DOCUSIGN INC (DOCU) Stock Fundamental Analysis
USA - NASDAQ:DOCU - US2561631068 - Common Stock
71.49 USD
+0.41 (+0.58%)
71.7209 USD
+0.23 (+0.32%)
Overall DOCU gets a fundamental rating of 5 out of 10. We evaluated DOCU against 286 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DOCU was profitable.
DOCU had a positive operating cash flow in the past year.
In multiple years DOCU reported negative net income over the last 5 years.
DOCU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DOCU's Return On Assets of 7.11% is fine compared to the rest of the industry. DOCU outperforms 76.92% of its industry peers.
DOCU has a Return On Equity of 14.13%. This is amongst the best in the industry. DOCU outperforms 80.77% 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 82.17% 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
The Profit Margin of DOCU (9.08%) is better than 71.33% of its industry peers.
Looking at the Operating Margin, with a value of 7.90%, DOCU is in the better half of the industry, outperforming 71.33% of the companies in the same industry.
DOCU has a Gross Margin of 79.34%. This is in the better half of the industry: DOCU outperforms 79.37% 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
DOCU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DOCU has less shares outstanding than it did 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 4.70. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.70, DOCU is doing good in the industry, outperforming 67.13% of the companies in the same industry.
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 | 4.7 |
ROIC/WACC0.81
WACC11.03%
2.3 Liquidity
DOCU has a Current 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.
DOCU's Current ratio of 0.74 is on the low side compared to the rest of the industry. DOCU is outperformed by 83.22% of its industry peers.
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.
The Quick ratio of DOCU (0.74) is worse than 83.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.19% over the past year.
The Earnings Per Share has been growing by 62.84% on average over the past years. This is a very strong growth
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.07% on average per year.
The Revenue is expected to grow by 7.67% on average over the next years.
EPS Next Y5.86%
EPS Next 2Y7.63%
EPS Next 3Y8.85%
EPS Next 5Y8.07%
Revenue Next Year7.91%
Revenue Next 2Y7.34%
Revenue Next 3Y7.72%
Revenue Next 5Y7.67%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.97, the valuation of DOCU can be described as rather expensive.
DOCU's Price/Earnings ratio is a bit cheaper when compared to the industry. DOCU is cheaper than 77.97% of the companies in the same industry.
DOCU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.91.
A Price/Forward Earnings ratio of 17.38 indicates a rather expensive valuation of DOCU.
Based on the Price/Forward Earnings ratio, DOCU is valued a bit cheaper than 79.72% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, DOCU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 17.38 |
4.2 Price Multiples
DOCU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DOCU is cheaper than 69.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DOCU is valued cheaply inside the industry as 88.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.36 | ||
| EV/EBITDA | 36.9 |
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)3.41
PEG (5Y)0.32
EPS Next 2Y7.63%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
No dividends for DOCU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.49
+0.41 (+0.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.29%
Inst Owner Change-0.23%
Ins Owners0.48%
Ins Owner Change0.84%
Market Cap14.38B
Revenue(TTM)3.10B
Net Income(TTM)280.97M
Analysts71.72
Price Target96.58 (35.1%)
Short Float %2.65%
Short Ratio1.64
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)0.66%
PT rev (3m)5.77%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)2.26%
EPS NY rev (1m)0%
EPS NY rev (3m)3.16%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.97 | ||
| Fwd PE | 17.38 | ||
| P/S | 4.64 | ||
| P/FCF | 15.36 | ||
| P/OCF | 13.83 | ||
| P/B | 7.23 | ||
| P/tB | 9.8 | ||
| EV/EBITDA | 36.9 |
EPS(TTM)3.58
EY5.01%
EPS(NY)4.11
Fwd EY5.75%
FCF(TTM)4.65
FCFY6.51%
OCF(TTM)5.17
OCFY7.23%
SpS15.39
BVpS9.89
TBVpS7.3
PEG (NY)3.41
PEG (5Y)0.32
Graham Number28.22
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
ROICexgc growth 3YN/A
ROICexgc 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 | 4.7 |
F-Score7
WACC11.03%
ROIC/WACC0.81
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 Y5.86%
EPS Next 2Y7.63%
EPS Next 3Y8.85%
EPS Next 5Y8.07%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.78%
Revenue Next Year7.91%
Revenue Next 2Y7.34%
Revenue Next 3Y7.72%
Revenue Next 5Y7.67%
EBIT growth 1Y68.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year19.89%
EBIT Next 3Y11.91%
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%
DOCUSIGN INC / DOCU FAQ
Can you provide the ChartMill fundamental rating for DOCUSIGN INC?
ChartMill assigns a fundamental rating of 5 / 10 to DOCU.
What is the valuation status for DOCU stock?
ChartMill assigns a valuation rating of 5 / 10 to DOCUSIGN INC (DOCU). This can be considered as Fairly Valued.
How profitable is DOCUSIGN INC (DOCU) stock?
DOCUSIGN INC (DOCU) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for DOCU stock?
The Price/Earnings (PE) ratio for DOCUSIGN INC (DOCU) is 19.97 and the Price/Book (PB) ratio is 7.23.
How financially healthy is DOCUSIGN INC?
The financial health rating of DOCUSIGN INC (DOCU) is 5 / 10.