Is DocuSign Stock Undervalued?
Digital signature software business DocuSign (NASDAQ:DOCU) has been struggling over…
| Period Ending | 2020-12-31 | 2021-12-31 | 2022-12-31 | 2023-12-31 | 2024-12-31 | |
|---|---|---|---|---|---|---|
| Revenue | $9.7B | $11.9B | $13.5B | $12.1B | $21.1B | |
| Revenue Growth (YoY) | -3.98% | 22.85% | 12.74% | -10.21% | 74.56% | |
| Cost of Revenues | $6.4B | $8.3B | $9.2B | $9B | $16.9B | |
| Gross Profit | $3.3B | $3.7B | $4.3B | $3.1B | $4.2B | |
| Gross Profit Margin | 33.69% | 30.59% | 31.71% | 25.25% | 19.87% | |
| R&D Expenses | $9.1M | $8.3M | $8.4M | $10.8M | -- | |
| Selling, General & Admin | $2.2B | $2.4B | $2.5B | $2.6B | $2.8B | |
| Other Inc / (Exp) | -$45.5M | -$39.6M | -$164M | -$173M | -$444M | |
| Operating Expenses | $2.2B | $2.4B | $2.5B | $1.6B | $2.7B | |
| Operating Income | $1.1B | $1.3B | $1.8B | $1.5B | $1.5B | |
| Net Interest Expenses | $145.9M | $143M | $157.6M | $170M | $525M | |
| EBT. Incl. Unusual Items | $851.6M | $1.1B | $1.4B | $1.1B | $560M | |
| Earnings of Discontinued Ops. | -- | -- | -- | -- | -- | |
| Income Tax Expense | $229.1M | $276.6M | $365.7M | $312M | $241M | |
| Net Income to Company | $852.7M | $1.1B | $1.4B | $826M | $319M | |
| Minority Interest in Earnings | $2.3M | -- | $1.1M | $1M | -- | |
| Net Income to Common Excl Extra Items | $623.6M | $802.6M | $993.2M | $826M | $319M | |
| Basic EPS (Cont. Ops) | $2.60 | $3.12 | $3.85 | $3.20 | $0.83 | |
| Diluted EPS (Cont. Ops) | $2.58 | $3.09 | $3.80 | $3.17 | $0.82 | |
| Weighted Average Basic Share | $238.8M | $257.1M | $258M | $258M | $386M | |
| Weighted Average Diluted Share | $241M | $260M | $261M | $260M | $389M | |
| EBITDA | $1.7B | $1.9B | $2.4B | $2.1B | $2.9B | |
| EBIT | $1.1B | $1.3B | $1.8B | $1.5B | $1.5B | |
| Revenue (Reported) | $9.7B | $11.9B | $13.5B | $12.1B | $21.1B | |
| Operating Income (Reported) | $1.1B | $1.3B | $1.8B | $1.5B | $1.5B | |
| Operating Income (Adjusted) | $1.1B | $1.3B | $1.8B | $1.5B | $1.5B | |
| Period Ending | 2021-09-30 | 2022-09-30 | 2023-09-30 | 2024-09-30 | 2025-09-30 | |
|---|---|---|---|---|---|---|
| Revenue | -- | -- | $2.9B | $7.7B | $8B | |
| Revenue Growth (YoY) | -- | -- | 28.13% | 207.88% | 4.33% | |
| Cost of Revenues | -- | -- | $2.2B | $6.3B | $6.4B | |
| Gross Profit | -- | -- | $742M | $1.4B | $1.6B | |
| Gross Profit Margin | -- | -- | 25.46% | 17.6% | 19.61% | |
| R&D Expenses | -- | -- | -- | -- | -- | |
| Selling, General & Admin | -- | -- | $371M | $1B | $963M | |
| Other Inc / (Exp) | -- | -- | -$30M | -$272M | -- | |
| Operating Expenses | -- | -- | $371M | $1B | $963M | |
| Operating Income | -- | -- | $371M | $322M | $606M | |
| Net Interest Expenses | -- | -- | $39M | $209M | $204M | |
| EBT. Incl. Unusual Items | -- | -- | $302M | -$117M | $336M | |
| Earnings of Discontinued Ops. | -- | -- | -- | -- | -- | |
| Income Tax Expense | -- | -- | $73M | $33M | $91M | |
| Net Income to Company | -- | -- | -- | -$146.8M | $258.9M | |
| Minority Interest in Earnings | -- | -- | -- | -- | -$1M | |
| Net Income to Common Excl Extra Items | -- | -- | $229M | -$150M | $245M | |
