DocuSign, Inc. [NASDAQ:DOCU]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For DocuSign, Inc. [DOCU] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in January. On average, stock market experts give DOCU an Outperform rating. Its stock price has been found in the range of 35.06 to 68.35. This is compared to its latest closing price of $55.42.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for DocuSign, Inc. [DOCU] is sitting at 2.00. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Jan-19 DocuSign, Inc. [DOCU] generated $0.2 billion in sales. That’s 3.16% higher than the average estimate of $0.19 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Thu 6 Jun (In 51 Days).
Fundamental Analysis of DocuSign, Inc. [DOCU]
Now let’s turn to look at profitability: with a current Operating Margin for DocuSign, Inc. [DOCU] sitting at -60.56 and its Gross Margin at +71.55, this company’s Net Margin is now -60.90%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is -67.14, and its Return on Invested Capital has reached -40.30%. Its Return on Equity is -103.61, and its Return on Assets is -38.16. These metrics suggest that this DocuSign, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, DocuSign, Inc. [DOCU] has generated a Total Debt to Total Equity ratio of 71.85. Similarly, its Total Debt to Total Capital is 41.81, while its Total Debt to Total Assets stands at 27.33. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 71.85, and its Long-Term Debt to Total Capital is 41.81. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is -22.82. The Enterprise Value to Sales for this firm is now 12.58, and its Total Debt to Enterprise Value stands at 0.07. DocuSign, Inc. [DOCU] has a Price to Book Ratio of 13.63, a Price to Cash Flow Ratio of 87.85.
Shifting the focus to workforce efficiency, DocuSign, Inc. [DOCU] earns $231,879 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.34 and its Total Asset Turnover is 0.63. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.91 and its Current Ratio is 1.91. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
DocuSign, Inc. [DOCU] has 168.32M shares outstanding, amounting to a total market cap of $9.33B. Its stock price has been found in the range of 35.06 to 68.35. At its current price, it has moved by -18.42% from its 52-week high, and it has moved 59.04% from its 52-week low.
This stock’s Beta value is currently , which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 56.65. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is DocuSign, Inc. [DOCU] a Reliable Buy?
Shares of DocuSign, Inc. [DOCU], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.