DOCUSIGN INC (DOCU) Stock Fundamental Analysis
USA - NASDAQ:DOCU - US2561631068 - Common Stock
64.01 USD
-1.03 (-1.58%)
63.86 USD
-0.15 (-0.23%)
Taking everything into account, DOCU scores 5 out of 10 in our fundamental rating. DOCU was compared to 281 industry peers in the Software industry. Both the profitability and the financial health of DOCU get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past 5 years DOCU always reported a positive cash flow from operatings.
1.2 Ratios
DOCU has a better Return On Assets (7.11%) than 77.58% of its industry peers.
DOCU has a better Return On Equity (14.13%) than 81.14% of its industry peers.
DOCU has a Return On Invested Capital of 8.89%. This is amongst the best in the industry. DOCU outperforms 82.21% 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
Looking at the Profit Margin, with a value of 9.08%, DOCU is in the better half of the industry, outperforming 70.82% of the companies in the same industry.
DOCU has a Operating Margin of 7.90%. This is in the better half of the industry: DOCU outperforms 72.24% of its industry peers.
With a decent Gross Margin value of 79.34%, DOCU is doing good in the industry, outperforming 79.72% of the companies in the same industry.
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
DOCU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 4.24 indicates that DOCU is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.24, DOCU is doing good in the industry, outperforming 70.46% 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 | 4.24 |
ROIC/WACC0.8
WACC11.05%
2.3 Liquidity
A Current Ratio of 0.74 indicates that DOCU may have some problems paying its short term obligations.
DOCU's Current ratio of 0.74 is on the low side compared to the rest of the industry. DOCU is outperformed by 85.05% 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.
With a Quick ratio value of 0.74, DOCU is not doing good in the industry: 84.70% of the companies in the same industry are doing better.
| 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%.
The Revenue has been growing by 25.04% on average over the past years. This is a very strong growth!
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.07% on average per year.
The Revenue is expected to grow by 7.67% on average over the next years.
EPS Next Y5.86%
EPS Next 2Y7.63%
EPS Next 3Y9.17%
EPS Next 5Y8.07%
Revenue Next Year7.91%
Revenue Next 2Y7.34%
Revenue Next 3Y7.75%
Revenue Next 5Y7.67%
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 17.88, the valuation of DOCU can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DOCU indicates a somewhat cheap valuation: DOCU is cheaper than 75.44% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DOCU to the average of the S&P500 Index (25.07), we can say DOCU is valued slightly cheaper.
DOCU is valuated correctly with a Price/Forward Earnings ratio of 15.56.
Based on the Price/Forward Earnings ratio, DOCU is valued a bit cheaper than 78.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.08. DOCU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 15.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than the industry average as 69.39% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DOCU is valued cheaply inside the industry as 86.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.76 | ||
| EV/EBITDA | 32.72 |
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)3.05
PEG (5Y)0.28
EPS Next 2Y7.63%
EPS Next 3Y9.17%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
64.01
-1.03 (-1.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.29%
Inst Owner Change1.44%
Ins Owners0.48%
Ins Owner Change4.13%
Market Cap12.87B
Revenue(TTM)3.10B
Net Income(TTM)280.97M
Analysts71.72
Price Target96.58 (50.88%)
Short Float %2.38%
Short Ratio1.59
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)0%
PT rev (3m)5.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.26%
EPS NY rev (1m)0%
EPS NY rev (3m)3.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 15.56 | ||
| P/S | 4.16 | ||
| P/FCF | 13.76 | ||
| P/OCF | 12.38 | ||
| P/B | 6.48 | ||
| P/tB | 8.77 | ||
| EV/EBITDA | 32.72 |
EPS(TTM)3.58
EY5.59%
EPS(NY)4.11
Fwd EY6.43%
FCF(TTM)4.65
FCFY7.27%
OCF(TTM)5.17
OCFY8.08%
SpS15.39
BVpS9.89
TBVpS7.3
PEG (NY)3.05
PEG (5Y)0.28
Graham Number28.22
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
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 Turnover0.78
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 | 4.24 |
F-Score7
WACC11.05%
ROIC/WACC0.8
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 Y5.86%
EPS Next 2Y7.63%
EPS Next 3Y9.17%
EPS Next 5Y8.07%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.78%
Revenue Next Year7.91%
Revenue Next 2Y7.34%
Revenue Next 3Y7.75%
Revenue Next 5Y7.67%
EBIT growth 1Y68.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year19.89%
EBIT Next 3Y11.91%
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%
DOCUSIGN INC / DOCU FAQ
Can you provide the ChartMill fundamental rating for DOCUSIGN INC?
ChartMill assigns a fundamental rating of 5 / 10 to DOCU.
What is the valuation status for DOCU stock?
ChartMill assigns a valuation rating of 5 / 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.
Can you provide the PE and PB ratios for DOCU stock?
The Price/Earnings (PE) ratio for DOCUSIGN INC (DOCU) is 17.88 and the Price/Book (PB) ratio is 6.48.
How financially healthy is DOCUSIGN INC?
The financial health rating of DOCUSIGN INC (DOCU) is 5 / 10.