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DOCU

DocuSignNasdaqGS:DOCU Stock Report

Market Cap

US$49.5b

7D

1.5%

1Y

10.4%

Updated

30 Nov, 2021

Data

Company Financials +
DOCU fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance0/6
Financial Health4/6
Dividends0/6

DOCU Stock Overview

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

DocuSign Competitors

Adobe

NasdaqGS:ADBE

US$327.1b

Citrix Systems

NasdaqGS:CTXS

US$10.3b

Dropbox

NasdaqGS:DBX

US$9.5b

Box

NYSE:BOX

US$3.7b

Price History & Performance

Summary of all time highs, changes and price drops for DocuSign
Historical stock prices
Current Share PriceUS$251.50
52 Week HighUS$314.76
52 Week LowUS$179.49
Beta0.90
1 Month Change-9.63%
3 Month Change-15.10%
1 Year Change10.37%
3 Year Change491.49%
5 Year Changen/a
Change since IPO533.02%

Recent News & Updates

Nov 25

DocuSign: Buy The Drop

DocuSign’s e-Signature product suite is essential for companies that have a growing remote workforce. DocuSign posted a revenue growth rate of around 50% last quarter. The number of DocuSign customers surged above 1M in Q2’22. DocuSign is set to become a $6B revenue and a $2B free cash flow business by FY 2026.

Nov 05
DocuSign, Inc. (NASDAQ:DOCU) is a Ways off From Profitability, but already has Positive Cash Flows

DocuSign, Inc. (NASDAQ:DOCU) is a Ways off From Profitability, but already has Positive Cash Flows

When looking at DocuSign, Inc. (NASDAQ:DOCU), investors want to know what are the next major milestones for the company. For new companies, becoming self-sufficient signals a large reduction of bankruptcy risk, as well as that the company is creating a valuable service.

Oct 27

Beware Of DocuSign At Market Tops

Shares of DocuSign have risen ~25% this year, adding to already-generous gains from 2020. Recently, the stock has seemingly capped out in the ~$250 range, a reflection of an overfull valuation. DocuSign's revenue growth has started to decelerate below 50% y/y, and for next year, consensus is expecting growth to slow further to ~30% y/y. DocuSign's >20x forward revenue multiple makes a continued rally quite challenging.

Shareholder Returns

DOCUUS SoftwareUS Market
7D1.5%-0.4%-0.9%
1Y10.4%36.8%23.3%

Return vs Industry: DOCU underperformed the US Software industry which returned 33.7% over the past year.

Return vs Market: DOCU underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is DOCU's price volatile compared to industry and market?
DOCU volatility
DOCU Average Weekly Movement5.5%
Software Industry Average Movement7.4%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: DOCU is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DOCU's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20035,630Dan Springerhttps://www.DocuSign.com

DocuSign, Inc. provides cloud based software in the United States and internationally. The company provides e-signature solution that enables businesses to digitally prepare, sign, act on, and manage agreements. It also offers CLM, which automates workflows across the entire agreement process; Insights that use artificial intelligence (AI) to search and analyze agreements by legal concepts and clauses; Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce; Negotiate for Salesforce that supports for approvals, document comparisons, and version control; Analyzer, which helps customers understand what they’re signing before they sign it; and CLM+ that provide AI-driven contract lifecycle management.

DocuSign Fundamentals Summary

How do DocuSign's earnings and revenue compare to its market cap?
DOCU fundamental statistics
Market CapUS$49.47b
Earnings (TTM)-US$164.76m
Revenue (TTM)US$1.79b

27.6x

P/S Ratio

-300.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DOCU income statement (TTM)
RevenueUS$1.79b
Cost of RevenueUS$410.41m
Gross ProfitUS$1.38b
ExpensesUS$1.55b
Earnings-US$164.76m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

Dec 02, 2021

Earnings per share (EPS)-0.84
Gross Margin77.13%
Net Profit Margin-9.18%
Debt/Equity Ratio345.6%

How did DOCU perform over the long term?

See historical performance and comparison

Valuation

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

233.51x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DOCU ($251.5) is trading above our estimate of fair value ($140.1)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DOCU is overvalued based on its PB Ratio (233.5x) compared to the US Software industry average (6.4x).


Future Growth

How is DocuSign forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

102.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DOCU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: DOCU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DOCU's is expected to become profitable in the next 3 years.

Revenue vs Market: DOCU's revenue (26% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: DOCU's revenue (26% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DOCU's Return on Equity is forecast to be very high in 3 years time (68.7%).


Past Performance

How has DocuSign performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DOCU is currently unprofitable.

Growing Profit Margin: DOCU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DOCU is unprofitable, but has reduced losses over the past 5 years at a rate of 1.1% per year.

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

Earnings vs Industry: DOCU is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.5%).


Return on Equity

High ROE: DOCU has a negative Return on Equity (-77.76%), as it is currently unprofitable.


Financial Health

How is DocuSign's financial position?


Financial Position Analysis

Short Term Liabilities: DOCU's short term assets ($1.2B) do not cover its short term liabilities ($1.2B).

Long Term Liabilities: DOCU's short term assets ($1.2B) exceed its long term liabilities ($934.2M).


Debt to Equity History and Analysis

Debt Level: DOCU has more cash than its total debt.

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


Balance Sheet


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 DOCU has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DOCU is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 60.4% per year.


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if DOCU'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 DOCU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Dan Springer (58 yo)

4.83yrs

Tenure

US$19,799,168

Compensation

Mr. Daniel D. Springer, also known as Dan, serves as an Independent Director of UiPath Inc. since March 2021. Mr. Springer has been Chief Executive Officer, President and Member of the Board of Directors a...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD19.80M) is above average for companies of similar size in the US market ($USD11.11M).

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


Leadership Team

Experienced Management: DOCU's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: DOCU's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DOCU insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: DocuSign, Inc.
  • Ticker: DOCU
  • Exchange: NasdaqGS
  • Founded: 2003
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$49.475b
  • Shares outstanding: 196.72m
  • Website: https://www.DocuSign.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 00:22
End of Day Share Price2021/11/29 00:00
Earnings2021/07/31
Annual Earnings2021/01/31


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.