65.19 USD
+0.85 (+1.32%)
64.9404 USD
-0.25 (-0.38%)
DOCU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 valued too expensively and it also shows a decent growth rate.
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.
DOCU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.59%, DOCU is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
DOCU has a better Return On Equity (15.25%) than 82.25% of its industry peers.
DOCU's Return On Invested Capital of 9.75% is amongst the best of the industry. DOCU outperforms 84.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 15.25% | ||
| ROIC | 9.75% |
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
DOCU's Profit Margin of 9.57% is fine compared to the rest of the industry. DOCU outperforms 69.93% of its industry peers.
The Operating Margin of DOCU (8.59%) is better than 74.28% of its industry peers.
Looking at the Gross Margin, with a value of 79.31%, DOCU is in the better half of the industry, outperforming 78.99% 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 | 8.59% | ||
| PM (TTM) | 9.57% | ||
| GM | 79.31% |
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 4.17. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.17, DOCU is in the better half of the industry, outperforming 68.12% 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 | 4.17 |
ROIC/WACC0.89
WACC10.94%
2.3 Liquidity
A Current Ratio of 0.73 indicates that DOCU may have some problems paying its short term obligations.
DOCU's Current ratio of 0.73 is on the low side compared to the rest of the industry. DOCU is outperformed by 86.96% of its industry peers.
A Quick Ratio of 0.73 indicates that DOCU may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.73, DOCU is doing worse than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.96% 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
DOCU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.45%.
Measured over the past years, DOCU shows a very strong growth in Revenue. The Revenue has been growing by 25.04% on average per year.
EPS 1Y (TTM)6.96%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%12.22%
Revenue 1Y (TTM)8.45%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.42%
3.2 Future
DOCU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.07% yearly.
DOCU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.67% yearly.
EPS Next Y8.79%
EPS Next 2Y8.77%
EPS Next 3Y9.1%
EPS Next 5Y8.07%
Revenue Next Year8.37%
Revenue Next 2Y7.59%
Revenue Next 3Y7.63%
Revenue Next 5Y7.67%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 17.67, which indicates a rather expensive current valuation of DOCU.
DOCU's Price/Earnings ratio is a bit cheaper when compared to the industry. DOCU is cheaper than 77.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.17, DOCU is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.52, which indicates a correct valuation of DOCU.
81.16% of the companies in the same industry are more expensive than DOCU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.79. DOCU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
68.48% of the companies in the same industry are more expensive than DOCU, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DOCU is valued cheaply inside the industry as 88.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.27 | ||
| EV/EBITDA | 30.39 |
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)2.01
PEG (5Y)0.28
EPS Next 2Y8.77%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
65.19
+0.85 (+1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.69%
Inst Owner Change0%
Ins Owners0.5%
Ins Owner Change1.05%
Market Cap13.11B
Revenue(TTM)3.16B
Net Income(TTM)302.27M
Analysts72.14
Price Target88.81 (36.23%)
Short Float %2.76%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)7.48%
Min EPS beat(2)6.77%
Max EPS beat(2)8.2%
EPS beat(4)3
Avg EPS beat(4)5.78%
Min EPS beat(4)-0.64%
Max EPS beat(4)8.79%
EPS beat(8)7
Avg EPS beat(8)7.57%
EPS beat(12)11
Avg EPS beat(12)11.53%
EPS beat(16)13
Avg EPS beat(16)9.6%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)0.61%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-0.57%
Max Revenue beat(4)0.61%
Revenue beat(8)2
Avg Revenue beat(8)-0.39%
Revenue beat(12)4
Avg Revenue beat(12)-0.07%
Revenue beat(16)7
Avg Revenue beat(16)0.13%
PT rev (1m)-8.04%
PT rev (3m)-8.04%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)2.83%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 15.52 | ||
| P/S | 4.15 | ||
| P/FCF | 13.27 | ||
| P/OCF | 11.96 | ||
| P/B | 6.62 | ||
| P/tB | 8.96 | ||
| EV/EBITDA | 30.39 |
EPS(TTM)3.69
EY5.66%
EPS(NY)4.2
Fwd EY6.44%
FCF(TTM)4.91
FCFY7.54%
OCF(TTM)5.45
OCFY8.36%
SpS15.71
BVpS9.85
TBVpS7.28
PEG (NY)2.01
PEG (5Y)0.28
Graham Number28.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 15.25% | ||
| ROCE | 12.34% | ||
| ROIC | 9.75% | ||
| ROICexc | 15.77% | ||
| ROICexgc | 25.5% | ||
| OM | 8.59% | ||
| PM (TTM) | 9.57% | ||
| GM | 79.31% | ||
| FCFM | 31.27% |
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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 91.05% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 281.19% | ||
| Profit Quality | 326.83% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 4.17 |
F-Score7
WACC10.94%
ROIC/WACC0.89
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)6.96%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%12.22%
EPS Next Y8.79%
EPS Next 2Y8.77%
EPS Next 3Y9.1%
EPS Next 5Y8.07%
Revenue 1Y (TTM)8.45%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.42%
Revenue Next Year8.37%
Revenue Next 2Y7.59%
Revenue Next 3Y7.63%
Revenue Next 5Y7.67%
EBIT growth 1Y47.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year23.02%
EBIT Next 3Y12.06%
EBIT Next 5Y-3.95%
FCF growth 1Y31.45%
FCF growth 3Y27.4%
FCF growth 5Y83.99%
OCF growth 1Y29.53%
OCF growth 3Y26.17%
OCF growth 5Y54.46%
DOCUSIGN INC / DOCU FAQ
What is the ChartMill fundamental rating of DOCUSIGN INC (DOCU) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DOCU.
What is the valuation status of DOCUSIGN INC (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.
What is the earnings growth outlook for DOCUSIGN INC?
The Earnings per Share (EPS) of DOCUSIGN INC (DOCU) is expected to grow by 8.79% in the next year.