DOCUSIGN INC (DOCU) Stock Fundamental Analysis
USA - NASDAQ:DOCU - US2561631068 - Common Stock
80.19 USD
-0.05 (-0.06%)
80.19 USD
0 (0%)
Overall DOCU gets a fundamental rating of 5 out of 10. We evaluated DOCU against 280 industry peers in the Software industry. DOCU has an average financial health and profitability rating. DOCU has a decent growth rate and is not valued too expensively.
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.
In multiple years DOCU reported negative net income over the last 5 years.
Each year in the past 5 years DOCU had a positive operating cash flow.
1.2 Ratios
DOCU has a Return On Assets of 7.11%. This is in the better half of the industry: DOCU outperforms 77.14% of its industry peers.
DOCU's Return On Equity of 14.13% is amongst the best of the industry. DOCU outperforms 81.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.89%, DOCU belongs to the top of the industry, outperforming 81.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 14.13% | ||
| ROIC | 8.89% |
ROA(3y)8.62%
ROA(5y)2.54%
ROE(3y)14.69%
ROE(5y)-11.2%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 9.08%, DOCU is in the better half of the industry, outperforming 72.14% of the companies in the same industry.
The Operating Margin of DOCU (7.90%) is better than 71.43% of its industry peers.
DOCU has a Gross Margin of 79.34%. This is in the better half of the industry: DOCU outperforms 78.93% of its industry peers.
DOCU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.9% | ||
| PM (TTM) | 9.08% | ||
| GM | 79.34% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
DOCU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
DOCU has an Altman-Z score of 5.24. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
DOCU's Altman-Z score of 5.24 is fine compared to the rest of the industry. DOCU outperforms 69.29% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.24 |
ROIC/WACC0.79
WACC11.22%
2.3 Liquidity
A Current Ratio of 0.74 indicates that DOCU may have some problems paying its short term obligations.
With a Current ratio value of 0.74, DOCU is not doing good in the industry: 82.50% of the companies in the same industry are doing better.
DOCU has a Quick Ratio of 0.74. This is a bad value and indicates that DOCU is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.74, DOCU is doing worse than 82.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
DOCU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.19%.
DOCU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 62.84% yearly.
The Revenue has grown by 8.29% 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 25.04% yearly.
EPS 1Y (TTM)7.19%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%-5.15%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.78%
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 7.77% on average per year.
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 Y2.79%
EPS Next 2Y5.64%
EPS Next 3Y8.66%
EPS Next 5Y7.77%
Revenue Next Year7.84%
Revenue Next 2Y7.31%
Revenue Next 3Y7.71%
Revenue Next 5Y7.4%
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 22.40, the valuation of DOCU can be described as rather expensive.
73.93% of the companies in the same industry are more expensive than DOCU, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DOCU to the average of the S&P500 Index (27.30), we can say DOCU is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.24, DOCU is valued on the expensive side.
Based on the Price/Forward Earnings ratio, DOCU is valued a bit cheaper than 75.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, DOCU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.4 | ||
| Fwd PE | 20.24 |
4.2 Price Multiples
66.79% of the companies in the same industry are more expensive than DOCU, based on the Enterprise Value to EBITDA ratio.
85.00% 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 | 17.23 | ||
| EV/EBITDA | 41.76 |
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.
The decent profitability rating of DOCU may justify a higher PE ratio.
PEG (NY)8.03
PEG (5Y)0.36
EPS Next 2Y5.64%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
No dividends for DOCU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
80.19
-0.05 (-0.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.49%
Inst Owner Change-0.51%
Ins Owners0.44%
Ins Owner Change0.51%
Market Cap16.13B
Analysts71.72
Price Target95.94 (19.64%)
Short Float %3.19%
Short Ratio2.72
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)2
Avg EPS beat(2)7.78%
Min EPS beat(2)6.77%
Max EPS beat(2)8.79%
EPS beat(4)3
Avg EPS beat(4)4.1%
Min EPS beat(4)-0.64%
Max EPS beat(4)8.79%
EPS beat(8)7
Avg EPS beat(8)9.36%
EPS beat(12)11
Avg EPS beat(12)13.61%
EPS beat(16)13
Avg EPS beat(16)10.63%
Revenue beat(2)2
Avg Revenue beat(2)0.34%
Min Revenue beat(2)0.07%
Max Revenue beat(2)0.61%
Revenue beat(4)2
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-0.38%
Revenue beat(12)5
Avg Revenue beat(12)0.06%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)4.46%
PT rev (3m)1.39%
EPS NQ rev (1m)2.15%
EPS NQ rev (3m)2.18%
EPS NY rev (1m)0.17%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)1.32%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)1.09%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.4 | ||
| Fwd PE | 20.24 | ||
| P/S | 5.21 | ||
| P/FCF | 17.23 | ||
| P/OCF | 15.51 | ||
| P/B | 8.11 | ||
| P/tB | 10.99 | ||
| EV/EBITDA | 41.76 |
EPS(TTM)3.58
EY4.46%
EPS(NY)3.96
Fwd EY4.94%
FCF(TTM)4.65
FCFY5.8%
OCF(TTM)5.17
OCFY6.45%
SpS15.39
BVpS9.89
TBVpS7.3
PEG (NY)8.03
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 14.13% | ||
| ROCE | 11.25% | ||
| ROIC | 8.89% | ||
| ROICexc | 14.53% | ||
| ROICexgc | 23.9% | ||
| OM | 7.9% | ||
| PM (TTM) | 9.08% | ||
| GM | 79.34% | ||
| FCFM | 30.23% |
ROA(3y)8.62%
ROA(5y)2.54%
ROE(3y)14.69%
ROE(5y)-11.2%
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-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 90.03% | ||
| Cap/Sales | 3.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 288.71% | ||
| Profit Quality | 333.04% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 5.24 |
F-Score7
WACC11.22%
ROIC/WACC0.79
Cap/Depr(3y)92.4%
Cap/Depr(5y)93.61%
Cap/Sales(3y)3.23%
Cap/Sales(5y)3.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.19%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%-5.15%
EPS Next Y2.79%
EPS Next 2Y5.64%
EPS Next 3Y8.66%
EPS Next 5Y7.77%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.78%
Revenue Next Year7.84%
Revenue Next 2Y7.31%
Revenue Next 3Y7.71%
Revenue Next 5Y7.4%
EBIT growth 1Y68.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year18.1%
EBIT Next 3Y13.26%
EBIT Next 5Y-3.95%
FCF growth 1Y70.99%
FCF growth 3Y27.4%
FCF growth 5Y83.99%
OCF growth 1Y63.94%
OCF growth 3Y26.17%
OCF growth 5Y54.46%