Twist Bioscience (TWST) AI Stock Analysis

• Market Cap: $2.01B
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.82
• Revenue Growth: 25.30%
• EPS Growth: 2.75%
• Country: US
• Employees: 923
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.66
• Shares Outstanding: 59,916,140
• 10 Day Avg. Volume: 1,302,119
• 30 Day Avg. Volume: 1,237,850
• PEG Ratio: -0.31
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.39
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 3.80
• Enterprise Value/Ebitda: -0.87
• 1Y Price Target: $47.75
• Price Target Upside: 42.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 59 Neutral
• Price Target: $34.00 ▲(1.43%Upside)

Twist Bioscience's overall score reflects strong revenue growth and strategic corporate decisions, offset by ongoing profitability challenges and technical indicators showing bearish momentum. The negative valuation metrics further weigh on the score, although positive earnings call sentiment and corporate events provide some optimism.

Positive Factors

Financial Performance

TWST reported a broad-based beat on the topline and gross margins, driven by strength across all the company’s segments.

Market Position

Management suggests that share gains are likely to continue, particularly from China-based competitors.

Operational Strategy

The spin-out of the data storage business, now called Atlas Data Storage, is expected to drive operational expense savings and yield positive adjusted EBITDA.

Negative Factors

End-Market Challenges

There is difficulty for investors to get conviction about the durability of share gains and potential for upside given the challenging Tools and R&D end-market backdrop.

Risk/Reward Profile

The risk/reward profile is viewed as skewed to the downside despite TWST being a market leader in an attractive niche.

Valuation Concerns

Shares are trading at approximately 5 times EV/2026 Sales compared to about 3 times for peers, indicating that the growth outlook may already be priced into shares despite end market challenges.

Twist Bioscience Business Overview & Revenue Model

Company Description

Twist 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 Money

Twist Bioscience generates revenue through the sale of its synthetic DNA products and services. The company's revenue model is largely based on selling custom DNA sequences to customers in diverse industries including pharmaceuticals, biotechnology, agriculture, and academia. Key revenue streams include synthetic genes, NGS tools, and oligo pools. Twist Bioscience also benefits from strategic partnerships and collaborations with other companies and research institutions, which help expand its market reach and enhance its product offerings. Additionally, licensing agreements for its proprietary technology contribute to its earnings. Factors such as advancements in personalized medicine, increased demand for genetic research, and the growing field of synthetic biology significantly bolster the company's revenue potential.

Twist Bioscience Financial Statement Overview

Summary

Twist Bioscience is experiencing robust revenue growth, yet continues to face profitability and cash flow challenges. The balance sheet remains strong with a high equity ratio and low debt utilization, offering some financial stability. Continued focus on improving operational efficiencies and cash flow management will be crucial for long-term profitability.

Income Statement

Twist Bioscience has demonstrated strong revenue growth with a TTM revenue increase of 11.09% over the previous annual period. However, the company is facing profitability challenges, with negative net profit and EBIT margins indicating ongoing operating losses. The gross profit margin of 46.7% in the TTM suggests a solid ability to cover direct costs, but the company's net profit margin remains negative at -54.96%.

Balance Sheet

The company's balance sheet shows a solid equity position with an equity ratio of 73.91% in the TTM, indicating financial stability and relatively low leverage. The debt-to-equity ratio is manageable at 0.18, suggesting conservative use of debt. However, the negative ROE at -43.42% highlights the inability to generate profit from equity capital currently.

Cash Flow

Cash flow analysis reveals a challenging situation with negative operating and free cash flows over the recent periods. The TTM free cash flow to net income ratio and operating cash flow to net income ratio are not favorable, indicating inefficiencies in converting income to cash. However, there is a slight improvement in free cash flow, which is a positive sign.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
347.68M	312.97M	245.11M	203.56M	132.33M	90.10M
	Gross Profit
162.37M	133.35M	89.73M	84.23M	51.71M	28.69M
	EBIT
-201.17M	-220.83M	-217.16M	-249.02M	-153.26M	-117.58M
	EBITDA
-176.51M	-176.71M	-174.15M	-191.55M	-143.91M	-132.09M
	Net Income Common Stockholders
-191.15M	-208.73M	-204.62M	-217.86M	-152.10M	-139.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
257.15M	276.40M	336.41M	504.97M	477.86M	290.00M
	Total Assets
595.62M	614.32M	776.40M	961.38M	702.10M	398.88M
	Total Debt
80.30M	85.03M	94.07M	94.91M	62.92M	35.98M
	Net Debt
-130.14M	-141.29M	-192.40M	-283.77M	-402.91M	-57.69M
	Total Liabilities
155.51M	141.63M	152.97M	171.99M	121.28M	62.62M
	Stockholders Equity
440.11M	472.69M	623.43M	789.38M	580.82M	336.26M
Cash Flow		Free Cash Flow
-65.49M	-69.17M	-170.25M	-226.24M	-139.31M	-152.12M
	Operating Cash Flow
-56.11M	-64.09M	-142.47M	-124.39M	-112.24M	-142.25M
	Investing Cash Flow
-4.96M	-3.07M	50.61M	-232.93M	156.16M	-114.65M
	Financing Cash Flow
27.68M	6.89M	911.00K	270.53M	329.18M	303.73M

Twist Bioscience Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWST, the sentiment is Neutral. The current price of 33.52 is above the 20-day moving average (MA) of 30.87, below the 50-day MA of 34.15, and below the 200-day MA of 42.20, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 70.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TWST.

Twist Bioscience Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRAL	68 Neutral	$1.51B	―	-62.22%	―	30.47%	-26.63%
SHC	61 Neutral	$3.42B	135.68	5.88%	―	2.78%	-54.72%
TWST	59 Neutral	$2.01B	―	-38.22%	―	25.30%	2.75%
EXAS	59 Neutral	$10.19B	―	-36.89%	―	11.57%	-315.25%
GH	57 Neutral	$6.07B	―	-4584.47%	―	28.20%	13.87%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
ILMN	52 Neutral	$13.95B	―	-23.82%	―	-3.47%	25.55%

Twist Bioscience Corporate Events

Twist Bioscience Spins Out DNA Storage Unit

On May 2, 2025, Twist Bioscience Corporation completed a Contribution Agreement with Atlas Data Storage, Inc., securing $155 million in investments by spinning out its DNA data storage product group into an independent company, Atlas Data Storage. This strategic move allows Twist to focus on its core operations while maintaining a stake in the new entity, benefiting from future milestones and royalties. Twist reported record revenue of $92.8 million for the second quarter of fiscal 2025, marking a 23% increase from the previous year, and improved its gross margin to 49.6%. The company expects to achieve adjusted EBITDA breakeven by the end of fiscal 2026, driven by continued growth and innovation.