DOCUSIGN INC (DOCU) Fundamental Analysis & Valuation

NASDAQ:DOCU • US2561631068

Current stock price

45.71 USD
-1.47 (-3.12%)
At close:
45.8 USD
+0.09 (+0.2%)
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.
  • The reported net income has been mixed in the past 5 years: DOCU reported negative net income in multiple 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

  • DOCU has a Return On Assets of 7.31%. This is amongst the best in the industry. DOCU outperforms 80.94% of its industry peers.
  • DOCU's Return On Equity of 16.12% is amongst the best of the industry. DOCU outperforms 84.53% of its industry peers.
  • DOCU has a better Return On Invested Capital (12.13%) than 88.49% of its industry peers.
  • DOCU had an Average Return On Invested Capital over the past 3 years of 8.65%. This 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 73.02% of its industry peers.
  • The Operating Margin of DOCU (9.27%) is better than 75.90% of its industry peers.
  • The Gross Margin of DOCU (79.40%) is better than 79.50% of its industry peers.
  • DOCU's Gross Margin has been stable in the last couple of years.
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

  • DOCU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • DOCU has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, DOCU has more shares outstanding
  • 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 2.68 indicates that DOCU is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.68, DOCU is in the better half of the industry, outperforming 63.31% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.68
ROIC/WACC1.1
WACC11.02%
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

  • A Current Ratio of 0.73 indicates that DOCU may have some problems paying its short term obligations.
  • With a Current ratio value of 0.73, DOCU is not doing good in the industry: 87.41% of the companies in the same industry are doing better.
  • 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.
  • Looking at the Quick ratio, with a value of 0.73, DOCU is doing worse than 87.05% of the companies in the same industry.
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

  • DOCU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.17%, which is quite good.
  • DOCU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.27% yearly.
  • The Revenue has grown by 8.16% in the past year. This is quite good.
  • DOCU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.25% yearly.
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

  • Based on estimates for the next years, DOCU will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.73% on average per year.
  • The Revenue is expected to grow by 6.52% on average over the next years.
EPS Next Y9.27%
EPS Next 2Y9.26%
EPS Next 3Y8.74%
EPS Next 5Y8.73%
Revenue Next Year7.42%
Revenue Next 2Y7.59%
Revenue Next 3Y8.32%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • The Price/Earnings ratio is 11.90, which indicates a very decent valuation of DOCU.
  • DOCU's Price/Earnings ratio is rather cheap when compared to the industry. DOCU is cheaper than 85.25% of the companies in the same industry.
  • DOCU is valuated cheaply when we compare the Price/Earnings ratio to 24.88, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 10.89, the valuation of DOCU can be described as very reasonable.
  • 82.01% 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 22.19, DOCU is valued rather cheaply.
Industry RankSector Rank
PE 11.9
Fwd PE 10.89
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 73.74% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, DOCU is valued cheaper than 90.65% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.65
EV/EBITDA 20.06
DOCU Per share dataDOCU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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)1.28
PEG (5Y)0.35
EPS Next 2Y9.26%
EPS Next 3Y8.74%

More info and screens

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

0

5. DOCU Dividend Analysis

5.1 Amount

  • No dividends for DOCU!.
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 (3/27/2026, 8:12:20 PM)

After market: 45.8 +0.09 (+0.2%)

45.71

-1.47 (-3.12%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-17
Earnings (Next)06-03
Inst Owners85.86%
Inst Owner Change-1.17%
Ins Owners0.47%
Ins Owner Change0.53%
Market Cap9.15B
Revenue(TTM)3.22B
Net Income(TTM)309.08M
Analysts71.03
Price Target65.7 (43.73%)
Short Float %7.52%
Short Ratio3.17
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)-7.23%
PT rev (3m)-13.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.37%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
Industry RankSector Rank
PE 11.9
Fwd PE 10.89
P/S 2.84
P/FCF 8.65
P/OCF 7.86
P/B 4.77
P/tB 6.55
EV/EBITDA 20.06
EPS(TTM)3.84
EY8.4%
EPS(NY)4.2
Fwd EY9.18%
FCF(TTM)5.29
FCFY11.56%
OCF(TTM)5.82
OCFY12.73%
SpS16.08
BVpS9.58
TBVpS6.98
PEG (NY)1.28
PEG (5Y)0.35
Graham Number28.76
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 2.68
F-Score7
WACC11.02%
ROIC/WACC1.1
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 Y9.27%
EPS Next 2Y9.26%
EPS Next 3Y8.74%
EPS Next 5Y8.73%
Revenue 1Y (TTM)8.16%
Revenue growth 3Y8.57%
Revenue growth 5Y17.25%
Sales Q2Q%7.81%
Revenue Next Year7.42%
Revenue Next 2Y7.59%
Revenue Next 3Y8.32%
Revenue Next 5Y6.52%
EBIT growth 1Y27.6%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year23.45%
EBIT Next 3YN/A
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.


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 9.27% in the next year.