DOCUSIGN INC (DOCU) Stock Fundamental Analysis
NASDAQ:DOCU • US2561631068
41.75 USD
-2.73 (-6.14%)
At close: Feb 23, 2026
41.8 USD
+0.05 (+0.12%)
After Hours: 2/23/2026, 8:00:02 PM
Taking everything into account, DOCU scores 6 out of 10 in our fundamental rating. DOCU was compared to 274 industry peers in the Software industry. DOCU has an average financial health and profitability rating. DOCU is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make DOCU suitable for value investing!
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.
- In multiple years DOCU reported negative net income over the last 5 years.
- In the past 5 years DOCU always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of DOCU (7.59%) is better than 78.47% of its industry peers.
- DOCU has a better Return On Equity (15.25%) than 82.12% of its industry peers.
- DOCU has a Return On Invested Capital of 9.75%. This is amongst the best in the industry. DOCU outperforms 83.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 15.25% | ||
| ROIC | 9.75% |
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
- Looking at the Profit Margin, with a value of 9.57%, DOCU is in the better half of the industry, outperforming 69.71% of the companies in the same industry.
- DOCU has a Operating Margin of 8.59%. This is in the better half of the industry: DOCU outperforms 72.63% of its industry peers.
- DOCU's Gross Margin of 79.31% is fine compared to the rest of the industry. DOCU outperforms 78.47% of its industry peers.
- 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 | 8.59% | ||
| PM (TTM) | 9.57% | ||
| GM | 79.31% |
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.
- DOCU has less shares outstanding than it did 1 year ago.
- 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 2.96. This is not the best score and indicates that DOCU is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.96, DOCU is in the better half of the industry, outperforming 64.60% 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 | 2.96 |
ROIC/WACC0.88
WACC11.02%
2.3 Liquidity
- A Current Ratio of 0.73 indicates that DOCU may have some problems paying its short term obligations.
- DOCU's Current ratio of 0.73 is on the low side compared to the rest of the industry. DOCU is outperformed by 87.23% of its industry peers.
- DOCU has a Quick Ratio of 0.73. 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 worse Quick ratio (0.73) than 87.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- DOCU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.96%.
- 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 8.45% in the last year.
- DOCU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.04% yearly.
EPS 1Y (TTM)6.96%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%12.22%
Revenue 1Y (TTM)8.45%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.42%
3.2 Future
- Based on estimates for the next years, DOCU will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.69% on average per year.
- DOCU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.97% yearly.
EPS Next Y8.79%
EPS Next 2Y8.77%
EPS Next 3Y9.1%
EPS Next 5Y8.69%
Revenue Next Year8.37%
Revenue Next 2Y7.59%
Revenue Next 3Y7.63%
Revenue Next 5Y6.97%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.31 indicates a reasonable valuation of DOCU.
- DOCU's Price/Earnings ratio is rather cheap when compared to the industry. DOCU is cheaper than 84.67% of the companies in the same industry.
- DOCU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.64.
- DOCU is valuated reasonably with a Price/Forward Earnings ratio of 9.94.
- Based on the Price/Forward Earnings ratio, DOCU is valued cheaper than 84.31% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.75, DOCU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than the industry average as 71.53% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, DOCU is valued cheaply inside the industry as 92.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.46 | ||
| EV/EBITDA | 20.05 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- DOCU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.29
PEG (5Y)0.18
EPS Next 2Y8.77%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
- No dividends for DOCU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
41.75
-2.73 (-6.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-04 2025-12-04/amc
Earnings (Next)03-05 2026-03-05/amc
Inst Owners86.69%
Inst Owner Change-1.53%
Ins Owners0.5%
Ins Owner Change0.59%
Market Cap8.36B
Revenue(TTM)3.16B
Net Income(TTM)302.27M
Analysts71.72
Price Target87.12 (108.67%)
Short Float %4.47%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)7.48%
Min EPS beat(2)6.77%
Max EPS beat(2)8.2%
EPS beat(4)3
Avg EPS beat(4)5.78%
Min EPS beat(4)-0.64%
Max EPS beat(4)8.79%
EPS beat(8)7
Avg EPS beat(8)7.57%
EPS beat(12)11
Avg EPS beat(12)11.53%
EPS beat(16)13
Avg EPS beat(16)9.6%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)0.61%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-0.57%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-0.39%
Revenue beat(12)4
Avg Revenue beat(12)-0.07%
Revenue beat(16)7
Avg Revenue beat(16)0.13%
PT rev (1m)0%
PT rev (3m)-9.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)0%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 9.94 | ||
| P/S | 2.65 | ||
| P/FCF | 8.46 | ||
| P/OCF | 7.63 | ||
| P/B | 4.22 | ||
| P/tB | 5.71 | ||
| EV/EBITDA | 20.05 |
EPS(TTM)3.69
EY8.84%
EPS(NY)4.2
Fwd EY10.06%
FCF(TTM)4.93
FCFY11.82%
OCF(TTM)5.47
OCFY13.1%
SpS15.77
BVpS9.89
TBVpS7.31
PEG (NY)1.29
PEG (5Y)0.18
Graham Number28.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 15.25% | ||
| ROCE | 12.34% | ||
| ROIC | 9.75% | ||
| ROICexc | 15.77% | ||
| ROICexgc | 25.5% | ||
| OM | 8.59% | ||
| PM (TTM) | 9.57% | ||
| GM | 79.31% | ||
| FCFM | 31.27% |
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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 91.05% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 281.19% | ||
| Profit Quality | 326.83% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.96 |
F-Score7
WACC11.02%
ROIC/WACC0.88
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)6.96%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%12.22%
EPS Next Y8.79%
EPS Next 2Y8.77%
EPS Next 3Y9.1%
EPS Next 5Y8.69%
Revenue 1Y (TTM)8.45%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.42%
Revenue Next Year8.37%
Revenue Next 2Y7.59%
Revenue Next 3Y7.63%
Revenue Next 5Y6.97%
EBIT growth 1Y47.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year21.68%
EBIT Next 3Y12.03%
EBIT Next 5Y-3.95%
FCF growth 1Y31.45%
FCF growth 3Y27.4%
FCF growth 5Y83.99%
OCF growth 1Y29.53%
OCF growth 3Y26.17%
OCF growth 5Y54.46%
DOCUSIGN INC / DOCU FAQ
What is the ChartMill fundamental rating of DOCUSIGN INC (DOCU) stock?
ChartMill assigns a fundamental rating of 6 / 10 to DOCU.
What is the valuation status of DOCUSIGN INC (DOCU) stock?
ChartMill assigns a valuation rating of 8 / 10 to DOCUSIGN INC (DOCU). This can be considered as Undervalued.
How profitable is DOCUSIGN INC (DOCU) stock?
DOCUSIGN INC (DOCU) has a profitability rating of 6 / 10.
What is the earnings growth outlook for DOCUSIGN INC?
The Earnings per Share (EPS) of DOCUSIGN INC (DOCU) is expected to grow by 8.79% in the next year.