DOCUSIGN INC (DOCU) Stock Fundamental Analysis
USA - NASDAQ:DOCU - US2561631068 - Common Stock
69.7 USD
-0.03 (-0.04%)
69.74 USD
+0.04 (+0.06%)
DOCU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. DOCU has only an average score on both its financial health and profitability. DOCU is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DOCU had positive earnings in the past year.
In the past year DOCU had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DOCU reported negative net income in multiple years.
In the past 5 years DOCU always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DOCU (7.11%) is better than 77.11% of its industry peers.
With an excellent Return On Equity value of 14.13%, DOCU belongs to the best of the industry, outperforming 80.63% of the companies in the same industry.
DOCU's Return On Invested Capital of 8.89% is amongst the best of the industry. DOCU outperforms 82.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 14.13% | ||
| ROIC | 8.89% |
ROA(3y)8.62%
ROA(5y)2.54%
ROE(3y)14.69%
ROE(5y)-11.2%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DOCU (9.08%) is better than 71.13% of its industry peers.
DOCU's Operating Margin of 7.90% is fine compared to the rest of the industry. DOCU outperforms 71.48% of its industry peers.
Looking at the Gross Margin, with a value of 79.34%, DOCU is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
In the last couple of years the Gross Margin of DOCU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.9% | ||
| PM (TTM) | 9.08% | ||
| GM | 79.34% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.53%
GM growth 5Y1.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DOCU is destroying value.
Compared to 1 year ago, DOCU has less shares outstanding
DOCU has more shares outstanding than it did 5 years ago.
There is no outstanding debt for DOCU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
DOCU has an Altman-Z score of 4.59. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.59, DOCU is in the better half of the industry, outperforming 69.01% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.59 |
ROIC/WACC0.81
WACC10.99%
2.3 Liquidity
DOCU has a Current Ratio of 0.74. This is a bad value and indicates that DOCU is not financially healthy enough and could expect problems in meeting its short term obligations.
DOCU has a Current ratio of 0.74. This is amonst the worse of the industry: DOCU underperforms 82.75% of its industry peers.
DOCU has a Quick Ratio of 0.74. This is a bad value and indicates that DOCU is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.74, DOCU is doing worse than 82.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
DOCU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.19%.
DOCU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.84% yearly.
Looking at the last year, DOCU shows a quite strong growth in Revenue. The Revenue has grown by 8.29% in the last year.
The Revenue has been growing by 25.04% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)7.19%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%-5.15%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.78%
3.2 Future
DOCU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.07% yearly.
The Revenue is expected to grow by 7.67% on average over the next years.
EPS Next Y5.86%
EPS Next 2Y7.63%
EPS Next 3Y8.85%
EPS Next 5Y8.07%
Revenue Next Year7.91%
Revenue Next 2Y7.34%
Revenue Next 3Y7.72%
Revenue Next 5Y7.67%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.47 indicates a rather expensive valuation of DOCU.
DOCU's Price/Earnings ratio is a bit cheaper when compared to the industry. DOCU is cheaper than 76.41% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, DOCU is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.95, the valuation of DOCU can be described as correct.
Based on the Price/Forward Earnings ratio, DOCU is valued a bit cheaper than the industry average as 78.87% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DOCU to the average of the S&P500 Index (32.68), we can say DOCU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.47 | ||
| Fwd PE | 16.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than 69.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DOCU is valued cheaper than 85.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.98 | ||
| EV/EBITDA | 35.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DOCU does not grow enough to justify the current Price/Earnings ratio.
DOCU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.32
PEG (5Y)0.31
EPS Next 2Y7.63%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
69.7
-0.03 (-0.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.29%
Inst Owner Change-1.38%
Ins Owners0.48%
Ins Owner Change0.84%
Market Cap14.02B
Revenue(TTM)3.10B
Net Income(TTM)280.97M
Analysts71.72
Price Target96.58 (38.57%)
Short Float %2.71%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.78%
Min EPS beat(2)6.77%
Max EPS beat(2)8.79%
EPS beat(4)3
Avg EPS beat(4)4.1%
Min EPS beat(4)-0.64%
Max EPS beat(4)8.79%
EPS beat(8)7
Avg EPS beat(8)9.36%
EPS beat(12)11
Avg EPS beat(12)13.61%
EPS beat(16)13
Avg EPS beat(16)10.63%
Revenue beat(2)2
Avg Revenue beat(2)0.34%
Min Revenue beat(2)0.07%
Max Revenue beat(2)0.61%
Revenue beat(4)2
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-0.38%
Revenue beat(12)5
Avg Revenue beat(12)0.06%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)0.66%
PT rev (3m)5.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.26%
EPS NY rev (1m)0%
EPS NY rev (3m)3.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.47 | ||
| Fwd PE | 16.95 | ||
| P/S | 4.53 | ||
| P/FCF | 14.98 | ||
| P/OCF | 13.48 | ||
| P/B | 7.05 | ||
| P/tB | 9.55 | ||
| EV/EBITDA | 35.91 |
EPS(TTM)3.58
EY5.14%
EPS(NY)4.11
Fwd EY5.9%
FCF(TTM)4.65
FCFY6.68%
OCF(TTM)5.17
OCFY7.42%
SpS15.39
BVpS9.89
TBVpS7.3
PEG (NY)3.32
PEG (5Y)0.31
Graham Number28.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 14.13% | ||
| ROCE | 11.25% | ||
| ROIC | 8.89% | ||
| ROICexc | 14.53% | ||
| ROICexgc | 23.9% | ||
| OM | 7.9% | ||
| PM (TTM) | 9.08% | ||
| GM | 79.34% | ||
| FCFM | 30.23% |
ROA(3y)8.62%
ROA(5y)2.54%
ROE(3y)14.69%
ROE(5y)-11.2%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.53%
GM growth 5Y1.07%
F-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 90.03% | ||
| Cap/Sales | 3.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 288.71% | ||
| Profit Quality | 333.04% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 4.59 |
F-Score7
WACC10.99%
ROIC/WACC0.81
Cap/Depr(3y)92.4%
Cap/Depr(5y)93.61%
Cap/Sales(3y)3.23%
Cap/Sales(5y)3.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.19%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%-5.15%
EPS Next Y5.86%
EPS Next 2Y7.63%
EPS Next 3Y8.85%
EPS Next 5Y8.07%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.78%
Revenue Next Year7.91%
Revenue Next 2Y7.34%
Revenue Next 3Y7.72%
Revenue Next 5Y7.67%
EBIT growth 1Y68.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year19.89%
EBIT Next 3Y11.91%
EBIT Next 5Y-3.95%
FCF growth 1Y70.99%
FCF growth 3Y27.4%
FCF growth 5Y83.99%
OCF growth 1Y63.94%
OCF growth 3Y26.17%
OCF growth 5Y54.46%
DOCUSIGN INC / DOCU FAQ
Can you provide the ChartMill fundamental rating for DOCUSIGN INC?
ChartMill assigns a fundamental rating of 5 / 10 to DOCU.
What is the valuation status for DOCU stock?
ChartMill assigns a valuation rating of 5 / 10 to DOCUSIGN INC (DOCU). This can be considered as Fairly Valued.
How profitable is DOCUSIGN INC (DOCU) stock?
DOCUSIGN INC (DOCU) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for DOCU stock?
The Price/Earnings (PE) ratio for DOCUSIGN INC (DOCU) is 19.47 and the Price/Book (PB) ratio is 7.05.
How financially healthy is DOCUSIGN INC?
The financial health rating of DOCUSIGN INC (DOCU) is 5 / 10.