DOCUSIGN INC (DOCU) Fundamental Analysis & Valuation

NASDAQ:DOCU • US2561631068

Current stock price

48.51 USD
+0.76 (+1.59%)
Last:

This DOCU fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. DOCU Profitability Analysis

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.
  • Of the past 5 years DOCU 4 years had a positive operating cash flow.
DOCU Yearly Net Income VS EBIT VS OCF VS FCFDOCU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B

1.2 Ratios

  • DOCU's Return On Assets of 7.59% is amongst the best of the industry. DOCU outperforms 81.23% of its industry peers.
  • DOCU has a Return On Equity of 15.25%. This is amongst the best in the industry. DOCU outperforms 82.67% of its industry peers.
  • With an excellent Return On Invested Capital value of 9.75%, DOCU belongs to the best of the industry, outperforming 85.20% of the companies in the same industry.
Industry RankSector 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
DOCU Yearly ROA, ROE, ROICDOCU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 -60

1.3 Margins

  • Looking at the Profit Margin, with a value of 9.57%, DOCU is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
  • DOCU has a Operating Margin of 8.59%. This is in the better half of the industry: DOCU outperforms 74.73% of its industry peers.
  • With a decent Gross Margin value of 79.31%, DOCU is doing good in the industry, outperforming 79.06% 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 RankSector 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%
DOCU Yearly Profit, Operating, Gross MarginsDOCU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

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5

2. DOCU Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DOCU is destroying value.
  • DOCU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
DOCU Yearly Shares OutstandingDOCU Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
DOCU Yearly Total Debt VS Total AssetsDOCU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • DOCU has an Altman-Z score of 3.16. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.16, DOCU is in the better half of the industry, outperforming 66.79% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.16
ROIC/WACC0.9
WACC10.8%
DOCU Yearly LT Debt VS Equity VS FCFDOCU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

2.3 Liquidity

  • DOCU has a Current 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.
  • DOCU's Current ratio of 0.73 is on the low side compared to the rest of the industry. DOCU is outperformed by 88.09% 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.
  • DOCU's Quick ratio of 0.73 is on the low side compared to the rest of the industry. DOCU is outperformed by 87.73% of its industry peers.
Industry RankSector Rank
Current Ratio 0.73
Quick Ratio 0.73
DOCU Yearly Current Assets VS Current LiabilitesDOCU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. DOCU Growth Analysis

3.1 Past

  • DOCU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.17%, which is quite good.
  • DOCU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.27% yearly.
EPS 1Y (TTM)8.17%
EPS 3Y23.47%
EPS 5Y34.27%
EPS Q2Q%17.44%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.81%

3.2 Future

  • DOCU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.73% yearly.
  • The Revenue is expected to grow by 6.52% on average over the next years.
EPS Next Y9.27%
EPS Next 2Y9.26%
EPS Next 3Y8.74%
EPS Next 5Y8.73%
Revenue Next Year7.42%
Revenue Next 2Y7.59%
Revenue Next 3Y8.32%
Revenue Next 5Y6.52%

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.
DOCU Yearly Revenue VS EstimatesDOCU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 1B 2B 3B 4B 5B
DOCU Yearly EPS VS EstimatesDOCU Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2 4 6

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7

4. DOCU Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.63 indicates a correct valuation of DOCU.
  • DOCU's Price/Earnings ratio is rather cheap when compared to the industry. DOCU is cheaper than 85.92% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of DOCU to the average of the S&P500 Index (25.73), we can say DOCU is valued rather cheaply.
  • The Price/Forward Earnings ratio is 11.56, which indicates a very decent valuation of DOCU.
  • 82.67% of the companies in the same industry are more expensive than DOCU, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.72, DOCU is valued rather cheaply.
Industry RankSector Rank
PE 12.63
Fwd PE 11.56
DOCU Price Earnings VS Forward Price EarningsDOCU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than 72.20% 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 90.61% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.83
EV/EBITDA 21.73
DOCU Per share dataDOCU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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)1.36
PEG (5Y)0.37
EPS Next 2Y9.26%
EPS Next 3Y8.74%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. DOCU Dividend Analysis

5.1 Amount

  • DOCU does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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DOCU Fundamentals: All Metrics, Ratios and Statistics

DOCUSIGN INC

NASDAQ:DOCU (3/20/2026, 10:38:57 AM)

48.51

+0.76 (+1.59%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-17
Earnings (Next)06-03
Inst Owners85.86%
Inst Owner Change-1.17%
Ins Owners0.47%
Ins Owner Change-0.47%
Market Cap9.72B
Revenue(TTM)N/A
Net Income(TTM)302.27M
Analysts71.03
Price Target80.82 (66.6%)
Short Float %7.52%
Short Ratio3.17
Dividend
Industry RankSector 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)-7.23%
PT rev (3m)-13.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
Industry RankSector Rank
PE 12.63
Fwd PE 11.56
P/S 3.08
P/FCF 9.83
P/OCF 8.87
P/B 4.9
P/tB 6.64
EV/EBITDA 21.73
EPS(TTM)3.84
EY7.92%
EPS(NY)4.2
Fwd EY8.65%
FCF(TTM)4.93
FCFY10.17%
OCF(TTM)5.47
OCFY11.28%
SpS15.77
BVpS9.89
TBVpS7.31
PEG (NY)1.36
PEG (5Y)0.37
Graham Number29.24
Profitability
Industry RankSector 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 RankSector 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 3.16
F-Score7
WACC10.8%
ROIC/WACC0.9
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)8.17%
EPS 3Y23.47%
EPS 5Y34.27%
EPS Q2Q%17.44%
EPS Next Y9.27%
EPS Next 2Y9.26%
EPS Next 3Y8.74%
EPS Next 5Y8.73%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.81%
Revenue Next Year7.42%
Revenue Next 2Y7.59%
Revenue Next 3Y8.32%
Revenue Next 5Y6.52%
EBIT growth 1Y47.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year21.68%
EBIT Next 3Y12.03%
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 Fundamental Analysis 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 7 / 10 to DOCUSIGN INC (DOCU). This can be considered as Undervalued.


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 9.27% in the next year.