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 281 industry peers in the Software industry. DOCU has an average financial health and profitability rating. 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.
DOCU had a positive operating cash flow in the past year.
In the past 5 years DOCU reported 4 times negative net income.
DOCU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 26.83%, DOCU belongs to the best of the industry, outperforming 96.82% of the companies in the same industry.
With an excellent Return On Equity value of 50.85%, DOCU belongs to the best of the industry, outperforming 95.76% of the companies in the same industry.
DOCU has a better Return On Invested Capital (6.63%) than 80.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.83% | ||
| ROE | 50.85% | ||
| ROIC | 6.63% |
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 34.73% is amongst the best of the industry. DOCU outperforms 95.05% of its industry peers.
DOCU's Operating Margin of 6.25% is fine compared to the rest of the industry. DOCU outperforms 74.20% of its industry peers.
DOCU has a better Gross Margin (79.08%) than 77.74% of its industry peers.
In the last couple of years the Gross Margin of DOCU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.25% | ||
| PM (TTM) | 34.73% | ||
| GM | 79.08% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DOCU is destroying value.
DOCU has more 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.
2.2 Solvency
An Altman-Z score of 5.83 indicates that DOCU is not in any danger for bankruptcy at the moment.
DOCU has a better Altman-Z score (5.83) than 73.14% 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 | 5.83 |
ROIC/WACC0.52
WACC12.64%
2.3 Liquidity
DOCU has a Current Ratio of 0.83. 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 0.83, DOCU is not doing good in the industry: 80.57% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that DOCU may have some problems paying its short term obligations.
The Quick ratio of DOCU (0.83) is worse than 80.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
DOCU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.79%, which is quite good.
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 7.52% in the last year.
Measured over the past years, DOCU shows a very strong growth in Revenue. The Revenue has been growing by 31.55% on average per year.
EPS 1Y (TTM)19.79%
EPS 3Y50.34%
EPS 5Y97.3%
EPS Q2Q%13.92%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y23.87%
Revenue growth 5Y31.55%
Sales Q2Q%7.77%
3.2 Future
The Earnings Per Share is expected to grow by 7.15% on average over the next years.
Based on estimates for the next years, DOCU will show a small growth in Revenue. The Revenue will grow by 7.35% on average per year.
EPS Next Y20.45%
EPS Next 2Y12.66%
EPS Next 3Y11.43%
EPS Next 5Y7.15%
Revenue Next Year7.74%
Revenue Next 2Y7.06%
Revenue Next 3Y7.27%
Revenue Next 5Y7.35%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
DOCU is valuated rather expensively with a Price/Earnings ratio of 23.14.
Based on the Price/Earnings ratio, DOCU is valued a bit cheaper than 76.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, DOCU is valued a bit cheaper.
The Price/Forward Earnings ratio is 21.04, which indicates a rather expensive current valuation of DOCU.
Based on the Price/Forward Earnings ratio, DOCU is valued a bit cheaper than the industry average as 78.80% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, DOCU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.14 | ||
| Fwd PE | 21.04 |
4.2 Price Multiples
66.43% of the companies in the same industry are more expensive than DOCU, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DOCU indicates a rather cheap valuation: DOCU is cheaper than 86.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.13 | ||
| EV/EBITDA | 52.13 |
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)1.13
PEG (5Y)0.24
EPS Next 2Y12.66%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.83
+0.06 (+0.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners89.59%
Inst Owner Change8.43%
Ins Owners0.41%
Ins Owner Change0.81%
Market Cap16.13B
Analysts68.28
Price Target99.33 (24.43%)
Short Float %4.01%
Short Ratio3.43
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)2
Avg EPS beat(2)9.97%
Min EPS beat(2)1.49%
Max EPS beat(2)18.44%
EPS beat(4)4
Avg EPS beat(4)9.36%
Min EPS beat(4)1.49%
Max EPS beat(4)18.44%
EPS beat(8)8
Avg EPS beat(8)14.41%
EPS beat(12)10
Avg EPS beat(12)10.88%
EPS beat(16)14
Avg EPS beat(16)18.13%
Revenue beat(2)0
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)-0.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.11%
Revenue beat(12)5
Avg Revenue beat(12)0.17%
Revenue beat(16)9
Avg Revenue beat(16)0.93%
PT rev (1m)0.54%
PT rev (3m)46.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.34%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.14 | ||
| Fwd PE | 21.04 | ||
| P/S | 5.54 | ||
| P/FCF | 18.13 | ||
| P/OCF | 16.46 | ||
| P/B | 8.11 | ||
| P/tB | 11.12 | ||
| EV/EBITDA | 52.13 |
EPS(TTM)3.45
EY4.32%
EPS(NY)3.79
Fwd EY4.75%
FCF(TTM)4.4
FCFY5.51%
OCF(TTM)4.85
OCFY6.08%
SpS14.42
BVpS9.85
TBVpS7.18
PEG (NY)1.13
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.83% | ||
| ROE | 50.85% | ||
| ROCE | 8.39% | ||
| ROIC | 6.63% | ||
| ROICexc | 11.71% | ||
| ROICexgc | 20.85% | ||
| OM | 6.25% | ||
| PM (TTM) | 34.73% | ||
| GM | 79.08% | ||
| FCFM | 30.53% |
ROA(3y)-1.17%
ROA(5y)-4.99%
ROE(3y)-11.55%
ROE(5y)-29.5%
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 3Y1.9%
GM growth 5Y1.8%
F-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 88.35% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 343.98% | ||
| Profit Quality | 87.91% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 5.83 |
F-Score5
WACC12.64%
ROIC/WACC0.52
Cap/Depr(3y)87.4%
Cap/Depr(5y)104.3%
Cap/Sales(3y)3.12%
Cap/Sales(5y)4.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.79%
EPS 3Y50.34%
EPS 5Y97.3%
EPS Q2Q%13.92%
EPS Next Y20.45%
EPS Next 2Y12.66%
EPS Next 3Y11.43%
EPS Next 5Y7.15%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y23.87%
Revenue growth 5Y31.55%
Sales Q2Q%7.77%
Revenue Next Year7.74%
Revenue Next 2Y7.06%
Revenue Next 3Y7.27%
Revenue Next 5Y7.35%
EBIT growth 1Y250.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year39.84%
EBIT Next 3Y20.19%
EBIT Next 5Y11.7%
FCF growth 1Y130.15%
FCF growth 3Y60.49%
FCF growth 5Y80.97%
OCF growth 1Y114.22%
OCF growth 3Y48.85%
OCF growth 5Y66.7%