55.82 USD
-0.89 (-1.57%)
56.21 USD
+0.39 (+0.7%)
Taking everything into account, DOCU scores 5 out of 10 in our fundamental rating. DOCU was compared to 277 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 correct valuation and a medium 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.
- Each year in the past 5 years DOCU had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 7.59%, DOCU is doing good in the industry, outperforming 78.34% of the companies in the same industry.
- The Return On Equity of DOCU (15.25%) is better than 82.31% of its industry peers.
- With an excellent Return On Invested Capital value of 9.75%, DOCU belongs to the best of the industry, outperforming 84.12% of the companies in the same industry.
| 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
- DOCU has a better Profit Margin (9.57%) than 70.04% of its industry peers.
- DOCU has a Operating Margin of 8.59%. This is in the better half of the industry: DOCU outperforms 74.01% of its industry peers.
- DOCU has a better Gross Margin (79.31%) than 78.70% of its industry peers.
- DOCU's Gross Margin has been stable in the last couple of years.
| 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.
- The number of shares outstanding for DOCU has been reduced compared to 1 year ago.
- Compared to 5 years ago, DOCU has more shares outstanding
- 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 3.65. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
- DOCU's Altman-Z score of 3.65 is fine compared to the rest of the industry. DOCU outperforms 66.43% 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 | 3.65 |
ROIC/WACC0.88
WACC11.12%
2.3 Liquidity
- DOCU has a Current 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's Current ratio of 0.73 is on the low side compared to the rest of the industry. DOCU is outperformed by 86.64% 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 86.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.96% over the past year.
- Measured over the past years, DOCU shows a very strong growth in Earnings Per Share. The EPS has been growing by 62.84% on average per year.
- DOCU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.45%.
- 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
- 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.
- 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
- 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.
- 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
- With a Price/Earnings ratio of 15.13, DOCU is valued correctly.
- DOCU's Price/Earnings ratio is a bit cheaper when compared to the industry. DOCU is cheaper than 79.78% of the companies in the same industry.
- DOCU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.94.
- Based on the Price/Forward Earnings ratio of 13.29, the valuation of DOCU can be described as correct.
- DOCU's Price/Forward Earnings ratio is rather cheap when compared to the industry. DOCU is cheaper than 82.31% of the companies in the same industry.
- DOCU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 13.29 |
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 70.76% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, DOCU is valued cheaper than 89.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.36 | ||
| EV/EBITDA | 25.99 |
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)1.72
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% |
55.82
-0.89 (-1.57%)
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 Change0.19%
Ins Owners0.5%
Ins Owner Change0.59%
Market Cap11.23B
Revenue(TTM)3.16B
Net Income(TTM)302.27M
Analysts72.41
Price Target87.12 (56.07%)
Short Float %2.73%
Short Ratio1.89
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)-6.34%
PT rev (3m)-9.79%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)2.83%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 13.29 | ||
| P/S | 3.55 | ||
| P/FCF | 11.36 | ||
| P/OCF | 10.24 | ||
| P/B | 5.67 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 25.99 |
EPS(TTM)3.69
EY6.61%
EPS(NY)4.2
Fwd EY7.52%
FCF(TTM)4.91
FCFY8.8%
OCF(TTM)5.45
OCFY9.76%
SpS15.71
BVpS9.85
TBVpS7.28
PEG (NY)1.72
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 | 3.65 |
F-Score7
WACC11.12%
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 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.