DOCUSIGN INC (DOCU) Stock Fundamental Analysis
NASDAQ:DOCU - Nasdaq - US2561631068 - Common Stock - Currency: USD
Taking everything into account, DOCU scores 5 out of 10 in our fundamental rating. DOCU was compared to 282 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
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
The Return On Assets of DOCU (28.02%) is better than 97.16% of its industry peers.
DOCU has a better Return On Equity (54.90%) than 96.45% of its industry peers.
DOCU has a better Return On Invested Capital (8.63%) 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
DOCU's Profit Margin of 36.50% is amongst the best of the industry. DOCU outperforms 96.45% of its industry peers.
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.
DOCU's Gross Margin of 79.23% is fine compared to the rest of the industry. DOCU outperforms 78.37% of its industry peers.
DOCU's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DOCU is destroying value.
DOCU has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DOCU has more shares outstanding
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 5.33. This indicates that DOCU is financially healthy and has little risk of bankruptcy at the moment.
DOCU has a better Altman-Z score (5.33) than 70.21% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.33 |
ROIC/WACC0.96
WACC8.99%
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.
With a Current ratio value of 0.79, DOCU is not doing good in the industry: 82.62% of the companies in the same industry are doing better.
A Quick Ratio of 0.79 indicates that DOCU may have some problems paying its short term obligations.
The Quick ratio of DOCU (0.79) is worse than 82.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
DOCU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.48%, which is quite good.
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.
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)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.
DOCU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.40% yearly.
EPS Next Y2.57%
EPS Next 2Y5.47%
EPS Next 3Y8.68%
EPS Next 5Y7.77%
Revenue Next Year6.65%
Revenue Next 2Y6.57%
Revenue Next 3Y7.8%
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.
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 21.77, the valuation of DOCU can be described as rather expensive.
Based on the Price/Earnings ratio, DOCU is valued a bit cheaper than 78.01% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. DOCU is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 20.01, the valuation of DOCU can be described as rather expensive.
Based on the Price/Forward Earnings ratio, DOCU is valued a bit cheaper than the industry average as 77.66% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. DOCU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 20.01 |
4.2 Price Multiples
DOCU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DOCU is cheaper than 69.86% of the companies in the same industry.
DOCU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DOCU is cheaper than 86.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.47 | ||
| EV/EBITDA | 41.61 |
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.
The decent profitability rating of DOCU may justify a higher PE ratio.
PEG (NY)8.48
PEG (5Y)0.35
EPS Next 2Y5.47%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
DOCU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.02
+1.87 (+2.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners86.38%
Inst Owner Change-3.09%
Ins Owners0.41%
Ins Owner Change0.59%
Market Cap16.00B
Analysts69.66
Price Target91.31 (15.55%)
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)-7.87%
EPS NQ rev (1m)2.41%
EPS NQ rev (3m)2.41%
EPS NY rev (1m)2.03%
EPS NY rev (3m)1.89%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 20.01 | ||
| P/S | 5.28 | ||
| P/FCF | 17.47 | ||
| P/OCF | 15.78 | ||
| P/B | 7.94 | ||
| P/tB | 10.74 | ||
| EV/EBITDA | 41.61 |
EPS(TTM)3.63
EY4.59%
EPS(NY)3.95
Fwd EY5%
FCF(TTM)4.52
FCFY5.72%
OCF(TTM)5.01
OCFY6.34%
SpS14.97
BVpS9.95
TBVpS7.36
PEG (NY)8.48
PEG (5Y)0.35
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 | 5.33 |
F-Score6
WACC8.99%
ROIC/WACC0.96
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 Y2.57%
EPS Next 2Y5.47%
EPS Next 3Y8.68%
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 2Y6.57%
Revenue Next 3Y7.8%
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%