68.81 USD
-0.99 (-1.42%)
68.9792 USD
+0.17 (+0.25%)
We assign a fundamental rating of 5 out of 10 to DOCU. DOCU was compared to 276 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.
DOCU had a positive operating cash flow in the past year.
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 Return On Assets of 7.59%. This is in the better half of the industry: DOCU outperforms 78.26% of its industry peers.
DOCU's Return On Equity of 15.25% is amongst the best of the industry. DOCU outperforms 82.25% of its industry peers.
DOCU's Return On Invested Capital of 9.75% is amongst the best of the industry. DOCU outperforms 84.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 15.25% | ||
| ROIC | 9.75% |
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 (9.57%) than 69.93% of its industry peers.
DOCU has a Operating Margin of 8.59%. This is in the better half of the industry: DOCU outperforms 74.28% of its industry peers.
With a decent Gross Margin value of 79.31%, DOCU is doing good in the industry, outperforming 78.99% 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 | 8.59% | ||
| PM (TTM) | 9.57% | ||
| GM | 79.31% |
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 4.50 indicates that DOCU is not in any danger for bankruptcy at the moment.
DOCU's Altman-Z score of 4.50 is fine compared to the rest of the industry. DOCU outperforms 69.20% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.5 |
ROIC/WACC0.89
WACC10.96%
2.3 Liquidity
A Current Ratio of 0.73 indicates that DOCU may have some problems paying its short term obligations.
DOCU has a Current ratio of 0.73. This is amonst the worse of the industry: DOCU underperforms 86.96% of its industry peers.
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.
With a Quick ratio value of 0.73, DOCU is not doing good in the industry: 86.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
DOCU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.96%.
The Earnings Per Share has been growing by 62.84% on average over the past years. This is a very strong growth
The Revenue has grown by 8.45% in the past year. This is quite good.
The Revenue has been growing by 25.04% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)6.96%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%12.22%
Revenue 1Y (TTM)8.45%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.42%
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.
DOCU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.67% yearly.
EPS Next Y8.79%
EPS Next 2Y8.77%
EPS Next 3Y9.1%
EPS Next 5Y8.07%
Revenue Next Year8.37%
Revenue Next 2Y7.59%
Revenue Next 3Y7.63%
Revenue Next 5Y7.67%
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
With a Price/Earnings ratio of 18.65, DOCU is valued on the expensive side.
DOCU's Price/Earnings ratio is a bit cheaper when compared to the industry. DOCU is cheaper than 76.09% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. DOCU is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.38, which indicates a correct valuation of DOCU.
DOCU's Price/Forward Earnings ratio is rather cheap when compared to the industry. DOCU is cheaper than 80.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. DOCU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 16.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DOCU indicates a rather cheap valuation: DOCU is cheaper than 86.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.01 | ||
| EV/EBITDA | 33.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DOCU does not grow enough to justify the current Price/Earnings ratio.
DOCU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.12
PEG (5Y)0.3
EPS Next 2Y8.77%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
No dividends for DOCU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
68.81
-0.99 (-1.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.69%
Inst Owner Change0%
Ins Owners0.5%
Ins Owner Change1.05%
Market Cap13.84B
Revenue(TTM)3.16B
Net Income(TTM)302.27M
Analysts72.41
Price Target88.81 (29.07%)
Short Float %2.76%
Short Ratio2.08
Dividend
| Industry Rank | Sector 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)7.48%
Min EPS beat(2)6.77%
Max EPS beat(2)8.2%
EPS beat(4)3
Avg EPS beat(4)5.78%
Min EPS beat(4)-0.64%
Max EPS beat(4)8.79%
EPS beat(8)7
Avg EPS beat(8)7.57%
EPS beat(12)11
Avg EPS beat(12)11.53%
EPS beat(16)13
Avg EPS beat(16)9.6%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)0.61%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-0.57%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-0.39%
Revenue beat(12)4
Avg Revenue beat(12)-0.07%
Revenue beat(16)7
Avg Revenue beat(16)0.13%
PT rev (1m)-8.04%
PT rev (3m)-8.04%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)2.83%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 16.38 | ||
| P/S | 4.38 | ||
| P/FCF | 14.01 | ||
| P/OCF | 12.63 | ||
| P/B | 6.98 | ||
| P/tB | 9.46 | ||
| EV/EBITDA | 33.21 |
EPS(TTM)3.69
EY5.36%
EPS(NY)4.2
Fwd EY6.1%
FCF(TTM)4.91
FCFY7.14%
OCF(TTM)5.45
OCFY7.92%
SpS15.71
BVpS9.85
TBVpS7.28
PEG (NY)2.12
PEG (5Y)0.3
Graham Number28.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 15.25% | ||
| ROCE | 12.34% | ||
| ROIC | 9.75% | ||
| ROICexc | 15.77% | ||
| ROICexgc | 25.5% | ||
| OM | 8.59% | ||
| PM (TTM) | 9.57% | ||
| GM | 79.31% | ||
| FCFM | 31.27% |
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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 91.05% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 281.19% | ||
| Profit Quality | 326.83% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 4.5 |
F-Score7
WACC10.96%
ROIC/WACC0.89
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)6.96%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%12.22%
EPS Next Y8.79%
EPS Next 2Y8.77%
EPS Next 3Y9.1%
EPS Next 5Y8.07%
Revenue 1Y (TTM)8.45%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.42%
Revenue Next Year8.37%
Revenue Next 2Y7.59%
Revenue Next 3Y7.63%
Revenue Next 5Y7.67%
EBIT growth 1Y47.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year23.02%
EBIT Next 3Y12.06%
EBIT Next 5Y-3.95%
FCF growth 1Y31.45%
FCF growth 3Y27.4%
FCF growth 5Y83.99%
OCF growth 1Y29.53%
OCF growth 3Y26.17%
OCF growth 5Y54.46%
DOCUSIGN INC / DOCU 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 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.
What is the earnings growth outlook for DOCUSIGN INC?
The Earnings per Share (EPS) of DOCUSIGN INC (DOCU) is expected to grow by 8.79% in the next year.