Twist Bioscience Corp (TWST, Financial) has experienced a notable fluctuation in its stock price recently. With a current market capitalization of $2.36 billion, the stock is trading at $40.81, marking a 3.31% decline over the past week. However, looking at a broader timeframe, TWST has seen an impressive 43.85% increase over the past three months. According to the GF Value, the stock is currently modestly undervalued at $51.77, compared to a past GF Value of $59.34, which suggested investors to think twice as it was a possible value trap.
Overview of Twist Bioscience Corp
Twist Bioscience Corp operates within the Medical Diagnostics & Research industry, focusing on the development of a synthetic DNA synthesis platform. This innovative technology is designed to industrialize the engineering of biology, leveraging a proprietary semiconductor-based process. The platform's ability to synthesize DNA on silicon allows for high-quality, rapid, and cost-effective production. The majority of Twist Bioscience's revenue is generated in the United States. The company's unique approach to DNA synthesis positions it at the forefront of the biotech sector, with significant implications for research and development across various fields.
Assessing Profitability
Twist Bioscience's Profitability Rank stands at 3/10, indicating that the company faces challenges in maintaining profitability. The Operating Margin is currently at -78.18%, which is better than 27.56% of its peers. In terms of ROE, TWST is at -30.98%, outperforming 31.82% of competitors. The company's ROA is -25.20%, surpassing 34.18% of industry players, and its ROIC is -49.03%, which is ahead of 28.39% in its industry. These figures suggest that while Twist Bioscience is not currently profitable, it is performing relatively well compared to some of its competitors.
Growth Prospects of Twist Bioscience
The company's Growth Rank is 4/10, reflecting moderate growth prospects. Twist Bioscience has a 3-Year Revenue Growth Rate per Share of 23.30%, higher than 74.24% of similar companies. Its 5-Year Revenue Growth Rate per Share is even more impressive at 31.70%, exceeding 82.63% of competitors. However, the 3-Year EPS without NRI Growth Rate is -3.10%, which is better than 39.31% of the industry, and the 5-Year EPS without NRI Growth Rate is -4.70%, surpassing 29.03% of peers. These growth metrics indicate that while the company's earnings per share growth has been negative, its revenue growth is robust compared to industry standards.
Notable Shareholders in Twist Bioscience
Several prominent investors hold significant stakes in Twist Bioscience. Catherine Wood (Trades, Portfolio) is the leading shareholder with 7,213,257 shares, accounting for 12.48% of the company. Baillie Gifford (Trades, Portfolio) holds 1,094,758 shares, representing 1.89% of Twist Bioscience, while Joel Greenblatt (Trades, Portfolio) owns 55,079 shares, making up 0.1% of the company. These holdings reflect the confidence of seasoned investors in the potential of TWST.
Competitive Landscape
Twist Bioscience operates in a competitive industry, with key players such as OPKO Health Inc (OPK, Financial) with a market cap of $665.697 million, Fulgent Genetics Inc (FLGT, Financial) valued at $711.707 million, and Myriad Genetics Inc (MYGN, Financial) with a market cap of $2.09 billion. These companies, along with TWST, are vying for leadership in the medical diagnostics and research space.
Conclusion
In summary, Twist Bioscience Corp's current valuation status suggests that the stock is modestly undervalued, presenting a potential opportunity for investors. The company's profitability metrics, although negative, are relatively strong within its industry, and its revenue growth rates are particularly promising. With significant holdings by influential investors and a competitive position in the market, Twist Bioscience's future performance warrants attention from value investors seeking opportunities in the biotech sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
