61.87 USD
-2.64 (-4.09%)
61.81 USD
-0.06 (-0.1%)
We assign a fundamental rating of 5 out of 10 to DOCU. DOCU was compared to 276 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.
- 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 has a better Return On Assets (7.59%) than 78.26% of its industry peers.
- The Return On Equity of DOCU (15.25%) is better than 82.25% of its industry peers.
- DOCU's Return On Invested Capital of 9.75% is amongst the best of the industry. DOCU outperforms 84.06% of its industry peers.
| 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 Profit Margin of 9.57%. This is in the better half of the industry: DOCU outperforms 69.93% of its industry peers.
- DOCU has a better Operating Margin (8.59%) than 73.91% of its industry peers.
- DOCU's Gross Margin of 79.31% is fine compared to the rest of the industry. DOCU outperforms 78.99% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DOCU is destroying value.
- DOCU has less 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 4.18 indicates that DOCU is not in any danger for bankruptcy at the moment.
- DOCU has a better Altman-Z score (4.18) than 68.84% 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 | 4.18 |
ROIC/WACC0.88
WACC11.03%
2.3 Liquidity
- A Current Ratio of 0.73 indicates that DOCU may have some problems paying its short term obligations.
- The Current ratio of DOCU (0.73) is worse than 86.59% of its industry peers.
- DOCU has a Quick 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 has a Quick ratio of 0.73. This is amonst the worse of the industry: DOCU underperforms 86.59% 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.
- The Earnings Per Share has been growing by 62.84% on average over the past years. This is a very strong growth
- Looking at the last year, DOCU shows a quite strong growth in Revenue. The Revenue has grown by 8.45% in the last year.
- Measured over the past years, DOCU shows a very strong growth in Revenue. The Revenue has been growing by 25.04% on average per year.
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
- Based on estimates for the next years, DOCU will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.69% on average per year.
- 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
- 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
- A Price/Earnings ratio of 16.77 indicates a correct valuation of DOCU.
- DOCU's Price/Earnings ratio is a bit cheaper when compared to the industry. DOCU is cheaper than 77.54% 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 27.33.
- DOCU is valuated correctly with a Price/Forward Earnings ratio of 14.73.
- DOCU's Price/Forward Earnings ratio is rather cheap when compared to the industry. DOCU is cheaper than 80.80% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, DOCU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 14.73 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than the industry average as 69.20% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, DOCU is valued cheaply inside the industry as 88.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.59 | ||
| EV/EBITDA | 30.48 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of DOCU may justify a higher PE ratio.
PEG (NY)1.91
PEG (5Y)0.27
EPS Next 2Y8.77%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
- DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
61.87
-2.64 (-4.09%)
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 Change0.17%
Ins Owners0.5%
Ins Owner Change0.88%
Market Cap12.44B
Revenue(TTM)3.16B
Net Income(TTM)302.27M
Analysts72.41
Price Target88.81 (43.54%)
Short Float %2.76%
Short Ratio2.08
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)-4.53%
PT rev (3m)-8.04%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)2.83%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 14.73 | ||
| P/S | 3.94 | ||
| P/FCF | 12.59 | ||
| P/OCF | 11.36 | ||
| P/B | 6.28 | ||
| P/tB | 8.5 | ||
| EV/EBITDA | 30.48 |
EPS(TTM)3.69
EY5.96%
EPS(NY)4.2
Fwd EY6.79%
FCF(TTM)4.91
FCFY7.94%
OCF(TTM)5.45
OCFY8.81%
SpS15.71
BVpS9.85
TBVpS7.28
PEG (NY)1.91
PEG (5Y)0.27
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 | 4.18 |
F-Score7
WACC11.03%
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.