DOCUSIGN INC (DOCU) Fundamental Analysis & Valuation

NASDAQ:DOCU • US2561631068

Current stock price

46.22 USD
+1.2 (+2.67%)
At close:
46.19 USD
-0.03 (-0.06%)
After Hours:

This DOCU fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. DOCU Profitability Analysis

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.
  • Each year in the past 5 years DOCU had a positive operating cash flow.
DOCU Yearly Net Income VS EBIT VS OCF VS FCFDOCU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 500M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 7.31%, DOCU belongs to the top of the industry, outperforming 80.51% of the companies in the same industry.
  • With an excellent Return On Equity value of 16.12%, DOCU belongs to the best of the industry, outperforming 83.09% of the companies in the same industry.
  • The Return On Invested Capital of DOCU (12.13%) is better than 88.24% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for DOCU is below the industry average of 10.92%.
  • The last Return On Invested Capital (12.13%) for DOCU is above the 3 year average (8.65%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.31%
ROE 16.12%
ROIC 12.13%
ROA(3y)12.14%
ROA(5y)6.08%
ROE(3y)25.33%
ROE(5y)6.96%
ROIC(3y)8.65%
ROIC(5y)N/A
DOCU Yearly ROA, ROE, ROICDOCU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 -20 40 -40 -60

1.3 Margins

  • The Profit Margin of DOCU (9.60%) is better than 72.43% of its industry peers.
  • With a decent Operating Margin value of 9.27%, DOCU is doing good in the industry, outperforming 75.37% of the companies in the same industry.
  • With a decent Gross Margin value of 79.40%, DOCU is doing good in the industry, outperforming 78.68% 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 RankSector Rank
OM 9.27%
PM (TTM) 9.6%
GM 79.4%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.28%
GM growth 5Y1.16%
DOCU Yearly Profit, Operating, Gross MarginsDOCU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 50 -50

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. DOCU Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DOCU is still creating some value.
  • Compared to 1 year ago, DOCU has less shares outstanding
  • The number of shares outstanding for DOCU has been increased compared to 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.
DOCU Yearly Shares OutstandingDOCU Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M
DOCU Yearly Total Debt VS Total AssetsDOCU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 2.50 indicates that DOCU is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • DOCU has a Altman-Z score of 2.50. This is comparable to the rest of the industry: DOCU outperforms 59.93% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.5
ROIC/WACC1.14
WACC10.62%
DOCU Yearly LT Debt VS Equity VS FCFDOCU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 500M 1B 1.5B 2B

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.
  • With a Current ratio value of 0.73, DOCU is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
  • 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 87.50% of its industry peers.
Industry RankSector Rank
Current Ratio 0.73
Quick Ratio 0.73
DOCU Yearly Current Assets VS Current LiabilitesDOCU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. DOCU Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 8.17% over the past year.
  • The Earnings Per Share has been growing by 34.27% on average over the past years. This is a very strong growth
  • DOCU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.16%.
  • Measured over the past years, DOCU shows a quite strong growth in Revenue. The Revenue has been growing by 17.25% on average per year.
EPS 1Y (TTM)8.17%
EPS 3Y23.47%
EPS 5Y34.27%
EPS Q2Q%17.44%
Revenue 1Y (TTM)8.16%
Revenue growth 3Y8.57%
Revenue growth 5Y17.25%
Sales Q2Q%7.81%

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 8.73% yearly.
  • Based on estimates for the next years, DOCU will show a small growth in Revenue. The Revenue will grow by 6.52% on average per year.
EPS Next Y18.01%
EPS Next 2Y16.05%
EPS Next 3Y13.35%
EPS Next 5Y8.73%
Revenue Next Year8.7%
Revenue Next 2Y8.01%
Revenue Next 3Y7.61%
Revenue Next 5Y6.52%

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.
DOCU Yearly Revenue VS EstimatesDOCU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 1B 2B 3B 4B 5B
DOCU Yearly EPS VS EstimatesDOCU Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2 4 6

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Find the best growth stocksShow best growing peers

8

4. DOCU Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.04 indicates a correct valuation of DOCU.
  • 86.40% of the companies in the same industry are more expensive than DOCU, based on the Price/Earnings ratio.
  • DOCU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
  • A Price/Forward Earnings ratio of 10.20 indicates a reasonable valuation of DOCU.
  • Based on the Price/Forward Earnings ratio, DOCU is valued cheaper than 85.66% of the companies in the same industry.
  • DOCU is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.24, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.04
Fwd PE 10.2
DOCU Price Earnings VS Forward Price EarningsDOCU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • DOCU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DOCU is cheaper than 74.63% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, DOCU is valued cheaper than 92.65% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.49
EV/EBITDA 18.38
DOCU Per share dataDOCU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • DOCU has a very decent profitability rating, which may justify a higher PE ratio.
  • DOCU's earnings are expected to grow with 13.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)0.35
EPS Next 2Y16.05%
EPS Next 3Y13.35%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DOCU Dividend Analysis

