Docusign (DOCU) stock: a great growth trajectory

9:08 am ET, 05 Sep 2018

DocuSign (DOCU) shares are trading at 64.68, down -0.26%. Now that we're in the earnings season, here are a few things you should know about the company.

DocuSign provides electronic signature technology and digital transaction management for facilitating electronic exchange of contracts and signed documents. The company had a dream stock exchange listing in April this year and has continued to perform higher.

DocuSign's revenue has been growing and losses are narrowing down. For the fiscal year which ended in January revenue rose 39% to $485 million and loss was reduced to $52 million.  The company has demonstrated financial discipline by remaining cash flow positive, allowing IPO proceeds to be used mainly for increasing revenue.

In the first quarter earnings beat estimates, revenue rose 37% year-on-year to $155.8 million. The company has to face competition from Adobe sign and Vasco Data Security International.

DocuSign is expected to earn non-GAAP earnings per share of $0.01 and revenue of $160.07 million in the upcoming quarter. The next quarter results will be released after market close on September 05, 2018.

What is the sentiment towards the DOCU stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is neutral. 

DocuSign (DOCU) forward P/E ratio is 321.39, and it’s high compared to its industry peers’ P/E ratios.

DocuSign (DOCU) short share of float is 6.12%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

DocuSign (DOCU) average analyst price target ($50.14) is -23.18% below its current price ($65.27).

For the latest price and information on DocuSign, please visit Finstead and search for "DOCU price" or "DOCU news".

DocuSign (DOCU) Stock Guide

Updated at: 10:36 pm ET, 02 Sep 2020

Before we start: if you're looking for DOCU stock price, you can quickly find it out by visiting Finny and typing "DOCU quote". If you're looking for a quick scoop on DOCU stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "DOCU". You'll get all this info in one place. Or you can just type "DOCU news" to get the latest stock news.

Looking to buy or sell DocuSign (DOCU)? Interested in getting the full scoop on DOCU, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this DOCU stock guide, we'll address key questions about DOCU, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are DOCU earnings?
2. When is DOCU earnings date?
3. What is DOCU stock forecast (i.e., prediction)?
4. DOCU buy or sell? What is DOCU Finny Score?
5. What are the reasons to buy DOCU? Why should I buy DOCU stock?
6. What are the reasons to sell DOCU? Why should I sell DOCU stock?
7. What are DOCU key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are DOCU earnings?

DOCU trailing 12-month earnings per share (EPS) is -$1.17.

2. When is DOCU earnings date?

DOCU earnings date is September 03, 2020.

Analyst Predictions

3. What is DOCU stock forecast (i.e., prediction)?

Based on DOCU analyst price targets, DOCU stock forecast is $178.68 (for a year from now). That means the average analyst price target for DOCU stock is $178.68. The prediction is based on 8 analyst estimates.

The low price target for DOCU is $140.00, while the high price target is $240.00.

DOCU analyst rating is Buy.

Analysis

4. DOCU buy or sell? What is DOCU Finny Score?

#{finnyScore:31}Our quantitative analysis shows 4 reasons to buy and 9 reasons to sell DOCU, resulting in Finny Score of 31.

5. What are the reasons to buy DOCU? Why should I buy DOCU stock?

Here are the reasons to buy DOCU stock:

  • DOCU quarterly revenue growth was 38.80%, higher than the industry and sector average revenue growth (1.11% and 0.89%, respectively). See DOCU revenue growth chart.
  • DOCU profitability is improving. The YoY profit margin change was 20.27 percentage points. See DOCU profitability chart.
  • DOCU average analyst rating is Buy. See DOCU analyst rating chart.
  • DOCU cash to debt ratio is 1.13, higher than the average industry (0.16) and sector (0.17) cash to debt ratio. See DOCU cash to debt chart.

6. What are the reasons to sell DOCU? Why should I sell DOCU stock?

Let's look at the reasons to sell DOCU stock (i.e., the bear case):

  • DOCU stock price ($265.16) is close to the 52-week high ($268.80). Perhaps now is a good time to sell? See DOCU price chart.
  • DOCU forward P/E ratio is 320.00, which is high compared to its industry peers’ P/E ratios. See DOCU forward P/E ratio chart.
  • DOCU Price/Book ratio is 94.32, which is high compared to its industry peers’ P/B ratios. See DOCU forward Price/Book ratio chart.
  • DOCU Price/Sales ratio is 46.67, which is high compared to its industry peers’ P/S ratios. See DOCU forward Price/Sales ratio chart.
  • DOCU PEG ratio (P/E adjusted for growth) is 14.37, which is high compared to its industry peers’ PEG ratios. See DOCU PEG chart.
  • DOCU average analyst price target ($178.68) is below its current price ($265.16). See DOCU price target chart.
  • DOCU short share of float is 5.22%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See DOCU short share of float chart.
  • DOCU short interest (days to cover the shorts) ratio is 2.07. The stock garners more short interest than the average industry, sector or S&P 500 stock. See DOCU short interest ratio chart.
  • DOCU Enterprise Value/Revenue multiple is 38.63, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See DOCU Enterprise Value/Revenue chart.

Key Stats

7. What are DOCU key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for DOCU:

Metrics DOCU
Price $193.46
Average Price Target / Upside $245.89 / 27.10%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Software - Application
Sector Technology
Number of Employees 2,255
Market Cap $49.33B
Forward P/E Ratio 320.00
Price/Book Ratio 46.67
Revenue (TTM) $1.06B
YoY Quarterly Revenue Growth 38.80%
Profit Margin -19.91%

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