DOCUSIGN INC (DOCU) Fundamental Analysis & Valuation
NASDAQ:DOCU • US2561631068
47.715 USD
-0.92 (-1.9%)
Last: Mar 11, 2026, 02:02 PM
This DOCU fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 5 out of 10 to DOCU. DOCU was compared to 277 industry peers in the Software industry. DOCU has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on DOCU. With these ratings, DOCU could be worth investigating further for value investing!.
1. DOCU Profitability Analysis
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.
- Each year in the past 5 years DOCU had a positive operating cash flow.
1.2 Ratios
- DOCU has a better Return On Assets (7.59%) than 80.51% of its industry peers.
- DOCU's Return On Equity of 15.25% is amongst the best of the industry. DOCU outperforms 81.95% of its industry peers.
- The Return On Invested Capital of DOCU (9.75%) is better than 85.20% 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 has a better Profit Margin (9.57%) than 72.20% of its industry peers.
- DOCU has a better Operating Margin (8.59%) than 74.73% of its industry peers.
- DOCU's Gross Margin of 79.31% is fine compared to the rest of the industry. DOCU outperforms 79.06% 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 | 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. DOCU Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DOCU 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.
- 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 3.21. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
- DOCU has a better Altman-Z score (3.21) than 66.43% 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 | 3.21 |
ROIC/WACC0.89
WACC10.89%
2.3 Liquidity
- A Current Ratio of 0.73 indicates that DOCU may have some problems paying its short term obligations.
- The Current ratio of DOCU (0.73) is worse than 88.09% of its industry peers.
- DOCU has a Quick Ratio of 0.73. 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 Quick ratio (0.73) than 87.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. DOCU Growth Analysis
3.1 Past
- DOCU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.96%.
- Measured over the past years, DOCU shows a very strong growth in Earnings Per Share. The EPS has been growing by 62.84% on average per year.
- DOCU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.45%.
- DOCU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.04% yearly.
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
- Based on estimates for the next years, DOCU will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.69% on average per year.
- The Revenue is expected to grow by 6.97% on average over the next years.
EPS Next Y8.78%
EPS Next 2Y8.72%
EPS Next 3Y8.9%
EPS Next 5Y8.69%
Revenue Next Year8.37%
Revenue Next 2Y7.5%
Revenue Next 3Y7.43%
Revenue Next 5Y6.97%
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. DOCU Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.93 indicates a correct valuation of DOCU.
- 84.12% of the companies in the same industry are more expensive than DOCU, based on the Price/Earnings ratio.
- DOCU is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 11.37, the valuation of DOCU can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DOCU indicates a rather cheap valuation: DOCU is cheaper than 82.31% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, DOCU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DOCU is valued a bit cheaper than the industry average as 72.56% of the companies are valued more expensively.
- 90.61% 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 | 9.67 | ||
| EV/EBITDA | 22.19 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- DOCU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.47
PEG (5Y)0.21
EPS Next 2Y8.72%
EPS Next 3Y8.9%
5. DOCU Dividend Analysis
5.1 Amount
- DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DOCU Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:DOCU (3/11/2026, 2:02:53 PM)
47.715
-0.92 (-1.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-04 2025-12-04/amc
Earnings (Next)03-17 2026-03-17/amc
Inst Owners85.86%
Inst Owner Change-1.17%
Ins Owners0.47%
Ins Owner Change0.59%
Market Cap9.56B
Revenue(TTM)3.16B
Net Income(TTM)302.27M
Analysts71.03
Price Target80.82 (69.38%)
Short Float %7.09%
Short Ratio3.13
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)-7.23%
PT rev (3m)-13.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.22%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 11.37 | ||
| P/S | 3.03 | ||
| P/FCF | 9.67 | ||
| P/OCF | 8.72 | ||
| P/B | 4.82 | ||
| P/tB | 6.53 | ||
| EV/EBITDA | 22.19 |
EPS(TTM)3.69
EY7.73%
EPS(NY)4.2
Fwd EY8.79%
FCF(TTM)4.93
FCFY10.34%
OCF(TTM)5.47
OCFY11.47%
SpS15.77
BVpS9.89
TBVpS7.31
PEG (NY)1.47
PEG (5Y)0.21
Graham Number28.66
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 | 3.21 |
F-Score7
WACC10.89%
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 Y8.78%
EPS Next 2Y8.72%
EPS Next 3Y8.9%
EPS Next 5Y8.69%
Revenue 1Y (TTM)8.45%
Revenue growth 3Y12.2%
Revenue growth 5Y25.04%
Sales Q2Q%8.42%
Revenue Next Year8.37%
Revenue Next 2Y7.5%
Revenue Next 3Y7.43%
Revenue Next 5Y6.97%
EBIT growth 1Y47.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year21.68%
EBIT Next 3Y12.03%
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 7 / 10 to DOCUSIGN INC (DOCU). This can be considered as Undervalued.
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 8.78% in the next year.