DOCUSIGN INC (DOCU)

US2561631068 - Common Stock

52.74  +0.54 (+1.03%)

After market: 52.72 -0.02 (-0.04%)

Fundamental Rating

5

DOCU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. DOCU has only an average score on both its financial health and profitability. DOCU has a decent growth rate and is not valued too expensively.



5

1. Profitability

1.1 Basic Checks

In the past year DOCU was profitable.
In the past year DOCU had a positive cash flow from operations.
DOCU had negative earnings in 4 of the past 5 years.
In the past 5 years DOCU always reported a positive cash flow from operatings.

1.2 Ratios

DOCU has a better Return On Assets (3.66%) than 73.72% of its industry peers.
With an excellent Return On Equity value of 9.43%, DOCU belongs to the best of the industry, outperforming 80.29% of the companies in the same industry.
The Return On Invested Capital of DOCU (5.35%) is better than 78.83% of its industry peers.
Industry RankSector Rank
ROA 3.66%
ROE 9.43%
ROIC 5.35%
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 has a better Profit Margin (3.81%) than 71.17% of its industry peers.
DOCU has a Operating Margin of 3.19%. This is in the better half of the industry: DOCU outperforms 69.71% of its industry peers.
DOCU has a better Gross Margin (79.16%) than 79.20% of its industry peers.
DOCU's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 3.19%
PM (TTM) 3.81%
GM 79.16%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.9%
GM growth 5Y1.8%

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DOCU is destroying value.
The number of shares outstanding for DOCU has been increased 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

DOCU has an Altman-Z score of 3.74. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
DOCU has a Altman-Z score of 3.74. This is in the better half of the industry: DOCU outperforms 60.58% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.74
ROIC/WACC0.54
WACC9.84%

2.3 Liquidity

A Current Ratio of 0.93 indicates that DOCU may have some problems paying its short term obligations.
DOCU has a Current ratio of 0.93. This is in the lower half of the industry: DOCU underperforms 79.20% of its industry peers.
A Quick Ratio of 0.93 indicates that DOCU may have some problems paying its short term obligations.
DOCU has a worse Quick ratio (0.93) than 78.47% of its industry peers.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.93

6

3. Growth

3.1 Past

DOCU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.83%, which is quite impressive.
DOCU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 97.30% yearly.
The Revenue has grown by 8.55% in the past year. This is quite good.
DOCU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.55% yearly.
EPS 1Y (TTM)29.83%
EPS 3Y50.34%
EPS 5Y97.3%
EPS Q2Q%13.89%
Revenue 1Y (TTM)8.55%
Revenue growth 3Y23.87%
Revenue growth 5Y31.55%
Sales Q2Q%7.3%

3.2 Future

The Earnings Per Share is expected to grow by 7.66% on average over the next years.
Based on estimates for the next years, DOCU will show a small growth in Revenue. The Revenue will grow by 7.28% on average per year.
EPS Next Y11.12%
EPS Next 2Y9.59%
EPS Next 3Y9%
EPS Next 5Y7.66%
Revenue Next Year6.53%
Revenue Next 2Y6.36%
Revenue Next 3Y6.94%
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.

5

4. Valuation

4.1 Price/Earnings Ratio

DOCU is valuated rather expensively with a Price/Earnings ratio of 17.07.
DOCU's Price/Earnings ratio is rather cheap when compared to the industry. DOCU is cheaper than 85.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of DOCU to the average of the S&P500 Index (28.63), we can say DOCU is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.69, the valuation of DOCU can be described as correct.
DOCU's Price/Forward Earnings ratio is rather cheap when compared to the industry. DOCU is cheaper than 86.13% of the companies in the same industry.
DOCU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.22, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.07
Fwd PE 14.69

4.2 Price Multiples

DOCU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DOCU is cheaper than 66.06% 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 91.24% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.94
EV/EBITDA 50.09

4.3 Compensation for Growth

DOCU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.54
PEG (5Y)0.18
EPS Next 2Y9.59%
EPS Next 3Y9%

0

5. Dividend

5.1 Amount

DOCU does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

DOCUSIGN INC

NASDAQ:DOCU (6/21/2024, 7:00:02 PM)

After market: 52.72 -0.02 (-0.04%)

52.74

+0.54 (+1.03%)

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 Cap10.80B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 17.07
Fwd PE 14.69
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)1.54
PEG (5Y)0.18
Profitability
Industry RankSector Rank
ROA 3.66%
ROE 9.43%
ROCE
ROIC
ROICexc
ROICexgc
OM 3.19%
PM (TTM) 3.81%
GM 79.16%
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 Turnover0.96
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.93
Quick Ratio 0.93
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)29.83%
EPS 3Y50.34%
EPS 5Y
EPS Q2Q%
EPS Next Y11.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.55%
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