DOCUSIGN INC (DOCU) Stock Fundamental Analysis
NASDAQ:DOCU - Nasdaq - US2561631068 - Common Stock - Currency: USD
Overall DOCU gets a fundamental rating of 5 out of 10. We evaluated DOCU against 282 industry peers in the Software industry. DOCU has only an average score on both its financial health and profitability. DOCU has a decent growth rate and is not valued too expensively.
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.
DOCU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DOCU's Return On Assets of 28.02% is amongst the best of the industry. DOCU outperforms 97.16% of its industry peers.
DOCU has a Return On Equity of 54.90%. This is amongst the best in the industry. DOCU outperforms 96.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.63%, DOCU belongs to the top of the industry, outperforming 83.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.02% | ||
| ROE | 54.9% | ||
| ROIC | 8.63% |
ROA(3y)8.62%
ROA(5y)2.54%
ROE(3y)14.69%
ROE(5y)-11.21%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DOCU's Profit Margin of 36.50% is amongst the best of the industry. DOCU outperforms 96.45% of its industry peers.
Looking at the Operating Margin, with a value of 7.96%, DOCU is in the better half of the industry, outperforming 74.47% of the companies in the same industry.
The Gross Margin of DOCU (79.23%) is better than 78.37% of its industry peers.
DOCU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.96% | ||
| PM (TTM) | 36.5% | ||
| GM | 79.23% |
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.
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.
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 5.17. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
DOCU's Altman-Z score of 5.17 is fine compared to the rest of the industry. DOCU outperforms 70.57% 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 | 5.17 |
ROIC/WACC0.97
WACC8.93%
2.3 Liquidity
A Current Ratio of 0.79 indicates that DOCU may have some problems paying its short term obligations.
With a Current ratio value of 0.79, DOCU is not doing good in the industry: 82.62% of the companies in the same industry are doing better.
DOCU has a Quick Ratio of 0.79. 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 Quick ratio (0.79) than 82.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
DOCU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.48%, which is quite good.
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 small growth in Revenue. The Revenue has grown by 7.85% in the last year.
The Revenue has been growing by 25.04% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)17.48%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%9.76%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%7.61%
3.2 Future
Based on estimates for the next years, DOCU will show a small growth in Earnings Per Share. The EPS will grow by 7.77% on average per year.
DOCU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.40% yearly.
EPS Next Y2.57%
EPS Next 2Y5.47%
EPS Next 3Y8.68%
EPS Next 5Y7.77%
Revenue Next Year6.65%
Revenue Next 2Y6.57%
Revenue Next 3Y7.8%
Revenue Next 5Y7.4%
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
DOCU is valuated rather expensively with a Price/Earnings ratio of 21.46.
Based on the Price/Earnings ratio, DOCU is valued a bit cheaper than the industry average as 78.72% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DOCU to the average of the S&P500 Index (27.15), we can say DOCU is valued slightly cheaper.
The Price/Forward Earnings ratio is 19.72, which indicates a rather expensive current valuation of DOCU.
76.95% of the companies in the same industry are more expensive than DOCU, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, DOCU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 19.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than 69.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DOCU is valued cheaper than 87.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.22 | ||
| EV/EBITDA | 40.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DOCU does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of DOCU may justify a higher PE ratio.
PEG (NY)8.35
PEG (5Y)0.34
EPS Next 2Y5.47%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
77.89
+1.42 (+1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.38%
Inst Owner Change-3.09%
Ins Owners0.41%
Ins Owner Change0.59%
Market Cap15.77B
Analysts69.66
Price Target91.31 (17.23%)
Short Float %3.44%
Short Ratio2.37
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)1
Avg EPS beat(2)4.07%
Min EPS beat(2)-0.64%
Max EPS beat(2)8.79%
EPS beat(4)3
Avg EPS beat(4)7.02%
Min EPS beat(4)-0.64%
Max EPS beat(4)18.44%
EPS beat(8)7
Avg EPS beat(8)9.41%
EPS beat(12)11
Avg EPS beat(12)13.26%
EPS beat(16)13
Avg EPS beat(16)11.16%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)0.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)0.07%
Revenue beat(8)1
Avg Revenue beat(8)-0.52%
Revenue beat(12)5
Avg Revenue beat(12)0.12%
Revenue beat(16)8
Avg Revenue beat(16)0.39%
PT rev (1m)-3.51%
PT rev (3m)-7.87%
EPS NQ rev (1m)2.41%
EPS NQ rev (3m)2.41%
EPS NY rev (1m)2.03%
EPS NY rev (3m)1.89%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 19.72 | ||
| P/S | 5.2 | ||
| P/FCF | 17.22 | ||
| P/OCF | 15.56 | ||
| P/B | 7.83 | ||
| P/tB | 10.59 | ||
| EV/EBITDA | 40.15 |
EPS(TTM)3.63
EY4.66%
EPS(NY)3.95
Fwd EY5.07%
FCF(TTM)4.52
FCFY5.81%
OCF(TTM)5.01
OCFY6.43%
SpS14.97
BVpS9.95
TBVpS7.36
PEG (NY)8.35
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.02% | ||
| ROE | 54.9% | ||
| ROCE | 10.93% | ||
| ROIC | 8.63% | ||
| ROICexc | 15.15% | ||
| ROICexgc | 26% | ||
| OM | 7.96% | ||
| PM (TTM) | 36.5% | ||
| GM | 79.23% | ||
| FCFM | 30.22% |
ROA(3y)8.62%
ROA(5y)2.54%
ROE(3y)14.69%
ROE(5y)-11.21%
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 3Y0.53%
GM growth 5Y1.07%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 86.09% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 285.76% | ||
| Profit Quality | 82.81% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 5.17 |
F-Score6
WACC8.93%
ROIC/WACC0.97
Cap/Depr(3y)92.4%
Cap/Depr(5y)93.61%
Cap/Sales(3y)3.23%
Cap/Sales(5y)3.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.48%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%9.76%
EPS Next Y2.57%
EPS Next 2Y5.47%
EPS Next 3Y8.68%
EPS Next 5Y7.77%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%7.61%
Revenue Next Year6.65%
Revenue Next 2Y6.57%
Revenue Next 3Y7.8%
Revenue Next 5Y7.4%
EBIT growth 1Y169.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year17.76%
EBIT Next 3Y13.78%
EBIT Next 5Y-3.95%
FCF growth 1Y95.31%
FCF growth 3Y27.4%
FCF growth 5Y83.95%
OCF growth 1Y86.34%
OCF growth 3Y26.17%
OCF growth 5Y54.46%