DOCUSIGN INC (DOCU)
US2561631068 - Common Stock
We assign a fundamental rating of 5 out of 10 to DOCU. DOCU was compared to 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
DOCU had positive earnings in the past year.
In the past year DOCU had a positive cash flow from operations.
DOCU had negative earnings in 4 of the past 5 years.
DOCU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 26.32%, DOCU belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
DOCU's Return On Equity of 50.37% is amongst the best of the industry. DOCU outperforms 97.13% of its industry peers.
DOCU has a Return On Invested Capital of 5.30%. This is in the better half of the industry: DOCU outperforms 75.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.32% | ||
| ROE | 50.37% | ||
| ROIC | 5.3% |
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
DOCU's Profit Margin of 34.56% is amongst the best of the industry. DOCU outperforms 96.06% of its industry peers.
DOCU has a Operating Margin of 5.04%. This is in the better half of the industry: DOCU outperforms 70.97% of its industry peers.
Looking at the Gross Margin, with a value of 79.17%, DOCU is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
DOCU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.04% | ||
| PM (TTM) | 34.56% | ||
| GM | 79.17% |
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
DOCU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DOCU has been increased compared to 1 year ago.
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.
2.2 Solvency
An Altman-Z score of 5.84 indicates that DOCU is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.84, DOCU is doing good in the industry, outperforming 64.87% 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 | 5.84 |
ROIC/WACC0.45
WACC11.77%
2.3 Liquidity
A Current Ratio of 0.84 indicates that DOCU may have some problems paying its short term obligations.
DOCU has a Current ratio of 0.84. This is amonst the worse of the industry: DOCU underperforms 81.00% of its industry peers.
A Quick Ratio of 0.84 indicates that DOCU may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.84, DOCU is doing worse than 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.56% over the past year.
DOCU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 97.30% yearly.
Looking at the last year, DOCU shows a small growth in Revenue. The Revenue has grown by 7.70% 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)25.56%
EPS 3Y50.34%
EPS 5Y97.3%
EPS Q2Q%34.72%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y23.87%
Revenue growth 5Y31.55%
Sales Q2Q%7.03%
3.2 Future
The Earnings Per Share is expected to grow by 6.41% on average over the next years.
DOCU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.13% yearly.
EPS Next Y19.11%
EPS Next 2Y12.19%
EPS Next 3Y9.79%
EPS Next 5Y6.41%
Revenue Next Year7.2%
Revenue Next 2Y6.54%
Revenue Next 3Y6.86%
Revenue Next 5Y6.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 24.00, which indicates a rather expensive current valuation of DOCU.
DOCU's Price/Earnings ratio is rather cheap when compared to the industry. DOCU is cheaper than 80.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. DOCU is around the same levels.
Based on the Price/Forward Earnings ratio of 21.30, the valuation of DOCU can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DOCU indicates a somewhat cheap valuation: DOCU is cheaper than 77.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. DOCU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 21.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than the industry average as 64.52% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DOCU is valued cheaper than 88.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.71 | ||
| EV/EBITDA | 61.91 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DOCU may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)0.25
EPS Next 2Y12.19%
EPS Next 3Y9.79%
5. Dividend
5.1 Amount
No dividends for DOCU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOCUSIGN INC
NASDAQ:DOCU (11/21/2024, 8:23:03 PM)
Premarket: 80.2 +0.05 (+0.06%)80.15
+1.34 (+1.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 21.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.26
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.32% | ||
| ROE | 50.37% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.04% | ||
| PM (TTM) | 34.56% | ||
| GM | 79.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)25.56%
EPS 3Y50.34%
EPS 5Y
EPS Q2Q%
EPS Next Y19.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.7%
Revenue growth 3Y23.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y