operating and free cash flows, highlighting cash burn issues. The free cash flow growth rate is negative, and both operating and free cash flows are less than net income, indicating cash flow challenges in supporting operations and growth. This raises concerns about liquidity and future funding needs.40
Negative
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 312.97M | 245.11M | 203.56M | 132.33M | 90.10M | Gross Profit |
| 133.35M | 89.73M | 84.23M | 51.71M | 28.69M | EBIT |
| -220.83M | -217.16M | -249.02M | -153.26M | -117.58M | EBITDA |
| -176.71M | -174.15M | -191.55M | -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 | |||
| 276.40M | 336.41M | 504.97M | 477.86M | 290.00M | 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 |
| -141.29M | -192.40M | -283.77M | -402.91M | -57.69M | Total Liabilities |
| 141.63M | 152.97M | 171.99M | 121.28M | 62.62M | Stockholders Equity |
| 472.69M | 623.43M | 789.38M | 580.82M | 336.26M |
| 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 |
| -3.07M | 50.61M | -232.93M | 156.16M | -114.65M | Financing Cash Flow |
| 6.89M | 911.00K | 270.53M | 329.18M | 303.73M |
Twist Bioscience Technical Analysis
Positive
39.24
Price Trends
39.46
Negative
44.01
Negative
44.77
Negative
Market Momentum
-0.33
Negative
50.58
Neutral
61.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWST, the sentiment is Positive. The current price of 39.24 is above the 20-day moving average (MA) of 38.15, below the 50-day MA of 39.46, and below the 200-day MA of 44.77, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 61.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.51B | 142.96 | 5.88% | ― | 2.78% | -54.72% | |
61 Neutral | $9.72B | ― | -37.09% | ― | 10.37% | -389.98% | |
60 Neutral | $1.26B | ― | -65.92% | ― | 34.90% | -37.19% | |
57 Neutral | $6.05B | ― | -4584.47% | ― | 28.20% | 13.87% | |
52 Neutral | $5.36B | 3.88 | -42.93% | 2.87% | 17.85% | 1.45% | |
51 Neutral | $12.11B | ― | -30.11% | ― | -2.93% | -4.69% | |
49 Neutral | $2.34B | ― | -37.73% | ― | 25.85% | 6.06% |
* Healthcare Sector Average
Performance Comparison
TWST
Twist Bioscience
39.24
-1.97
-4.78%
EXAS
Exact Sciences
51.55
-10.52
-16.95%
ILMN
Illumina
77.88
-36.73
-32.05%
GH
Guardant Health
46.85
27.97
148.15%
SHC
Sotera Health
12.38
1.36
12.34%
GRAL
GRAIL Inc
35.78
21.48
150.21%
Twist Bioscience Earnings Call Summary
Earnings Call Date:Feb 03, 2025
(Q1-2025)
| % Change Since: -25.07%|
Next Earnings Date:May 05, 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.Q1-2025 Updates
Positive Updates
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%.
Negative Updates
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.