Twist Bioscience Corporation (TWST)
Valuation Overview•Is Twist Bioscience Corporation Overvalued or Undervalued?
Market price has outpaced base-case intrinsic cash flows, pricing in significant future growth optimism.
Moderate quality score of 53/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is cautious, forecasting potential downside. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
TWST struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($46M) and minimal debt risk.
The company is driving exceptional top-line expansion (22.8% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-33.9%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $110.7M | +20.3% | +22.8% | +33.1% | — | |
| EBITDA | -$39.7M | — | +20.1% | — | — | |
| Net Income | -$44.0M | +62.8% | +29.1% | — | — | |
| EPS (Diluted) | $-0.71 | +63.9% | — | — | — | |
| Free Cash Flow | -$25.5M | -9.3% | +30.6% | +13.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 52.1% | 43.3% | 42.1% | -21.0% |
| Operating Margin | -33.9% | -65.1% | -85.2% | -352.6% |
| Net Margin | -19.8% | -56.9% | -78.6% | -352.0% |
| FCF Margin | -23.2% | -37.2% | -65.6% | -347.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.49 | $-0.62 | -26.5% | ||
| Q1'26 | $-0.48 | $-0.50 | -4.2% | ||
| Q4'25 | $-0.50 | $-0.45 | +10.0% | ||
| Q3'25 | $-0.54 | $-0.47 | +13.0% | ||
| Q2'25 | $-0.56 | $-0.66 | -17.9% | ||
| Q1'25 | $-0.62 | $-0.53 | +14.5% | ||
| Q4'24 | $-0.71 | $-0.59 | +17.4% | ||
| Q3'24 | $-0.79 | $-0.86 | -8.9% |
Total return is +144.0% (1Y), outperforming the benchmark by +119.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +170.3% | +161.0% | — |
| 1Y | +144.0% | +119.0% | — |
| 3YCAGR | +68.7% | +46.1% | — |
| 5YCAGR | -4.7% | -18.6% | — |
| 10YCAGR | +20.1% | +5.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Twist Bioscience Corporation (TWST) valuation, health, and returns.
Twist Bioscience Corporation is estimated to be overvalued under our discounted cash flow framework. overvalued (implying -34.5% downside from DCF intrinsic value of $57.33)
Twist Bioscience Corporation has multiple valuation anchors: DCF Intrinsic Value: $57.33 | Wall Street Analyst Target: $75.00 (implying -14.3% upside). A convergence of these signals offers higher conviction.
Twist Bioscience Corporation displays fair financial health with a composite quality score of 53/100, supported by a Altman Z-Score of 16.7 (safe zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of -26.9%.
Twist Bioscience Corporation does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Twist Bioscience Corporation's current growth trajectory is Decelerating. The company achieved +20.3% 1Y revenue growth and +63.9% 1Y EPS growth, compared to its 3Y revenue CAGR of +22.8%.
Wall Street consensus is Buy based on 13 analysts, beating EPS expectations in 67% of recent quarters with a -2-quarter streak. The consensus price target represents a -14.3% change from current levels.
Investment risks for Twist Bioscience Corporation include: -38.2% 1-year max drawdown, high beta (2.51x market volatility). Volatility risk is characterized by a beta of 2.51x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.