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 282 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.
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.
Each year in the past 5 years DOCU had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DOCU (28.02%) is better than 97.16% of its industry peers.
DOCU has a better Return On Equity (54.90%) than 96.45% of its industry peers.
The Return On Invested Capital of DOCU (8.63%) is better than 84.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.02% | ||
| ROE | 54.9% | ||
| ROIC | 8.63% |
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
Looking at the Profit Margin, with a value of 36.50%, DOCU belongs to the top of the industry, outperforming 96.10% of the companies in the same industry.
DOCU has a better Operating Margin (7.96%) than 74.82% of its industry peers.
Looking at the Gross Margin, with a value of 79.23%, DOCU is in the better half of the industry, outperforming 78.72% 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 | 7.96% | ||
| PM (TTM) | 36.5% | ||
| GM | 79.23% |
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.
The number of shares outstanding for DOCU has been reduced compared to 1 year ago.
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 5.08 indicates that DOCU is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.08, DOCU is doing good in the industry, outperforming 69.15% of the companies in the same industry.
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 | 5.08 |
ROIC/WACC0.84
WACC10.26%
2.3 Liquidity
A Current Ratio of 0.79 indicates that DOCU may have some problems paying its short term obligations.
With a Current ratio value of 0.79, DOCU is not doing good in the industry: 81.91% of the companies in the same industry are doing better.
A Quick Ratio of 0.79 indicates that DOCU may have some problems paying its short term obligations.
The Quick ratio of DOCU (0.79) is worse than 81.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
DOCU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.48%, which is quite good.
The Earnings Per Share has been growing by 62.84% on average over the past years. This is a very strong growth
DOCU shows a small growth in Revenue. In the last year, the Revenue has grown by 7.85%.
The Revenue has been growing by 25.04% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)17.48%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%9.76%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%7.61%
3.2 Future
DOCU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.77% yearly.
Based on estimates for the next years, DOCU will show a small growth in Revenue. The Revenue will grow by 7.40% on average per year.
EPS Next Y2.61%
EPS Next 2Y5.58%
EPS Next 3Y8.67%
EPS Next 5Y7.77%
Revenue Next Year6.68%
Revenue Next 2Y6.65%
Revenue Next 3Y7.86%
Revenue Next 5Y7.4%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 20.70 indicates a rather expensive valuation of DOCU.
Based on the Price/Earnings ratio, DOCU is valued a bit cheaper than the industry average as 76.60% of the companies are valued more expensively.
DOCU is valuated rather cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.99, the valuation of DOCU can be described as rather expensive.
Based on the Price/Forward Earnings ratio, DOCU is valued a bit cheaper than the industry average as 77.66% of the companies are valued more expensively.
DOCU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 18.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DOCU indicates a somewhat cheap valuation: DOCU is cheaper than 68.09% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DOCU is valued cheaply inside the industry as 86.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.57 | ||
| EV/EBITDA | 39.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DOCU may justify a higher PE ratio.
PEG (NY)7.92
PEG (5Y)0.33
EPS Next 2Y5.58%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
No dividends for DOCU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
75.14
+1.3 (+1.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.38%
Inst Owner Change0.1%
Ins Owners0.41%
Ins Owner Change0.49%
Market Cap15.18B
Analysts71.03
Price Target91.31 (21.52%)
Short Float %3.68%
Short Ratio2.25
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)4.07%
Min EPS beat(2)-0.64%
Max EPS beat(2)8.79%
EPS beat(4)3
Avg EPS beat(4)7.02%
Min EPS beat(4)-0.64%
Max EPS beat(4)18.44%
EPS beat(8)7
Avg EPS beat(8)9.41%
EPS beat(12)11
Avg EPS beat(12)13.26%
EPS beat(16)13
Avg EPS beat(16)11.16%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)0.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)0.07%
Revenue beat(8)1
Avg Revenue beat(8)-0.52%
Revenue beat(12)5
Avg Revenue beat(12)0.12%
Revenue beat(16)8
Avg Revenue beat(16)0.39%
PT rev (1m)0%
PT rev (3m)-4.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.75%
EPS NY rev (1m)0.04%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 18.99 | ||
| P/S | 5.01 | ||
| P/FCF | 16.57 | ||
| P/OCF | 14.97 | ||
| P/B | 7.54 | ||
| P/tB | 10.19 | ||
| EV/EBITDA | 39.3 |
EPS(TTM)3.63
EY4.83%
EPS(NY)3.96
Fwd EY5.27%
FCF(TTM)4.53
FCFY6.03%
OCF(TTM)5.02
OCFY6.68%
SpS15
BVpS9.97
TBVpS7.37
PEG (NY)7.92
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.02% | ||
| ROE | 54.9% | ||
| ROCE | 10.93% | ||
| ROIC | 8.63% | ||
| ROICexc | 15.15% | ||
| ROICexgc | 26% | ||
| OM | 7.96% | ||
| PM (TTM) | 36.5% | ||
| GM | 79.23% | ||
| FCFM | 30.22% |
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-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 86.09% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 285.76% | ||
| Profit Quality | 82.81% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 5.08 |
F-Score6
WACC10.26%
ROIC/WACC0.84
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)17.48%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%9.76%
EPS Next Y2.61%
EPS Next 2Y5.58%
EPS Next 3Y8.67%
EPS Next 5Y7.77%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%7.61%
Revenue Next Year6.68%
Revenue Next 2Y6.65%
Revenue Next 3Y7.86%
Revenue Next 5Y7.4%
EBIT growth 1Y169.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year17.76%
EBIT Next 3Y13.78%
EBIT Next 5Y-3.95%
FCF growth 1Y95.31%
FCF growth 3Y27.4%
FCF growth 5Y83.95%
OCF growth 1Y86.34%
OCF growth 3Y26.17%
OCF growth 5Y54.46%