68.87 USD
+0.91 (+1.34%)
69.27 USD
+0.4 (+0.58%)
Taking everything into account, DOCU scores 5 out of 10 in our fundamental rating. DOCU was compared to 280 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DOCU was profitable.
DOCU had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 7.11%, DOCU is doing good in the industry, outperforming 77.50% of the companies in the same industry.
DOCU has a Return On Equity of 14.13%. This is amongst the best in the industry. DOCU outperforms 81.07% of its industry peers.
DOCU has a better Return On Invested Capital (8.89%) than 81.43% 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
DOCU has a better Profit Margin (9.08%) than 70.71% of its industry peers.
The Operating Margin of DOCU (7.90%) is better than 72.14% 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 80.00% 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
DOCU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 4.54. 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 4.54, DOCU is in the better half of the industry, outperforming 69.64% 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 | 4.54 |
ROIC/WACC0.81
WACC10.98%
2.3 Liquidity
A Current Ratio of 0.74 indicates that DOCU may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.74, DOCU is doing worse than 86.07% of the companies in the same industry.
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.
DOCU has a Quick ratio of 0.74. This is amonst the worse of the industry: DOCU underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.19% over the past year.
DOCU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.84% yearly.
DOCU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.29%.
DOCU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.04% yearly.
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
The Earnings Per Share is expected to grow by 8.07% on average over the next years. This is quite good.
DOCU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.67% yearly.
EPS Next Y5.86%
EPS Next 2Y7.63%
EPS Next 3Y9.17%
EPS Next 5Y8.07%
Revenue Next Year7.91%
Revenue Next 2Y7.34%
Revenue Next 3Y7.75%
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 19.24 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 75.71% of the companies in the same industry.
DOCU is valuated rather cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.75, which indicates a correct valuation of DOCU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DOCU indicates a somewhat cheap valuation: DOCU is cheaper than 78.21% of the companies listed in the same industry.
DOCU is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DOCU indicates a somewhat cheap valuation: DOCU is cheaper than 67.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DOCU is valued cheaply inside the industry as 86.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.8 | ||
| EV/EBITDA | 35.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DOCU may justify a higher PE ratio.
PEG (NY)3.28
PEG (5Y)0.31
EPS Next 2Y7.63%
EPS Next 3Y9.17%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68.87
+0.91 (+1.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.29%
Inst Owner Change0.61%
Ins Owners0.48%
Ins Owner Change0.84%
Market Cap13.85B
Revenue(TTM)3.10B
Net Income(TTM)280.97M
Analysts71.72
Price Target96.58 (40.24%)
Short Float %2.38%
Short Ratio1.59
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%
PT rev (3m)5.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.26%
EPS NY rev (1m)0%
EPS NY rev (3m)2.99%
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 | 19.24 | ||
| Fwd PE | 16.75 | ||
| P/S | 4.47 | ||
| P/FCF | 14.8 | ||
| P/OCF | 13.32 | ||
| P/B | 6.97 | ||
| P/tB | 9.44 | ||
| EV/EBITDA | 35.43 |
EPS(TTM)3.58
EY5.2%
EPS(NY)4.11
Fwd EY5.97%
FCF(TTM)4.65
FCFY6.76%
OCF(TTM)5.17
OCFY7.51%
SpS15.39
BVpS9.89
TBVpS7.3
PEG (NY)3.28
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 | 4.54 |
F-Score7
WACC10.98%
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 3Y9.17%
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 3Y7.75%
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 19.24 and the Price/Book (PB) ratio is 6.97.
How financially healthy is DOCUSIGN INC?
The financial health rating of DOCUSIGN INC (DOCU) is 5 / 10.