In the world of growth stocks, NASDAQ:DOCU shines as a value proposition.

Last update: Apr 25, 2024

Our stock screening tool has pinpointed DOCUSIGN INC (NASDAQ:DOCU) as a growth stock that isn't overvalued. NASDAQ:DOCU is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Evaluating Growth: NASDAQ:DOCU

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:DOCU scores a 7 out of 10:

DOCU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.57%, which is quite impressive.
Measured over the past years, DOCU shows a very strong growth in Earnings Per Share. The EPS has been growing by 97.30% on average per year.
Looking at the last year, DOCU shows a quite strong growth in Revenue. The Revenue has grown by 9.77% in the last year.
DOCU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.55% yearly.
Based on estimates for the next years, DOCU will show a quite strong growth in Revenue. The Revenue will grow by 8.51% on average per year.

Valuation Insights: NASDAQ:DOCU

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:DOCU boasts a 5 out of 10:

86.13% of the companies in the same industry are more expensive than DOCU, based on the Price/Earnings ratio.
DOCU is valuated rather cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
87.23% of the companies in the same industry are more expensive than DOCU, based on the Price/Forward Earnings ratio.
Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than 65.69% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DOCU is valued cheaply inside the industry as 91.97% of the companies are valued more expensively.

Unpacking NASDAQ:DOCU's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:DOCU has achieved a 5 out of 10:

An Altman-Z score of 4.01 indicates that DOCU is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.01, DOCU is in the better half of the industry, outperforming 62.41% of the companies in the same industry.
DOCU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:DOCU, the assigned 5 is a significant indicator of profitability:

DOCU has a Return On Assets of 2.49%. This is in the better half of the industry: DOCU outperforms 74.45% of its industry peers.
With a decent Return On Equity value of 6.55%, DOCU is doing good in the industry, outperforming 78.47% of the companies in the same industry.
The Return On Invested Capital of DOCU (3.73%) is better than 76.64% of its industry peers.
The Profit Margin of DOCU (2.68%) is better than 73.36% of its industry peers.
DOCU's Operating Margin of 2.24% is fine compared to the rest of the industry. DOCU outperforms 70.07% of its industry peers.
DOCU has a better Gross Margin (79.27%) than 80.66% of its industry peers.
In the last couple of years the Gross Margin of DOCU has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of DOCU

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.