DOCUSIGN INC (DOCU)
US2561631068 - Common Stock
Overall DOCU gets a fundamental rating of 5 out of 10. We evaluated DOCU against 279 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
In the past year DOCU was profitable.
DOCU had a positive operating cash flow in the past year.
In the past 5 years DOCU reported 4 times negative net income.
DOCU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DOCU has a better Return On Assets (26.83%) than 97.85% of its industry peers.
Looking at the Return On Equity, with a value of 50.85%, DOCU belongs to the top of the industry, outperforming 96.42% of the companies in the same industry.
DOCU has a Return On Invested Capital of 6.63%. This is amongst the best in the industry. DOCU outperforms 80.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.83% | ||
| ROE | 50.85% | ||
| ROIC | 6.63% |
ROA(3y)-1.17%
ROA(5y)-4.99%
ROE(3y)-11.55%
ROE(5y)-29.5%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DOCU (34.73%) is better than 95.70% of its industry peers.
DOCU has a Operating Margin of 6.25%. This is in the better half of the industry: DOCU outperforms 73.12% of its industry peers.
DOCU's Gross Margin of 79.08% is fine compared to the rest of the industry. DOCU outperforms 77.06% of its industry peers.
In the last couple of years the Gross Margin of DOCU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.25% | ||
| PM (TTM) | 34.73% | ||
| GM | 79.08% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.9%
GM growth 5Y1.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DOCU is destroying value.
DOCU has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DOCU has been increased compared to 5 years ago.
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
An Altman-Z score of 6.82 indicates that DOCU is not in any danger for bankruptcy at the moment.
The Altman-Z score of DOCU (6.82) is better than 70.61% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.82 |
ROIC/WACC0.57
WACC11.67%
2.3 Liquidity
DOCU has a Current Ratio of 0.83. 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 Current ratio (0.83) than 81.36% of its industry peers.
DOCU has a Quick Ratio of 0.83. This is a bad value and indicates that DOCU is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DOCU (0.83) is worse than 81.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.79% over the past year.
The Earnings Per Share has been growing by 97.30% on average over the past years. This is a very strong growth
Looking at the last year, DOCU shows a small growth in Revenue. The Revenue has grown by 7.52% in the last year.
The Revenue has been growing by 31.55% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)19.79%
EPS 3Y50.34%
EPS 5Y97.3%
EPS Q2Q%13.92%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y23.87%
Revenue growth 5Y31.55%
Sales Q2Q%7.77%
3.2 Future
The Earnings Per Share is expected to grow by 7.15% on average over the next years.
The Revenue is expected to grow by 6.58% on average over the next years.
EPS Next Y20.69%
EPS Next 2Y12.91%
EPS Next 3Y11.46%
EPS Next 5Y7.15%
Revenue Next Year7.74%
Revenue Next 2Y7.08%
Revenue Next 3Y7.33%
Revenue Next 5Y6.58%
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
DOCU is valuated quite expensively with a Price/Earnings ratio of 27.37.
Based on the Price/Earnings ratio, DOCU is valued a bit cheaper than the industry average as 74.55% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DOCU to the average of the S&P500 Index (27.73), we can say DOCU is valued inline with the index average.
DOCU is valuated rather expensively with a Price/Forward Earnings ratio of 24.77.
Based on the Price/Forward Earnings ratio, DOCU is valued a bit cheaper than 73.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, DOCU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.37 | ||
| Fwd PE | 24.77 |
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 65.59% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DOCU is valued cheaper than 85.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.45 | ||
| EV/EBITDA | 62.47 |
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)1.32
PEG (5Y)0.28
EPS Next 2Y12.91%
EPS Next 3Y11.46%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOCUSIGN INC
NASDAQ:DOCU (12/20/2024, 8:05:43 PM)
After market: 94.85 +0.44 (+0.47%)94.41
+0.26 (+0.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners80.78%
Inst Owner Change2.26%
Ins Owners0.39%
Ins Owner Change-0.96%
Market Cap19.07B
Analysts66.9
Price Target67.6 (-28.4%)
Short Float %5.84%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)9.97%
Min EPS beat(2)1.49%
Max EPS beat(2)18.44%
EPS beat(4)4
Avg EPS beat(4)9.36%
Min EPS beat(4)1.49%
Max EPS beat(4)18.44%
EPS beat(8)8
Avg EPS beat(8)14.41%
EPS beat(12)10
Avg EPS beat(12)10.88%
EPS beat(16)14
Avg EPS beat(16)18.13%
Revenue beat(2)0
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)-0.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.11%
Revenue beat(12)5
Avg Revenue beat(12)0.17%
Revenue beat(16)9
Avg Revenue beat(16)0.93%
PT rev (1m)2.32%
PT rev (3m)5.94%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)1.32%
EPS NY rev (3m)9.03%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.37 | ||
| Fwd PE | 24.77 | ||
| P/S | 6.55 | ||
| P/FCF | 21.45 | ||
| P/OCF | 19.46 | ||
| P/B | 9.59 | ||
| P/tB | 13.15 | ||
| EV/EBITDA | 62.47 |
EPS(TTM)3.45
EY3.65%
EPS(NY)3.81
Fwd EY4.04%
FCF(TTM)4.4
FCFY4.66%
OCF(TTM)4.85
OCFY5.14%
SpS14.42
BVpS9.85
TBVpS7.18
PEG (NY)1.32
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.83% | ||
| ROE | 50.85% | ||
| ROCE | 8.39% | ||
| ROIC | 6.63% | ||
| ROICexc | 11.71% | ||
| ROICexgc | 20.85% | ||
| OM | 6.25% | ||
| PM (TTM) | 34.73% | ||
| GM | 79.08% | ||
| FCFM | 30.53% |
ROA(3y)-1.17%
ROA(5y)-4.99%
ROE(3y)-11.55%
ROE(5y)-29.5%
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
ROICexcg growth 3YN/A
ROICexcg 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 3Y1.9%
GM growth 5Y1.8%
F-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 88.35% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 343.98% | ||
| Profit Quality | 87.91% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 6.82 |
F-Score5
WACC11.67%
ROIC/WACC0.57
Cap/Depr(3y)87.4%
Cap/Depr(5y)104.3%
Cap/Sales(3y)3.12%
Cap/Sales(5y)4.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.79%
EPS 3Y50.34%
EPS 5Y97.3%
EPS Q2Q%13.92%
EPS Next Y20.69%
EPS Next 2Y12.91%
EPS Next 3Y11.46%
EPS Next 5Y7.15%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y23.87%
Revenue growth 5Y31.55%
Sales Q2Q%7.77%
Revenue Next Year7.74%
Revenue Next 2Y7.08%
Revenue Next 3Y7.33%
Revenue Next 5Y6.58%
EBIT growth 1Y250.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.54%
EBIT Next 3Y15.68%
EBIT Next 5Y11.7%
FCF growth 1Y130.15%
FCF growth 3Y60.49%
FCF growth 5Y80.97%
OCF growth 1Y114.22%
OCF growth 3Y48.85%
OCF growth 5Y66.7%