DOCUSIGN INC (DOCU)
US2561631068 - Common Stock
Overall DOCU gets a fundamental rating of 5 out of 10. We evaluated DOCU against 284 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 the past 5 years DOCU reported 4 times negative net income.
Each year in the past 5 years DOCU had a positive operating cash flow.
1.2 Ratios
DOCU's Return On Assets of 3.66% is fine compared to the rest of the industry. DOCU outperforms 74.20% of its industry peers.
DOCU's Return On Equity of 9.43% is amongst the best of the industry. DOCU outperforms 80.57% of its industry peers.
DOCU has a Return On Invested Capital of 5.35%. This is in the better half of the industry: DOCU outperforms 78.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 9.43% | ||
| ROIC | 5.35% |
ROA(3y)-1.17%
ROA(5y)-4.99%
ROE(3y)-11.55%
ROE(5y)-29.5%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DOCU (3.81%) is better than 71.73% of its industry peers.
The Operating Margin of DOCU (3.19%) is better than 70.32% of its industry peers.
DOCU has a Gross Margin of 79.16%. This is in the better half of the industry: DOCU outperforms 79.51% of its industry peers.
In the last couple of years the Gross Margin of DOCU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.19% | ||
| PM (TTM) | 3.81% | ||
| GM | 79.16% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.9%
GM growth 5Y1.8%
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 increased 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
An Altman-Z score of 3.94 indicates that DOCU is not in any danger for bankruptcy at the moment.
DOCU's Altman-Z score of 3.94 is fine compared to the rest of the industry. DOCU outperforms 60.42% 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 | 3.94 |
ROIC/WACC0.54
WACC9.88%
2.3 Liquidity
DOCU has a Current Ratio of 0.93. 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 0.93 is on the low side compared to the rest of the industry. DOCU is outperformed by 78.09% of its industry peers.
A Quick Ratio of 0.93 indicates that DOCU may have some problems paying its short term obligations.
DOCU has a Quick ratio of 0.93. This is in the lower half of the industry: DOCU underperforms 77.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
DOCU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.83%, which is quite impressive.
The Earnings Per Share has been growing by 97.30% on average over the past years. This is a very strong growth
Looking at the last year, DOCU shows a quite strong growth in Revenue. The Revenue has grown by 8.55% in the last year.
Measured over the past years, DOCU shows a very strong growth in Revenue. The Revenue has been growing by 31.55% on average per year.
EPS 1Y (TTM)29.83%
EPS 3Y50.34%
EPS 5Y97.3%
EPS Q2Q%13.89%
Revenue 1Y (TTM)8.55%
Revenue growth 3Y23.87%
Revenue growth 5Y31.55%
Sales Q2Q%7.3%
3.2 Future
DOCU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.41% yearly.
The Revenue is expected to grow by 6.13% on average over the next years.
EPS Next Y11.12%
EPS Next 2Y9.59%
EPS Next 3Y9.48%
EPS Next 5Y6.41%
Revenue Next Year6.53%
Revenue Next 2Y6.36%
Revenue Next 3Y6.93%
Revenue Next 5Y6.13%
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
A Price/Earnings ratio of 18.09 indicates a rather expensive valuation of DOCU.
Based on the Price/Earnings ratio, DOCU is valued cheaply inside the industry as 86.93% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.41. DOCU is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.57, DOCU is valued correctly.
Based on the Price/Forward Earnings ratio, DOCU is valued cheaply inside the industry as 85.87% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DOCU to the average of the S&P500 Index (20.59), we can say DOCU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 15.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DOCU indicates a somewhat cheap valuation: DOCU is cheaper than 65.72% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DOCU is valued cheaply inside the industry as 90.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.65 | ||
| EV/EBITDA | 53.27 |
4.3 Compensation for Growth
DOCU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.63
PEG (5Y)0.19
EPS Next 2Y9.59%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DOCUSIGN INC
NASDAQ:DOCU (7/26/2024, 7:25:30 PM)
After market: 55.89 -0.01 (-0.02%)55.9
+0.8 (+1.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap11.44B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 15.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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SpS
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PEG (NY)1.63
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 9.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.19% | ||
| PM (TTM) | 3.81% | ||
| GM | 79.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)29.83%
EPS 3Y50.34%
EPS 5Y
EPS Q2Q%
EPS Next Y11.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.55%
Revenue growth 3Y23.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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