DocuSign, Inc.
DocuSign, Inc. Fundamental Analysis
DocuSign, Inc. (DOCU) shows moderate financial fundamentals with a PE ratio of 29.55, profit margin of 9.57%, and ROE of 15.14%. The company generates $3.1B in annual revenue with moderate year-over-year growth of 9.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DOCU's fundamental strength across five key dimensions:
Efficiency Score
WeakDOCU struggles to generate sufficient returns from assets.
Valuation Score
WeakDOCU trades at a premium to fair value.
Growth Score
ModerateDOCU shows steady but slowing expansion.
Financial Health Score
ModerateDOCU shows balanced financial health with some risks.
Profitability Score
ModerateDOCU maintains healthy but balanced margins.
Key Financial Metrics
Is DOCU Expensive or Cheap?
P/E Ratio
DOCU trades at 29.55 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DOCU's PEG of 4.08 indicates potential overvaluation.
Price to Book
The market values DocuSign, Inc. at 4.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.24 times EBITDA. This signals the market has high growth expectations.
How Well Does DOCU Make Money?
Net Profit Margin
For every $100 in sales, DocuSign, Inc. keeps $9.57 as profit after all expenses.
Operating Margin
Core operations generate 8.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.14 in profit for every $100 of shareholder equity.
ROA
DocuSign, Inc. generates $7.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DocuSign, Inc. generates strong operating cash flow of $1.08B, reflecting robust business health.
Free Cash Flow
DocuSign, Inc. generates strong free cash flow of $976.49M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.88 in free cash annually.
FCF Yield
DOCU converts 11.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How DOCU Stacks Against Its Sector Peers
| Metric | DOCU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.55 | 35.19 | Better (Cheaper) |
| ROE | 15.14% | 1155.00% | Weak |
| Net Margin | 9.57% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 0.73 | 4.71 | Weak Liquidity |
| ROA | 7.59% | -314918.00% (disorted) | Weak |
DOCU outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DocuSign, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
160.97%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
111.49%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
752.69%
Industry Style: Growth, Innovation, High Beta
High Growth