DOCUSIGN INC (DOCU)
US2561631068 - Common Stock
Overall DOCU gets a fundamental rating of 5 out of 10. We evaluated DOCU against 276 industry peers in the Software industry. Both the profitability and the financial health of DOCU get a neutral evaluation. Nothing too spectacular is happening here. DOCU is not overvalued while it is showing excellent growth. This is an interesting combination. This makes DOCU very considerable for growth investing!
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.
In the past 5 years DOCU reported 4 times negative net income.
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 74.09% of its industry peers.
DOCU's Return On Equity of 6.55% is fine compared to the rest of the industry. DOCU outperforms 78.10% of its industry peers.
The Return On Invested Capital of DOCU (3.73%) is better than 76.28% of its industry peers.
| 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 has a Profit Margin of 2.68%. This is in the better half of the industry: DOCU outperforms 72.99% of its industry peers.
DOCU has a Operating Margin of 2.24%. This is in the better half of the industry: DOCU outperforms 69.71% of its industry peers.
The Gross Margin of DOCU (79.27%) is better than 80.66% of its industry peers.
DOCU's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DOCU is destroying value.
Compared to 1 year ago, DOCU has more shares outstanding
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
An Altman-Z score of 3.96 indicates that DOCU is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.96, DOCU is doing good in the industry, outperforming 62.77% 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 | 3.96 |
ROIC/WACC0.38
WACC9.76%
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.
DOCU has a worse Current ratio (0.94) than 79.56% of its industry peers.
DOCU has a Quick 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 Quick ratio of DOCU (0.94) is worse than 78.83% of its industry peers.
| 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.
The Revenue has grown by 9.77% in the past year. This is quite good.
Measured over the past years, DOCU shows a very strong growth in Revenue. The Revenue has been growing by 31.55% on average per year.
EPS 1Y (TTM)46.57%
EPS 3Y50.34%
EPS 5Y97.3%
EPS growth Q2Q16.92%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y23.87%
Revenue growth 5Y31.55%
Revenue growth Q2Q8%
3.2 Future
DOCU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.33% yearly.
The Revenue is expected to grow by 8.51% on average over the next years. This is quite good.
EPS Next Y10.39%
EPS Next 2Y9.37%
EPS Next 3Y7.72%
EPS Next 5Y7.33%
Revenue Next Year6.46%
Revenue Next 2Y6.41%
Revenue Next 3Y6.32%
Revenue Next 5Y8.51%
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
DOCU is valuated rather expensively with a Price/Earnings ratio of 19.16.
Based on the Price/Earnings ratio, DOCU is valued cheaply inside the industry as 85.77% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DOCU to the average of the S&P500 Index (24.55), we can say DOCU is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.36, the valuation of DOCU can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DOCU indicates a rather cheap valuation: DOCU is cheaper than 86.50% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DOCU to the average of the S&P500 Index (20.92), we can say DOCU is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 17.36 |
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 65.69% of the companies listed in the same industry.
91.24% 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 | 13.27 | ||
| EV/EBITDA | 65.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.84
PEG (5Y)0.2
EPS Next 2Y9.37%
EPS Next 3Y7.72%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOCUSIGN INC
NASDAQ:DOCU (5/1/2024, 7:00:01 PM)
After market: 57.5 +0.2 (+0.35%)57.3
+0.7 (+1.24%)
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 Cap11.77B
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)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 17.36 | ||
| 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)1.84
PEG (5Y)0.2
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)
Growth
EPS 1Y (TTM)46.57%
EPS 3Y50.34%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.77%
Revenue growth 3Y23.87%
Revenue growth 5Y
Revenue growth 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