Twist Bioscience Corp (TWST): A Deep Dive into Its Performance Potential

Unraveling the Factors That Could Limit the Company's Future Growth

Long-established in the Medical Diagnostics & Research industry, Twist Bioscience Corp (TWST, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a daily loss of 4.82%, juxtaposed with a three-month change of 15.38%. Fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Twist Bioscience Corp.


Understanding the GF Score

The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.

Based on the above method, GuruFocus assigned Twist Bioscience Corp the GF Score of 68 out of 100, which signals poor future outperformance potential.

Twist Bioscience Corp: A Snapshot

Twist Bioscience Corp is a synthetic biology company with a market cap of $1.145 billion. It develops a disruptive DNA synthesis platform to industrialize the engineering of biology. The company's DNA synthesis platform utilizes a proprietary semiconductor-based synthetic DNA manufacturing process that synthesizes DNA on silicon instead of on traditional well-plastic plates. This enables the production of high-quality synthetic DNA faster and more affordably, overcoming inefficiencies and powering cost-effective, rapid high-throughput synthesis. Geographically, it derives a majority of its revenue from the United States.


Profitability Concerns

Twist Bioscience Corp's low Profitability rank can also raise warning signals. With a Piotroski F-Score of 2, Twist Bioscience Corp's financial health appears concerning. This score, rooted in Joseph Piotroski's nine-point scale, evaluates a firm's profitability, liquidity, and operating efficiency. Given its rating, Twist Bioscience Corp might be facing challenges in these areas.

Looking Ahead

Considering the company's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential underperformance. While Twist Bioscience Corp has made significant strides in the Medical Diagnostics & Research industry, its current financial health and profitability rank suggest that it may struggle to maintain its historical performance. Investors should keep a close eye on these metrics as they consider their next steps.

GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen


I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.