| Basic EPS (Cont. Ops) | -- | -- | $0.89 | -$0.30 | $0.47 | |
| Diluted EPS (Cont. Ops) | -- | -- | $0.88 | -$0.30 | $0.47 | |
| Weighted Average Basic Share | -- | -- | $258M | $508M | $522M | |
| Weighted Average Diluted Share | -- | -- | $259M | $508M | $526M | |
| EBITDA | -- | -- | $443.3M | $886M | $1.3B | |
| EBIT | -- | -- | $348M | $322M | $606M | |
| Revenue (Reported) | -- | -- | $2.9B | $7.7B | $8B | |
| Operating Income (Reported) | -- | -- | $371M | $322M | $606M | |
| Operating Income (Adjusted) | -- | -- | $348M | $322M | $606M | |
| Period Ending | 2021-09-30 | 2022-09-30 | 2023-09-30 | 2024-09-30 | 2025-09-30 | |
|---|---|---|---|---|---|---|
| Revenue | -- | -- | $10.6B | $16.2B | $31.1B | |
| Revenue Growth (YoY) | -- | -- | -- | -- | -- | |
| Cost of Revenues | -- | -- | $7.5B | $12.6B | $25B | |
| Gross Profit | -- | -- | $3.1B | $3.6B | $6.1B | |
| Gross Profit Margin | -- | -- | -- | -- | -- | |
| R&D Expenses | -- | -- | -- | -- | -- | |
| Selling, General & Admin | -- | -- | $1.9B | $1B | $3.9B | |
| Other Inc / (Exp) | -- | -- | -$72.1M | -$502M | -- | |
| Operating Expenses | -- | -- | $1.9B | $2.4B | $3.9B | |
| Operating Income | -- | -- | $1.1B | $1.2B | $2.2B | |
| Net Interest Expenses | -- | -- | $205.5M | $318.8M | $811M | |
| EBT. Incl. Unusual Items | -- | -- | $860.9M | $526.6M | $1B | |
| Earnings of Discontinued Ops. | -- | -- | -- | -- | -- | |
| Income Tax Expense | -- | -- | $213.3M | $212.3M | $260M | |
| Net Income to Company | -- | -- | -- | $365.5M | $768.4M | |
| Minority Interest in Earnings | -- | -- | -$8.3M | $2.4M | -$1M | |
| Net Income to Common Excl Extra Items | -- | -- | $639.3M | $314.3M | $747M | |
| Basic EPS (Cont. Ops) | -- | -- | $2.60 | $1.54 | $1.44 | |
| Diluted EPS (Cont. Ops) | -- | -- | $2.58 | $1.53 | $1.42 | |
| Weighted Average Basic Share | ||||||
| Weighted Average Diluted Share | ||||||
| EBITDA | -- | -- | $1.6B | $2.2B | $4.7B | |
| EBIT | -- | -- | $1.1B | $1.2B | $2.2B | |
| Revenue (Reported) | -- | -- | $10.6B | $16.2B | $31.1B | |
| Operating Income (Reported) | -- | -- | $1.1B | $1.2B | $2.2B | |
| Operating Income (Adjusted) | -- | -- | $1.1B | $1.2B | $2.2B | |
| Period Ending | 2021-09-30 | 2022-09-30 | 2023-09-30 | 2024-09-30 | 2025-09-30 | |
|---|---|---|---|---|---|---|
| Revenue | -- | -- | $2.9B | $13.6B | $23.6B | |
| Revenue Growth (YoY) | -- | -- | -- | -- | -- | |
| Cost of Revenues | -- | -- | $2.2B | $10.8B | $18.9B | |
| Gross Profit | -- | -- | $742M | $2.8B | $4.7B | |
| Gross Profit Margin | -- | -- | -- | -- | -- | |
| R&D Expenses | -- | -- | -- | -- | -- | |
| Selling, General & Admin | -- | -- | $371M | $1B | $2.9B | |
| Other Inc / (Exp) | -- | -- | -$30M | -$394M | -$344M | |
| Operating Expenses | -- | -- | $371M | $1.9B | $2.9B | |
| Operating Income | -- | -- | $371M | $873M | $1.8B | |
| Net Interest Expenses | -- | -- | $39M | $267M | $607M | |
| EBT. Incl. Unusual Items | -- | -- | $302M | $337M | $784M | |
| Earnings of Discontinued Ops. | -- | -- | -- | -- | -- | |
| Income Tax Expense | -- | -- | $73M | $164M | $183M | |
| Net Income to Company | -- | -- | -- | $174.9M | $628.7M | |
