NasdaqGS:DOCU

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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: DOCU is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: DOCU's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-2.9%

DOCU

0.1%

US Software

0.7%

US Market


1 Year Return

211.0%

DOCU

45.9%

US Software

22.2%

US Market

Return vs Industry: DOCU exceeded the US Software industry which returned 46.9% over the past year.

Return vs Market: DOCU exceeded the US Market which returned 22.7% over the past year.


Shareholder returns

DOCUIndustryMarket
7 Day-2.9%0.1%0.7%
30 Day8.0%10.0%11.8%
90 Day-10.0%2.4%8.6%
1 Year211.0%211.0%46.8%45.9%25.0%22.2%
3 Yearn/a144.4%136.6%49.4%39.5%
5 Yearn/a235.2%216.9%100.2%78.1%

Long-Term 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

Valuation

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

80.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DOCU ($217.7) is trading above our estimate of fair value ($74.41)

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 (80.3x) compared to the US Software industry average (8x).


Next Steps

Future Growth

How is DocuSign forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

60.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: DOCU's revenue (21.7% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: DOCU's revenue (21.7% 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 high in 3 years time (34.2%)


Next Steps

Past Performance

How has DocuSign performed over the past 5 years?

-10.6%

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, and losses have increased over the past 5 years at a rate of 10.6% 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 (8%).


Return on Equity

High ROE: DOCU has a negative Return on Equity (-41.12%), as it is currently unprofitable.


Next Steps

Financial Health

How is DocuSign's financial position?


Financial Position Analysis

Short Term Liabilities: DOCU's short term assets ($968.0M) exceed its short term liabilities ($854.0M).

Long Term Liabilities: DOCU's short term assets ($968.0M) exceed its long term liabilities ($697.4M).


Debt to Equity History and Analysis

Debt Level: DOCU's debt to equity ratio (95.5%) is considered high.

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% per year.


Next Steps

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?

1.5yrs

Average management tenure


CEO

Dan Springer (57 yo)

3.92yrs

Tenure

US$8,733,680

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 served as an Independent Opera...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD8.73M) is about average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Springer
President3.92yrsUS$8.73m0.86%
$ 346.2m
Scott Olrich
Chief Operating Officer1.83yrsUS$3.62m0.14%
$ 55.5m
Tram Phi
Senior VP1.5yrsUS$3.40m0.0048%
$ 2.0m
Michael Sheridan
President of International0.25yrUS$3.69m0.34%
$ 138.0m
Loren Alhadeff
Chief Revenue Officerno dataUS$4.47m0.041%
$ 16.5m
Cynthia Gaylor
Chief Financial Officer0.25yrUS$399.98k0.0032%
$ 1.3m
Vivian Chow
Senior VP & Chief Accounting Officerno datano datano data
Annie Leschin
Vice President of Investor Relationsno datano datano data
Adrian Wainwright
Head of Communicationsno datano datano data
Robert Giglio
Chief Marketing Officer0.75yrno datano data
Mark Register
Senior Vice President of Business Development & Channels4.83yrsno datano data
Robin Joy
Senior VP and GM of SMB Marketing & Digital Salesno datano datano data

1.5yrs

Average Tenure

51yo

Average Age

Experienced Management: DOCU's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel Springer
President3.92yrsUS$8.73m0.86%
$ 346.2m
Bruce Chizen
Member of Advisory Board4.83yrsno datano data
Enrique Salem
Independent Director7.33yrsUS$200.00k0.082%
$ 32.9m
Mary Wilderotter
Independent Chairman1.92yrsUS$606.04k0.012%
$ 4.7m
Matthew Schiltz
Member of Advisory Board4.83yrsno datano data
Peter Solvik
Lead Independent Directorno dataUS$200.00k0.16%
$ 66.3m
David Barram
Member of Advisory Boardno datano datano data
Blake Irving
Independent Director2.33yrsUS$399.96k0.0044%
$ 1.8m
Alex Bard
Member of Advisory Board4.83yrsno datano data
Guy Chiarello
Member of Advisory Board4.83yrsno datano data
John Batelle
Member of Advisory Board4.83yrsno datano data
Teressa Briggs
Director0.58yrno datano data

4.8yrs

Average Tenure

60yo

Average Age

Experienced Board: DOCU's board of directors are considered experienced (4.8 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 5.2%.


Top Shareholders

Company Information

DocuSign, Inc.'s company bio, 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$40.310b
  • Shares outstanding: 185.16m
  • 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
D1OC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 20 REPR 1 COM NPVBRBRLOct 2020

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:24
End of Day Share Price2020/12/02 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.