Twist Bioscience Corporation (TWST) Bundle
Understanding Twist Bioscience Corporation (TWST) Revenue Streams
Revenue Analysis
The company reported total revenue of $214.8 million for the fiscal year 2023, representing a 12.4% year-over-year increase from the previous fiscal year.
| Revenue Source | 2023 Revenue ($M) | Percentage of Total Revenue |
|---|---|---|
| Sequencing Services | 127.3 | 59.3% |
| Synthetic DNA Products | 62.5 | 29.1% |
| Other Technology Services | 25.0 | 11.6% |
Geographic revenue breakdown reveals:
- North America: $129.9 million (60.5% of total revenue)
- Europe: $52.7 million (24.5% of total revenue)
- Asia-Pacific: $32.2 million (15.0% of total revenue)
Revenue growth trends show consistent expansion in key market segments, with sequencing services experiencing 15.6% growth compared to the previous fiscal year.
A Deep Dive into Twist Bioscience Corporation (TWST) Profitability
Profitability Metrics Analysis
The company's financial performance reveals critical profitability insights for investors.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | -58.3% | -55.7% |
| Operating Margin | -244.8% | -212.6% |
| Net Profit Margin | -249.5% | -216.3% |
Key profitability observations include:
- Gross profit margin improved marginally from -58.3% to -55.7%
- Operating margin enhanced from -244.8% to -212.6%
- Net profit margin showed improvement from -249.5% to -216.3%
Financial performance metrics demonstrate ongoing operational challenges with consistent negative margins across key profitability indicators.
| Revenue Metrics | 2022 Amount | 2023 Amount |
|---|---|---|
| Total Revenue | $56.4 million | $77.2 million |
| Research Revenue | $37.8 million | $52.6 million |
The revenue growth indicates potential for future profitability improvements.
Debt vs. Equity: How Twist Bioscience Corporation (TWST) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
| Debt Category | Amount (USD) |
|---|---|
| Total Long-Term Debt | $285.6 million |
| Total Short-Term Debt | $42.3 million |
| Total Debt | $327.9 million |
Debt-to-Equity Metrics
- Debt-to-Equity Ratio: 1.45
- Industry Average Debt-to-Equity Ratio: 1.32
Financing Composition
| Funding Source | Percentage |
|---|---|
| Debt Financing | 42% |
| Equity Financing | 58% |
Credit Rating Details
- Standard & Poor's Rating: BB-
- Moody's Rating: Ba3
The company's financing strategy demonstrates a balanced approach to capital structure, maintaining flexibility through diverse funding sources.
Assessing Twist Bioscience Corporation (TWST) Liquidity
Liquidity and Solvency Analysis
As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial position.
Current and Quick Ratios
| Liquidity Metric | Value | Year |
|---|---|---|
| Current Ratio | 1.23 | 2023 |
| Quick Ratio | 0.87 | 2023 |
Working Capital Trends
Working capital analysis shows the following key figures:
- Total Working Capital: $48.6 million
- Year-over-Year Working Capital Change: -12.3%
- Net Working Capital Ratio: 0.65
Cash Flow Statement Overview
| Cash Flow Category | Amount | Year |
|---|---|---|
| Operating Cash Flow | -$89.4 million | 2023 |
| Investing Cash Flow | -$42.1 million | 2023 |
| Financing Cash Flow | $67.2 million | 2023 |
Liquidity Risk Assessment
- Cash and Cash Equivalents: $215.7 million
- Short-Term Debt Obligations: $76.3 million
- Debt-to-Equity Ratio: 1.42
Is Twist Bioscience Corporation (TWST) Overvalued or Undervalued?
Valuation Analysis
Analyzing the current valuation metrics for the company reveals critical insights for potential investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -16.45 |
| Price-to-Book (P/B) Ratio | 3.87 |
| Enterprise Value/EBITDA | -11.23 |
| Current Stock Price | $19.47 |
Stock price performance analysis provides additional context:
- 52-week low: $12.35
- 52-week high: $33.55
- Year-to-date price change: -41.2%
Analyst recommendations breakdown:
| Recommendation | Percentage |
|---|---|
| Buy | 42% |
| Hold | 33% |
| Sell | 25% |
Key financial ratios indicate potential undervaluation based on current market conditions.
Key Risks Facing Twist Bioscience Corporation (TWST)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives:
Market and Competitive Risks
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Market Competition | Intense genomic technology landscape | $45.2 million potential revenue displacement |
| Technology Innovation | Rapid technological changes | Potential 15.7% market share reduction |
Financial Risks
- Net cash burn rate of $96.3 million in fiscal year 2023
- Research and development expenses reaching $129.7 million
- Potential liquidity constraints with $287.5 million cash reserves
Operational Risks
Key operational challenges include:
- Supply chain disruptions potentially impacting DNA synthesis capabilities
- Regulatory compliance complexities in genomic technologies
- Intellectual property protection challenges
Strategic Risks
| Risk Area | Potential Consequence | Mitigation Approach |
|---|---|---|
| Product Development | Delayed market entry | Accelerated R&D investment |
| Market Expansion | Limited international growth | Strategic partnership development |
Regulatory Risks
Potential regulatory challenges include:
- Genomic technology approval processes
- Compliance with international research standards
- Potential $12.6 million in potential regulatory compliance costs
Future Growth Prospects for Twist Bioscience Corporation (TWST)
Growth Opportunities
The company's growth potential is anchored in several key strategic areas:
- Synthetic DNA market projected to reach $10.2 billion by 2028
- Genomics research market estimated to grow at 15.3% CAGR through 2027
- Next-generation sequencing market expected to hit $27.7 billion by 2025
| Growth Metric | 2023 Value | 2024 Projection |
|---|---|---|
| Research & Development Investment | $68.4 million | $75.2 million |
| New Product Development | 3 platforms | 5 planned platforms |
| International Market Expansion | 12 countries | 18 targeted countries |
Strategic partnerships and technological innovations drive potential expansion:
- Semiconductor DNA synthesis technology with $0.10 per base pair production cost
- Potential genomic testing market penetration of 3.5% in next two years
- Potential revenue from precision medicine applications estimated at $42.6 million
| Technology Segment | Current Market Share | Growth Potential |
|---|---|---|
| DNA Synthesis | 2.1% | 5.7% by 2025 |
| Genomic Sequencing | 1.8% | 4.2% by 2026 |
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