DOCUSIGN INC (DOCU) Stock Fundamental Analysis
USA - NASDAQ:DOCU - US2561631068 - Common Stock
81.57 USD
+1.38 (+1.72%)
81.5999 USD
+0.03 (+0.04%)
Taking everything into account, DOCU scores 5 out of 10 in our fundamental rating. DOCU was compared to 280 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
DOCU had positive earnings in the past year.
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.
DOCU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DOCU has a better Return On Assets (7.11%) than 77.14% of its industry peers.
DOCU has a Return On Equity of 14.13%. This is amongst the best in the industry. DOCU outperforms 81.07% of its industry peers.
DOCU has a better Return On Invested Capital (8.89%) than 81.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 14.13% | ||
| ROIC | 8.89% |
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 better Profit Margin (9.08%) than 72.14% of its industry peers.
DOCU has a Operating Margin of 7.90%. This is in the better half of the industry: DOCU outperforms 71.43% of its industry peers.
DOCU has a Gross Margin of 79.34%. This is in the better half of the industry: DOCU outperforms 78.57% of its industry peers.
In the last couple of years the Gross Margin of DOCU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.9% | ||
| PM (TTM) | 9.08% | ||
| GM | 79.34% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
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
DOCU has an Altman-Z score of 5.24. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
DOCU has a better Altman-Z score (5.24) than 69.64% 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 | 5.24 |
ROIC/WACC0.81
WACC11%
2.3 Liquidity
A Current Ratio of 0.74 indicates that DOCU may have some problems paying its short term obligations.
DOCU has a Current ratio of 0.74. This is amonst the worse of the industry: DOCU underperforms 82.50% of its industry peers.
DOCU has a Quick Ratio of 0.74. 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 0.74, DOCU is doing worse than 82.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
DOCU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.19%.
DOCU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.84% yearly.
DOCU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.29%.
DOCU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.04% yearly.
EPS 1Y (TTM)7.19%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%-5.15%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.78%
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 Y2.79%
EPS Next 2Y5.64%
EPS Next 3Y8.66%
EPS Next 5Y7.77%
Revenue Next Year7.84%
Revenue Next 2Y7.31%
Revenue Next 3Y7.71%
Revenue Next 5Y7.4%
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
Based on the Price/Earnings ratio of 22.78, the valuation of DOCU can be described as rather expensive.
Based on the Price/Earnings ratio, DOCU is valued a bit cheaper than 73.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. DOCU is around the same levels.
DOCU is valuated rather expensively with a Price/Forward Earnings ratio of 20.59.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DOCU indicates a somewhat cheap valuation: DOCU is cheaper than 75.71% of the companies listed in the same industry.
DOCU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.78 | ||
| Fwd PE | 20.59 |
4.2 Price Multiples
66.79% of the companies in the same industry are more expensive than DOCU, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DOCU is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.53 | ||
| EV/EBITDA | 41.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DOCU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.17
PEG (5Y)0.36
EPS Next 2Y5.64%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.57
+1.38 (+1.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.49%
Inst Owner Change-0.51%
Ins Owners0.44%
Ins Owner Change0.51%
Market Cap16.40B
Analysts71.72
Price Target95.94 (17.62%)
Short Float %3.19%
Short Ratio2.72
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)7.78%
Min EPS beat(2)6.77%
Max EPS beat(2)8.79%
EPS beat(4)3
Avg EPS beat(4)4.1%
Min EPS beat(4)-0.64%
Max EPS beat(4)8.79%
EPS beat(8)7
Avg EPS beat(8)9.36%
EPS beat(12)11
Avg EPS beat(12)13.61%
EPS beat(16)13
Avg EPS beat(16)10.63%
Revenue beat(2)2
Avg Revenue beat(2)0.34%
Min Revenue beat(2)0.07%
Max Revenue beat(2)0.61%
Revenue beat(4)2
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-0.38%
Revenue beat(12)5
Avg Revenue beat(12)0.06%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)4.46%
PT rev (3m)1.39%
EPS NQ rev (1m)2.15%
EPS NQ rev (3m)2.18%
EPS NY rev (1m)0.17%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)1.32%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)1.09%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.78 | ||
| Fwd PE | 20.59 | ||
| P/S | 5.3 | ||
| P/FCF | 17.53 | ||
| P/OCF | 15.78 | ||
| P/B | 8.25 | ||
| P/tB | 11.18 | ||
| EV/EBITDA | 41.76 |
EPS(TTM)3.58
EY4.39%
EPS(NY)3.96
Fwd EY4.86%
FCF(TTM)4.65
FCFY5.7%
OCF(TTM)5.17
OCFY6.34%
SpS15.39
BVpS9.89
TBVpS7.3
PEG (NY)8.17
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 14.13% | ||
| ROCE | 11.25% | ||
| ROIC | 8.89% | ||
| ROICexc | 14.53% | ||
| ROICexgc | 23.9% | ||
| OM | 7.9% | ||
| PM (TTM) | 9.08% | ||
| GM | 79.34% | ||
| FCFM | 30.23% |
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
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-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 90.03% | ||
| Cap/Sales | 3.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 288.71% | ||
| Profit Quality | 333.04% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 5.24 |
F-Score7
WACC11%
ROIC/WACC0.81
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)7.19%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%-5.15%
EPS Next Y2.79%
EPS Next 2Y5.64%
EPS Next 3Y8.66%
EPS Next 5Y7.77%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.78%
Revenue Next Year7.84%
Revenue Next 2Y7.31%
Revenue Next 3Y7.71%
Revenue Next 5Y7.4%
EBIT growth 1Y68.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year18.1%
EBIT Next 3Y13.26%
EBIT Next 5Y-3.95%
FCF growth 1Y70.99%
FCF growth 3Y27.4%
FCF growth 5Y83.99%
OCF growth 1Y63.94%
OCF growth 3Y26.17%
OCF growth 5Y54.46%