Twist Bioscience Corp (TWST, Financial), a key player in the Medical Diagnostics & Research industry, has recently seen a notable uptick in its stock performance. Over the past week, the stock price has slightly decreased by 0.34%, settling at $46.67. However, looking at a broader timeline, TWST has experienced a significant surge of 20.29% over the past three months. Currently, the GF Value of the stock stands at $43.91, suggesting that it is Fairly Valued. This is a shift from three months ago when the stock was considered a Possible Value Trap, indicating that investors needed to think twice before investing.
Overview of Twist Bioscience Corp
Twist Bioscience Corp is at the forefront of synthetic biology, utilizing a cutting-edge semiconductor-based synthetic DNA manufacturing process. This innovative approach allows for the synthesis of DNA on silicon rather than traditional plastic wells, significantly enhancing the speed, quality, and cost-effectiveness of DNA production. Predominantly, Twist Bioscience's revenue streams are sourced from the United States, marking its strong presence in the domestic market. 
Assessing Profitability
Despite its innovative technology and market presence, Twist Bioscience faces challenges in profitability. The company's Profitability Rank is currently at 2/10, indicating lower profitability within its industry. The Operating Margin stands at -68.89%, which, although better than 27.8% of its peers, highlights significant losses in operations. Similarly, its Return on Equity (ROE) and Return on Assets (ROA) are -30.64% and -24.78% respectively, each performing better than just over a third of the industry. The Return on Invested Capital (ROIC) is also in the negative at -46.79%. These figures underscore the financial hurdles that Twist Bioscience needs to overcome. 
Growth Prospects
On a brighter note, Twist Bioscience scores a perfect 10/10 on the Growth Rank, reflecting its excellent growth prospects. The company has demonstrated a robust 3-Year Revenue Growth Rate per Share of 23.30% and an even more impressive 5-Year Rate of 31.70%. These metrics are significantly higher than the majority of their industry counterparts. However, the EPS growth rates for the same periods are -3.10% and -4.70%, indicating that revenue growth has not yet translated into profitability. The future looks promising though, with an estimated Total Revenue Growth Rate of 21.20% over the next 3 to 5 years. 
Significant Shareholders
Twist Bioscience's shareholder base includes notable investors such as Catherine Wood (Trades, Portfolio), who holds a significant 12.01% of shares. Following her are Baillie Gifford (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio), holding 2.12% and 0.1% of shares respectively. These major stakeholders underscore the confidence in Twist Bioscience's market strategy and future growth potential.
Competitive Landscape
In comparison to its competitors, Twist Bioscience stands out in terms of market capitalization and growth metrics. OPKO Health Inc (OPK, Financial) and Fulgent Genetics Inc (FLGT, Financial) have market caps of $899.119 million and $667.611 million respectively, while Myriad Genetics Inc (MYGN, Financial) has a significantly higher market cap of $2.27 billion. These companies, like Twist Bioscience, are key players in the Medical Diagnostics & Research industry, each with unique strengths and market strategies.
Conclusion
Twist Bioscience exhibits strong growth metrics, particularly in revenue growth, which is commendable within its industry. However, its profitability metrics are concerning with negative values across ROE, ROA, and ROIC. The stock is currently fairly valued according to GF Value, but investors should consider both the high growth potential and the profitability challenges before making investment decisions. As the company continues to innovate and potentially improve its operational efficiencies, it remains a noteworthy contender in the synthetic biology space.
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.
