DOCUSIGN INC (DOCU)
US2561631068 - Common Stock
Overall DOCU gets a fundamental rating of 5 out of 10. We evaluated DOCU against 277 industry peers in the Software industry. DOCU has an average financial health and profitability rating. 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.
DOCU had negative earnings in 4 of the past 5 years.
Each year in the past 5 years DOCU had a positive operating cash flow.
1.2 Ratios
DOCU's Return On Assets of 2.49% is fine compared to the rest of the industry. DOCU outperforms 70.91% of its industry peers.
DOCU has a better Return On Equity (6.55%) than 76.36% of its industry peers.
With a decent Return On Invested Capital value of 3.73%, DOCU is doing good in the industry, outperforming 73.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 6.55% | ||
| ROIC | 3.73% |
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 2.68% is fine compared to the rest of the industry. DOCU outperforms 70.18% of its industry peers.
DOCU has a Operating Margin of 2.24%. This is in the better half of the industry: DOCU outperforms 68.36% of its industry peers.
With a decent Gross Margin value of 79.27%, DOCU is doing good in the industry, outperforming 79.64% 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 | 2.24% | ||
| PM (TTM) | 2.68% | ||
| GM | 79.27% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DOCU is destroying value.
Compared to 1 year ago, DOCU has more shares outstanding
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
An Altman-Z score of 3.82 indicates that DOCU is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.82, DOCU is doing good in the industry, outperforming 61.09% 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 | 3.82 |
ROIC/WACC0.36
WACC10.29%
2.3 Liquidity
DOCU has a Current Ratio of 0.94. This is a bad value and indicates that DOCU is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of DOCU (0.94) is worse than 79.64% of its industry peers.
A Quick Ratio of 0.94 indicates that DOCU may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.94, DOCU is doing worse than 78.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
DOCU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.57%, which is quite impressive.
Measured over the past years, DOCU shows a very strong growth in Earnings Per Share. The EPS has been growing by 97.30% on average per year.
Looking at the last year, DOCU shows a quite strong growth in Revenue. The Revenue has grown by 9.77% in the last year.
DOCU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.55% yearly.
EPS 1Y (TTM)46.57%
EPS 3Y50.34%
EPS 5Y97.3%
EPS Q2Q%16.92%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y23.87%
Revenue growth 5Y31.55%
Sales Q2Q%8%
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 7.66% on average per year.
The Revenue is expected to grow by 7.28% on average over the next years.
EPS Next Y10.51%
EPS Next 2Y9.42%
EPS Next 3Y7.66%
EPS Next 5Y7.66%
Revenue Next Year6.46%
Revenue Next 2Y6.43%
Revenue Next 3Y6.43%
Revenue Next 5Y7.28%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
DOCU is valuated rather expensively with a Price/Earnings ratio of 18.31.
Compared to the rest of the industry, the Price/Earnings ratio of DOCU indicates a rather cheap valuation: DOCU is cheaper than 86.18% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.05. DOCU is valued slightly cheaper when compared to this.
DOCU is valuated correctly with a Price/Forward Earnings ratio of 16.57.
Based on the Price/Forward Earnings ratio, DOCU is valued cheaper than 83.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.07, DOCU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 16.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than 62.91% of the companies in the same industry.
90.55% 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 | 12.63 | ||
| EV/EBITDA | 63.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.74
PEG (5Y)0.19
EPS Next 2Y9.42%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOCUSIGN INC
NASDAQ:DOCU (5/31/2024, 7:00:00 PM)
After market: 55 +0.26 (+0.47%)54.74
+0.05 (+0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 16.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.74
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 6.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.24% | ||
| PM (TTM) | 2.68% | ||
| GM | 79.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)46.57%
EPS 3Y50.34%
EPS 5Y
EPS Q2Q%
EPS Next Y10.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.77%
Revenue growth 3Y23.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y