DOCUSIGN INC (DOCU) Stock Fundamental Analysis
NASDAQ:DOCU - Nasdaq - US2561631068 - Common Stock - Currency: USD
Overall DOCU gets a fundamental rating of 5 out of 10. We evaluated DOCU against 282 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
DOCU had positive earnings in the past year.
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.
In the past 5 years DOCU always reported a positive cash flow from operatings.
1.2 Ratios
DOCU's Return On Assets of 28.02% is amongst the best of the industry. DOCU outperforms 97.16% of its industry peers.
DOCU has a Return On Equity of 54.90%. This is amongst the best in the industry. DOCU outperforms 96.45% of its industry peers.
The Return On Invested Capital of DOCU (8.63%) is better than 83.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.02% | ||
| ROE | 54.9% | ||
| ROIC | 8.63% |
ROA(3y)8.62%
ROA(5y)2.54%
ROE(3y)14.69%
ROE(5y)-11.21%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 36.50%, DOCU belongs to the best of the industry, outperforming 96.45% of the companies in the same industry.
DOCU has a Operating Margin of 7.96%. This is in the better half of the industry: DOCU outperforms 74.47% of its industry peers.
The Gross Margin of DOCU (79.23%) is better than 78.37% of its industry peers.
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 | 7.96% | ||
| PM (TTM) | 36.5% | ||
| GM | 79.23% |
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.
The number of shares outstanding for DOCU has been reduced compared to 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 5.14. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
DOCU has a Altman-Z score of 5.14. This is in the better half of the industry: DOCU outperforms 69.50% of its industry peers.
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 | 5.14 |
ROIC/WACC0.8
WACC10.76%
2.3 Liquidity
DOCU has a Current Ratio of 0.79. 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 0.79 is on the low side compared to the rest of the industry. DOCU is outperformed by 81.91% of its industry peers.
A Quick Ratio of 0.79 indicates that DOCU may have some problems paying its short term obligations.
With a Quick ratio value of 0.79, DOCU is not doing good in the industry: 81.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.48% 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
Looking at the last year, DOCU shows a small growth in Revenue. The Revenue has grown by 7.85% in the last year.
The Revenue has been growing by 25.04% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)17.48%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%9.76%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%7.61%
3.2 Future
The Earnings Per Share is expected to grow by 7.77% on average over the next years.
The Revenue is expected to grow by 7.40% on average over the next years.
EPS Next Y2.61%
EPS Next 2Y5.58%
EPS Next 3Y8.67%
EPS Next 5Y7.77%
Revenue Next Year6.65%
Revenue Next 2Y6.6%
Revenue Next 3Y7.86%
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
The Price/Earnings ratio is 20.99, which indicates a rather expensive current valuation of DOCU.
78.72% of the companies in the same industry are more expensive than DOCU, based on the Price/Earnings ratio.
DOCU is valuated rather cheaply when we compare the Price/Earnings ratio to 27.52, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.26, DOCU is valued on the expensive side.
78.72% of the companies in the same industry are more expensive than DOCU, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, DOCU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.99 | ||
| Fwd PE | 19.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than the industry average as 69.15% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DOCU indicates a rather cheap valuation: DOCU is cheaper than 86.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.81 | ||
| EV/EBITDA | 39.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DOCU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.03
PEG (5Y)0.33
EPS Next 2Y5.58%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
No dividends for DOCU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
76.21
+2.66 (+3.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.38%
Inst Owner Change0%
Ins Owners0.41%
Ins Owner Change0.49%
Market Cap15.40B
Analysts71.03
Price Target91.31 (19.81%)
Short Float %4.37%
Short Ratio2.96
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)1
Avg EPS beat(2)4.07%
Min EPS beat(2)-0.64%
Max EPS beat(2)8.79%
EPS beat(4)3
Avg EPS beat(4)7.02%
Min EPS beat(4)-0.64%
Max EPS beat(4)18.44%
EPS beat(8)7
Avg EPS beat(8)9.41%
EPS beat(12)11
Avg EPS beat(12)13.26%
EPS beat(16)13
Avg EPS beat(16)11.16%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)0.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)0.07%
Revenue beat(8)1
Avg Revenue beat(8)-0.52%
Revenue beat(12)5
Avg Revenue beat(12)0.12%
Revenue beat(16)8
Avg Revenue beat(16)0.39%
PT rev (1m)-3.51%
PT rev (3m)-6.76%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)2.75%
EPS NY rev (1m)2.08%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.99 | ||
| Fwd PE | 19.26 | ||
| P/S | 5.08 | ||
| P/FCF | 16.81 | ||
| P/OCF | 15.19 | ||
| P/B | 7.64 | ||
| P/tB | 10.33 | ||
| EV/EBITDA | 39.91 |
EPS(TTM)3.63
EY4.76%
EPS(NY)3.96
Fwd EY5.19%
FCF(TTM)4.53
FCFY5.95%
OCF(TTM)5.02
OCFY6.58%
SpS15
BVpS9.97
TBVpS7.37
PEG (NY)8.03
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.02% | ||
| ROE | 54.9% | ||
| ROCE | 10.93% | ||
| ROIC | 8.63% | ||
| ROICexc | 15.15% | ||
| ROICexgc | 26% | ||
| OM | 7.96% | ||
| PM (TTM) | 36.5% | ||
| GM | 79.23% | ||
| FCFM | 30.22% |
ROA(3y)8.62%
ROA(5y)2.54%
ROE(3y)14.69%
ROE(5y)-11.21%
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-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 86.09% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 285.76% | ||
| Profit Quality | 82.81% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 5.14 |
F-Score6
WACC10.76%
ROIC/WACC0.8
Cap/Depr(3y)92.4%
Cap/Depr(5y)93.61%
Cap/Sales(3y)3.23%
Cap/Sales(5y)3.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.48%
EPS 3Y21.69%
EPS 5Y62.84%
EPS Q2Q%9.76%
EPS Next Y2.61%
EPS Next 2Y5.58%
EPS Next 3Y8.67%
EPS Next 5Y7.77%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%7.61%
Revenue Next Year6.65%
Revenue Next 2Y6.6%
Revenue Next 3Y7.86%
Revenue Next 5Y7.4%
EBIT growth 1Y169.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year17.76%
EBIT Next 3Y13.78%
EBIT Next 5Y-3.95%
FCF growth 1Y95.31%
FCF growth 3Y27.4%
FCF growth 5Y83.95%
OCF growth 1Y86.34%
OCF growth 3Y26.17%
OCF growth 5Y54.46%