5.1 Amount

  • DOCU does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

DOCU Fundamentals: All Metrics, Ratios and Statistics

DOCUSIGN INC

NASDAQ:DOCU (4/24/2026, 8:00:01 PM)

After market: 46.19 -0.03 (-0.06%)

46.22

+1.2 (+2.67%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-17
Earnings (Next)06-03
Inst Owners88.8%
Inst Owner Change0.73%
Ins Owners0.49%
Ins Owner Change0.68%
Market Cap8.99B
Revenue(TTM)3.22B
Net Income(TTM)309.08M
Analysts70.34
Price Target63.9 (38.25%)
Short Float %9.44%
Short Ratio3.37
Dividend
Industry RankSector 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)6.4%
Min EPS beat(2)4.61%
Max EPS beat(2)8.2%
EPS beat(4)4
Avg EPS beat(4)7.09%
Min EPS beat(4)4.61%
Max EPS beat(4)8.79%
EPS beat(8)7
Avg EPS beat(8)6.18%
EPS beat(12)11
Avg EPS beat(12)10.13%
EPS beat(16)14
Avg EPS beat(16)9.95%
Revenue beat(2)0
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)-0.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-0.89%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-0.49%
Revenue beat(12)3
Avg Revenue beat(12)-0.33%
Revenue beat(16)6
Avg Revenue beat(16)-0.02%
PT rev (1m)-20.93%
PT rev (3m)-26.65%
EPS NQ rev (1m)5.47%
EPS NQ rev (3m)5.4%
EPS NY rev (1m)8%
EPS NY rev (3m)7.9%
Revenue NQ rev (1m)1.41%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)1.19%
Revenue NY rev (3m)1.77%
Valuation
Industry RankSector Rank
PE 12.04
Fwd PE 10.2
P/S 2.79
P/FCF 8.49
P/OCF 7.71
P/B 4.69
P/tB 6.43
EV/EBITDA 18.38
EPS(TTM)3.84
EY8.31%
EPS(NY)4.53
Fwd EY9.8%
FCF(TTM)5.44
FCFY11.78%
OCF(TTM)5.99
OCFY12.96%
SpS16.56
BVpS9.86
TBVpS7.19
PEG (NY)0.67
PEG (5Y)0.35
Graham Number29.193 (-36.84%)
Profitability
Industry RankSector Rank
ROA 7.31%
ROE 16.12%
ROCE 13.63%
ROIC 12.13%
ROICexc 20.07%
ROICexgc 33.06%
OM 9.27%
PM (TTM) 9.6%
GM 79.4%
FCFM 32.88%
ROA(3y)12.14%
ROA(5y)6.08%
ROE(3y)25.33%
ROE(5y)6.96%
ROIC(3y)8.65%
ROIC(5y)N/A
ROICexc(3y)19.41%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.72%
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 3Y0.28%
GM growth 5Y1.16%
F-Score7
Asset Turnover0.76
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 91.7%
Cap/Sales 3.31%
Interest Coverage 250
Cash Conversion 280.96%
Profit Quality 342.48%
Current Ratio 0.73
Quick Ratio 0.73
Altman-Z 2.5
F-Score7
WACC10.62%
ROIC/WACC1.14
Cap/Depr(3y)92.95%
Cap/Depr(5y)88.77%
Cap/Sales(3y)3.3%
Cap/Sales(5y)3.18%
Profit Quality(3y)542.61%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.17%
EPS 3Y23.47%
EPS 5Y34.27%
EPS Q2Q%17.44%
EPS Next Y18.01%
EPS Next 2Y16.05%
EPS Next 3Y13.35%
EPS Next 5Y8.73%
Revenue 1Y (TTM)8.16%
Revenue growth 3Y8.57%
Revenue growth 5Y17.25%
Sales Q2Q%7.81%
Revenue Next Year8.7%
Revenue Next 2Y8.01%
Revenue Next 3Y7.61%
Revenue Next 5Y6.52%
EBIT growth 1Y27.6%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year25.91%
EBIT Next 3Y7.22%
EBIT Next 5Y-1.5%
FCF growth 1Y15.03%
FCF growth 3Y35.12%
FCF growth 5Y37.6%
OCF growth 1Y14.52%
OCF growth 3Y31.98%
OCF growth 5Y31.44%

DOCUSIGN INC / DOCU Fundamental Analysis 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 8 / 10 to DOCUSIGN INC (DOCU). This can be considered as Undervalued.


Can you provide the profitability details for DOCUSIGN INC?

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 12.04 and the Price/Book (PB) ratio is 4.69.


How financially healthy is DOCUSIGN INC?

The financial health rating of DOCUSIGN INC (DOCU) is 5 / 10.