DB:DS3

Stock Analysis Report

Executive Summary

DocuSign, Inc. provides cloud based software in the United States.

Rewards

Revenue is forecast to grow 21.5% per year

Risk Analysis

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

How has DocuSign's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DS3's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

DS3

0.9%

DE Software

1.0%

DE Market


1 Year Return

74.5%

DS3

34.9%

DE Software

14.2%

DE Market

Return vs Industry: DS3 exceeded the German Software industry which returned 34.9% over the past year.

Return vs Market: DS3 exceeded the German Market which returned 14.2% over the past year.


Shareholder returns

DS3IndustryMarket
7 Day-1.9%0.9%1.0%
30 Day7.4%-0.5%0.04%
90 Day15.5%13.5%6.0%
1 Year74.5%74.5%36.7%34.9%17.8%14.2%
3 Yearn/a60.5%54.1%19.2%8.7%
5 Yearn/a138.5%121.5%36.0%17.5%

Price Volatility Vs. Market

How volatile is DocuSign's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is DocuSign undervalued compared to its fair value and its price relative to the market?

23.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DS3 (€65.87) is trading above our estimate of fair value (€27.94)

Significantly Below Fair Value: DS3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DS3 is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: DS3 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DS3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DS3 is overvalued based on its PB Ratio (23.2x) compared to the DE Software industry average (3x).


Next Steps

Future Growth

How is DocuSign forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DS3 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: DS3 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: DS3 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: DS3's revenue (21.5% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: DS3's revenue (21.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DS3's Return on Equity is forecast to be low in 3 years time (19.9%).


Next Steps

Past Performance

How has DocuSign performed over the past 5 years?

-21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DS3 is currently unprofitable.

Growing Profit Margin: DS3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DS3 is unprofitable, and losses have increased over the past 5 years at a rate of -21.5% per year.

Accelerating Growth: Unable to compare DS3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DS3 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.6%).


Return on Equity

High ROE: DS3 has a negative Return on Equity (-39.9%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DocuSign's financial position?


Financial Position Analysis

Short Term Liabilities: DS3's short term assets ($869.4M) exceed its short term liabilities ($588.5M).

Long Term Liabilities: DS3's short term assets ($869.4M) exceed its long term liabilities ($628.5M).


Debt to Equity History and Analysis

Debt Level: DS3's debt to equity ratio (80.5%) is considered high.

Reducing Debt: Insufficient data to determine if DS3's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: DS3 has a low level of unsold assets or inventory.

Debt Coverage by Assets: DS3's debt is covered by short term assets (assets are 1.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable DS3 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DS3 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 62.1% per year.


Next Steps

Dividend

What is DocuSign's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate DS3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DS3's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DS3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DS3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DS3's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of DocuSign's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Dan Springer (56yo)

2.9yrs

Tenure

US$13,436,138

Compensation

Mr. Daniel D. Springer, also known as Dan, has been Chief Executive Officer, President and Member of the Board of Directors at DocuSign, Inc. since January 2017. Mr. Springer has been an Independent Operat ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD13.44M) is above average for companies of similar size in the German market ($USD4.63M).

Compensation vs Earnings: Dan's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.9yrs

Average Tenure

53yo

Average Age

Experienced Management: DS3's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: DS3's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€2,693,75311 Jul 19
Jackson Square Ventures
EntityCompany
Shares58,593
Max Price€45.97
Sell€1,241,29711 Jul 19
Peter Solvik
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares27,000
Max Price€45.97

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 70.2%.


Management Team

  • Mike Sheridan (54yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
    • Compensation: US$4.58m
  • Dan Springer (56yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$13.44m
  • Mark Register (56yo)

    Senior Vice President of Business Development & Channels

    • Tenure: 3.8yrs
  • Trâm Phi (48yo)

    Senior VP

    • Tenure: 0.5yrs
  • Vivian MacDonald (52yo)

    Chief Accounting Officer

    • Tenure: 0yrs
  • Scott Olrich (44yo)

    Chief Operating Officer

    • Tenure: 0.8yrs
    • Compensation: US$14.69m
  • Grant Peterson

    Chief Technology Officer

    • Tenure: 0yrs
  • Scott Barmmer

    Senior Vice President of International Sales

    • Tenure: 0.9yrs
  • Anne Leschin

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Adrian Wainwright

    Head of Communications

    • Tenure: 0yrs

Board Members

  • Enrique Salem (53yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$200.00k
  • Lou Lavigne (70yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$200.00k
  • Maggie Wilderotter (64yo)

    Independent Chairman

    • Tenure: 0.9yrs
    • Compensation: US$606.04k
  • Dan Springer (56yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$13.44m
  • Matt Schiltz

    Member of Advisory Board

    • Tenure: 3.8yrs
  • Pete Solvik (58yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$200.00k
  • Dave Barram (75yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • John Hinshaw (49yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$200.00k
  • Blake Irving (59yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$399.96k
  • Alex Bard

    Member of Advisory Board

    • Tenure: 3.8yrs

Company Information

DocuSign, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DocuSign, Inc.
  • Ticker: DS3
  • Exchange: DB
  • Founded: 2003
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$12.915b
  • Listing Market Cap: US$11.611b
  • Shares outstanding: 179.46m
  • Website: https://www.docusign.com

Number of Employees


Location

  • DocuSign, Inc.
  • 221 Main Street
  • Suite 1550
  • San Francisco
  • California
  • 94105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DOCUNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2018
DS3DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2018
0XNHLSE (London Stock Exchange)YesCommon StockGBUSDApr 2018
DOCU *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2018

Biography

DocuSign, Inc. provides cloud based software in the United States. The company offers e-signature solution that enables businesses to digitally prepare, execute, and act on agreements. The company sells it ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 23:06
End of Day Share Price2019/12/13 00:00
Earnings2019/10/31
Annual Earnings2019/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.