56.71 USD
-2.98 (-4.99%)
56.84 USD
+0.13 (+0.23%)
Taking everything into account, DOCU scores 5 out of 10 in our fundamental rating. DOCU was compared to 276 industry peers in the Software industry. Both the profitability and the financial health of DOCU get a neutral evaluation. Nothing too spectacular is happening here. DOCU has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- DOCU had positive earnings in the past year.
- DOCU had a positive operating cash flow in the past year.
- In multiple years DOCU reported negative net income over the last 5 years.
- DOCU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 7.59%, DOCU is doing good in the industry, outperforming 78.26% of the companies in the same industry.
- DOCU has a better Return On Equity (15.25%) than 82.25% of its industry peers.
- DOCU's Return On Invested Capital of 9.75% is amongst the best of the industry. DOCU outperforms 84.06% 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 69.93% 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 73.91% of its industry peers.
- Looking at the Gross Margin, with a value of 79.31%, DOCU is in the better half of the industry, outperforming 78.99% 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 | 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DOCU is destroying value.
- Compared to 1 year ago, DOCU has less shares outstanding
- Compared to 5 years ago, DOCU has more shares outstanding
- DOCU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- DOCU has an Altman-Z score of 3.89. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of DOCU (3.89) is better than 68.12% of its industry peers.
- 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 | 3.89 |
ROIC/WACC0.89
WACC10.99%
2.3 Liquidity
- A Current Ratio of 0.73 indicates that DOCU may have some problems paying its short term obligations.
- DOCU has a Current ratio of 0.73. This is amonst the worse of the industry: DOCU underperforms 86.59% of its industry peers.
- A Quick Ratio of 0.73 indicates that DOCU may have some problems paying its short term obligations.
- DOCU has a worse Quick ratio (0.73) than 86.59% 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.
- Measured over the past years, DOCU shows a very strong growth in Revenue. The Revenue has been growing by 25.04% on average per year.
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
- DOCU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.69% yearly.
- The Revenue is expected to grow by 6.97% on average over the next years.
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
- 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
- With a Price/Earnings ratio of 15.37, DOCU is valued correctly.
- 78.62% of the companies in the same industry are more expensive than DOCU, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.47. DOCU is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 13.50 indicates a correct valuation of DOCU.
- Based on the Price/Forward Earnings ratio, DOCU is valued cheaply inside the industry as 81.88% of the companies are valued more expensively.
- DOCU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.37 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
- DOCU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DOCU is cheaper than 70.29% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DOCU is valued cheaply inside the industry as 89.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.54 | ||
| EV/EBITDA | 27.99 |
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)1.75
PEG (5Y)0.24
EPS Next 2Y8.77%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
- No dividends for DOCU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
56.71
-2.98 (-4.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-04 2025-12-04/amc
Earnings (Next)03-11 2026-03-11/amc
Inst Owners86.69%
Inst Owner Change0.17%
Ins Owners0.5%
Ins Owner Change0.88%
Market Cap11.40B
Revenue(TTM)3.16B
Net Income(TTM)302.27M
Analysts72.41
Price Target88.81 (56.6%)
Short Float %2.76%
Short Ratio2.08
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)-4.53%
PT rev (3m)-8.04%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)2.83%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.37 | ||
| Fwd PE | 13.5 | ||
| P/S | 3.61 | ||
| P/FCF | 11.54 | ||
| P/OCF | 10.41 | ||
| P/B | 5.76 | ||
| P/tB | 7.79 | ||
| EV/EBITDA | 27.99 |
EPS(TTM)3.69
EY6.51%
EPS(NY)4.2
Fwd EY7.41%
FCF(TTM)4.91
FCFY8.66%
OCF(TTM)5.45
OCFY9.61%
SpS15.71
BVpS9.85
TBVpS7.28
PEG (NY)1.75
PEG (5Y)0.24
Graham Number28.6
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 | 3.89 |
F-Score7
WACC10.99%
ROIC/WACC0.89
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 Year23.02%
EBIT Next 3Y12.06%
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 5 / 10 to DOCU.
What is the valuation status of DOCUSIGN INC (DOCU) stock?
ChartMill assigns a valuation rating of 6 / 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.
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.