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 283 industry peers in the Software industry. DOCU has an average financial health and profitability rating. DOCU has a correct valuation and a medium 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.
The reported net income has been mixed in the past 5 years: DOCU reported negative net income in multiple years.
In the past 5 years DOCU always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 26.61%, DOCU belongs to the best of the industry, outperforming 96.82% of the companies in the same industry.
DOCU's Return On Equity of 53.32% is amongst the best of the industry. DOCU outperforms 96.47% of its industry peers.
The Return On Invested Capital of DOCU (8.42%) is better than 80.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.61% | ||
| ROE | 53.32% | ||
| ROIC | 8.42% |
ROA(3y)8.62%
ROA(5y)2.54%
ROE(3y)14.69%
ROE(5y)-11.21%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 35.87%, DOCU belongs to the best of the industry, outperforming 95.76% of the companies in the same industry.
With a decent Operating Margin value of 7.81%, DOCU is doing good in the industry, outperforming 74.56% of the companies in the same industry.
Looking at the Gross Margin, with a value of 79.12%, DOCU is in the better half of the industry, outperforming 78.45% of the companies in the same industry.
DOCU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.81% | ||
| PM (TTM) | 35.87% | ||
| GM | 79.12% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DOCU is destroying value.
DOCU has less shares outstanding than it did 1 year ago.
DOCU has more shares outstanding than it did 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
DOCU has an Altman-Z score of 5.61. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
DOCU has a Altman-Z score of 5.61. This is in the better half of the industry: DOCU outperforms 72.08% 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 | 5.61 |
ROIC/WACC0.76
WACC11.04%
2.3 Liquidity
DOCU has a Current Ratio of 0.81. 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 0.81 is on the low side compared to the rest of the industry. DOCU is outperformed by 82.69% of its industry peers.
A Quick Ratio of 0.81 indicates that DOCU may have some problems paying its short term obligations.
DOCU's Quick ratio of 0.81 is on the low side compared to the rest of the industry. DOCU is outperformed by 82.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
DOCU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.73%, which is quite good.
Measured over the past years, DOCU shows a very strong growth in Earnings Per Share. The EPS has been growing by 62.84% on average per year.
DOCU shows a small growth in Revenue. In the last year, the Revenue has grown by 7.78%.
DOCU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.04% yearly.
EPS 1Y (TTM)18.73%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%13.16%
Revenue 1Y (TTM)7.78%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.97%
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 8.07% yearly.
DOCU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.71% yearly.
EPS Next Y0.52%
EPS Next 2Y5.22%
EPS Next 3Y8.7%
EPS Next 5Y8.07%
Revenue Next Year5.86%
Revenue Next 2Y6.52%
Revenue Next 3Y7.87%
Revenue Next 5Y7.71%
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
Based on the Price/Earnings ratio of 24.09, 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 73.14% of the companies listed in the same industry.
DOCU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
DOCU is valuated rather expensively with a Price/Forward Earnings ratio of 23.96.
69.26% of the companies in the same industry are more expensive than DOCU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.85. DOCU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 23.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than 67.49% of the companies in the same industry.
DOCU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DOCU is cheaper than 81.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.82 | ||
| EV/EBITDA | 47.71 |
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)45.99
PEG (5Y)0.38
EPS Next 2Y5.22%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:DOCU (5/23/2025, 2:11:24 PM)
85.51
-1.02 (-1.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners89.59%
Inst Owner Change-2.82%
Ins Owners0.41%
Ins Owner Change0.67%
Market Cap17.32B
Analysts69.66
Price Target94.63 (10.67%)
Short Float %3.6%
Short Ratio2.91
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)1
Avg EPS beat(2)0.43%
Min EPS beat(2)-0.64%
Max EPS beat(2)1.49%
EPS beat(4)3
Avg EPS beat(4)5.27%
Min EPS beat(4)-0.64%
Max EPS beat(4)18.44%
EPS beat(8)7
Avg EPS beat(8)11.65%
EPS beat(12)10
Avg EPS beat(12)10.9%
EPS beat(16)13
Avg EPS beat(16)14.11%
Revenue beat(2)0
Avg Revenue beat(2)-0.37%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)-0.04%
Revenue beat(4)0
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)-0.04%
Revenue beat(8)1
Avg Revenue beat(8)-0.4%
Revenue beat(12)4
Avg Revenue beat(12)0.04%
Revenue beat(16)8
Avg Revenue beat(16)0.7%
PT rev (1m)-3.37%
PT rev (3m)-4.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.19%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-6.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.09 | ||
| Fwd PE | 23.96 | ||
| P/S | 5.82 | ||
| P/FCF | 18.82 | ||
| P/OCF | 17.02 | ||
| P/B | 8.65 | ||
| P/tB | 11.76 | ||
| EV/EBITDA | 47.71 |
EPS(TTM)3.55
EY4.15%
EPS(NY)3.57
Fwd EY4.17%
FCF(TTM)4.54
FCFY5.31%
OCF(TTM)5.02
OCFY5.87%
SpS14.7
BVpS9.89
TBVpS7.27
PEG (NY)45.99
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.61% | ||
| ROE | 53.32% | ||
| ROCE | 10.67% | ||
| ROIC | 8.42% | ||
| ROICexc | 15.09% | ||
| ROICexgc | 26.77% | ||
| OM | 7.81% | ||
| PM (TTM) | 35.87% | ||
| GM | 79.12% | ||
| FCFM | 30.92% |
ROA(3y)8.62%
ROA(5y)2.54%
ROE(3y)14.69%
ROE(5y)-11.21%
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 3Y0.53%
GM growth 5Y1.07%
F-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 89.97% | ||
| Cap/Sales | 3.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 298.82% | ||
| Profit Quality | 86.18% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 5.61 |
F-Score5
WACC11.04%
ROIC/WACC0.76
Cap/Depr(3y)92.4%
Cap/Depr(5y)93.61%
Cap/Sales(3y)3.23%
Cap/Sales(5y)3.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.73%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%13.16%
EPS Next Y0.52%
EPS Next 2Y5.22%
EPS Next 3Y8.7%
EPS Next 5Y8.07%
Revenue 1Y (TTM)7.78%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.97%
Revenue Next Year5.86%
Revenue Next 2Y6.52%
Revenue Next 3Y7.87%
Revenue Next 5Y7.71%
EBIT growth 1Y275.39%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year17.87%
EBIT Next 3Y15.26%
EBIT Next 5Y-3.95%
FCF growth 1Y3.74%
FCF growth 3Y27.4%
FCF growth 5Y83.95%
OCF growth 1Y3.85%
OCF growth 3Y26.17%
OCF growth 5Y54.46%