DOCUSIGN INC (DOCU) Stock Fundamental Analysis
NASDAQ:DOCU - Nasdaq - US2561631068 - Common Stock - Currency: USD
Taking everything into account, DOCU scores 5 out of 10 in our fundamental rating. DOCU was compared to 284 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
In the past year DOCU was profitable.
In the past year DOCU had a positive cash flow from operations.
In the past 5 years DOCU reported 4 times negative net income.
Each year in the past 5 years DOCU had a positive operating cash flow.
1.2 Ratios
DOCU has a better Return On Assets (26.83%) than 97.47% of its industry peers.
With an excellent Return On Equity value of 50.85%, DOCU belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
The Return On Invested Capital of DOCU (6.63%) is better than 80.51% 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 94.95% of its industry peers.
DOCU's Operating Margin of 6.25% is fine compared to the rest of the industry. DOCU outperforms 73.29% of its industry peers.
Looking at the Gross Margin, with a value of 79.08%, DOCU is in the better half of the industry, outperforming 76.90% of the companies in the same industry.
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
DOCU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
DOCU has an Altman-Z score of 6.96. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
DOCU has a Altman-Z score of 6.96. This is in the better half of the industry: DOCU outperforms 71.84% 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 | 6.96 |
ROIC/WACC0.61
WACC10.84%
2.3 Liquidity
A Current Ratio of 0.83 indicates that DOCU may have some problems paying its short term obligations.
DOCU has a worse Current ratio (0.83) than 81.23% of its industry peers.
DOCU has a Quick 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.
DOCU's Quick ratio of 0.83 is on the low side compared to the rest of the industry. DOCU is outperformed by 80.87% 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.
DOCU shows a small growth in Revenue. In the last year, the Revenue has grown by 7.52%.
The Revenue has been growing by 31.55% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, DOCU will show a small growth in Earnings Per Share. The EPS will grow by 7.15% on average per year.
The Revenue is expected to grow by 7.35% on average over the next years.
EPS Next Y20.63%
EPS Next 2Y12.89%
EPS Next 3Y11.46%
EPS Next 5Y7.15%
Revenue Next Year7.74%
Revenue Next 2Y7.06%
Revenue Next 3Y7.32%
Revenue Next 5Y7.35%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.78 indicates a quite expensive valuation of DOCU.
DOCU's Price/Earnings ratio is a bit cheaper when compared to the industry. DOCU is cheaper than 74.73% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. DOCU is around the same levels.
Based on the Price/Forward Earnings ratio of 25.15, the valuation of DOCU can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DOCU indicates a somewhat cheap valuation: DOCU is cheaper than 75.81% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, DOCU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 25.15 |
4.2 Price Multiples
65.34% of the companies in the same industry are more expensive than DOCU, based on the Enterprise Value to EBITDA ratio.
84.84% of the companies in the same industry are more expensive than DOCU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.77 | ||
| EV/EBITDA | 63.93 |
4.3 Compensation for Growth
DOCU's 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)1.35
PEG (5Y)0.29
EPS Next 2Y12.89%
EPS Next 3Y11.46%
5. Dividend
5.1 Amount
No dividends for DOCU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOCUSIGN INC
NASDAQ:DOCU (2/5/2025, 12:52:56 PM)
95.84
-0.63 (-0.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners80.78%
Inst Owner Change-0.78%
Ins Owners0.39%
Ins Owner Change0.81%
Market Cap19.36B
Analysts66.9
Price Target98.8 (3.09%)
Short Float %4.22%
Short Ratio2.58
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)2.68%
PT rev (3m)49.53%
EPS NQ rev (1m)1.34%
EPS NQ rev (3m)1.95%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 25.15 | ||
| P/S | 6.65 | ||
| P/FCF | 21.77 | ||
| P/OCF | 19.76 | ||
| P/B | 9.73 | ||
| P/tB | 13.35 | ||
| EV/EBITDA | 63.93 |
EPS(TTM)3.45
EY3.6%
EPS(NY)3.81
Fwd EY3.98%
FCF(TTM)4.4
FCFY4.59%
OCF(TTM)4.85
OCFY5.06%
SpS14.42
BVpS9.85
TBVpS7.18
PEG (NY)1.35
PEG (5Y)0.29
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 | 6.96 |
F-Score5
WACC10.84%
ROIC/WACC0.61
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 Y20.63%
EPS Next 2Y12.89%
EPS Next 3Y11.46%
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 3Y7.32%
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%