| Minority Interest in Earnings | -- | -- | -- | -- | -$1M | |
| Net Income to Common Excl Extra Items | -- | -- | $229M | $173M | $601M | |
| Basic EPS (Cont. Ops) | -- | -- | $0.89 | $0.95 | $1.15 | |
| Diluted EPS (Cont. Ops) | -- | -- | $0.88 | $0.94 | $1.14 | |
| Weighted Average Basic Share | -- | -- | $258M | $1B | $1.6B | |
| Weighted Average Diluted Share | -- | -- | $259M | $1B | $1.6B | |
| EBITDA | -- | -- | $443.3M | $1.7B | $3.6B | |
| EBIT | -- | -- | $348M | $873M | $1.8B | |
| Revenue (Reported) | -- | -- | $2.9B | $13.6B | $23.6B | |
| Operating Income (Reported) | -- | -- | $371M | $873M | $1.8B | |
| Operating Income (Adjusted) | -- | -- | $348M | $873M | $1.8B | |
| Period Ending | 2020-12-31 | 2021-12-31 | 2022-12-31 | 2023-12-31 | 2024-12-31 | |
|---|---|---|---|---|---|---|
| Cash and Equivalents | $1.1B | $988.2M | $841M | $1B | $855M | |
| Short Term Investments | -- | -- | -- | -- | -- | |
| Accounts Receivable, Net | $1.6B | $2B | $2B | $1.8B | $4.1B | |
| Inventory | $959.3M | $1.2B | $1.3B | $1.2B | $3.6B | |
| Prepaid Expenses | $97.9M | $114.9M | $132.3M | $133.7M | -- | |
| Other Current Assets | -- | -- | -- | $561M | $1.5B | |
| Total Current Assets | $4B | $4.6B | $4.8B | $4.6B | $10.1B | |
| Property Plant And Equipment | $5.2B | $5.4B | $5.4B | $6.2B | $23.7B | |
| Long-Term Investments | $62.4M | $59.1M | $71.5M | -- | -- | |
| Goodwill | $2.9B | $2.8B | $2.6B | $2.8B | $6.8B | |
| Other Intangibles | $255.8M | $238.9M | $232.7M | $218M | $1.1B | |
| Other Long-Term Assets | $131.6M | $94M | $107.2M | $601M | $2.5B | |
| Total Assets | $12.9B | $13.6B | $13.6B | $14.1B | $43.8B | |
| Accounts Payable | $1.2B | $1.6B | $1.5B | $1.7B | $3.3B | |
| Accrued Expenses | $690M | $839M | $848.3M | $278M | $715M | |
| Current Portion Of Long-Term Debt | $189.4M | $186.8M | $193M | $193.4M | -- | |
| Current Portion Of Capital Lease Obligations | -- | -- | -- | -- | -- | |
| Other Current Liabilities | $16M | $15.9M | $60.1M | $484M | $1.4B | |
| Total Current Liabilities | $2.7B | $3.2B | $3.2B | $3B | $7.3B | |
| Long-Term Debt | $3.8B | $4.1B | $3.8B | $3.9B | $13.3B | |
| Capital Leases | -- | -- | -- | -- | -- | |
| Total Liabilities | $8.2B | $8.6B | $8.2B | $7.9B | $26.4B | |
| Common Stock | -- | -- | -- | -- | $1M | |
| Other Common Equity Adj | $714.6M | $653.3M | $612.3M | -$847M | -$1.4B | |
| Common Equity | $4.6B | $5B | $5.4B | $6.2B | $17.4B | |
| Total Preferred Equity | -- | -- | -- | -- | -- | |
| Minority Interest, Total | $15.9M | $14.8M | $13.9M | $16M | $27M | |
| Total Equity | $4.6B | $5B | $5.4B | $6.2B | $17.4B | |
| Total Liabilities and Equity | $12.8B | $13.6B | $13.6B | $14.1B | $43.8B | |
| Cash and Short Terms | $1.1B | $988.2M | $841M | $1B | $855M | |
| Total Debt | $4B | $4.3B | $4B | $4B | $14.3B | |
| Period Ending | 2021-09-30 | 2022-09-30 | 2023-09-30 | 2024-09-30 | 2025-09-30 | |
|---|---|---|---|---|---|---|
| Cash and Equivalents | -- | -- | -- | $951M | $851M | |
| Short Term Investments | -- | -- | -- | -- | -- | |
| Accounts Receivable, Net | -- | -- | -- | $4.6B | $4.7B | |
| Inventory | -- | -- | -- | $3.6B | $3.8B | |
| Prepaid Expenses | -- | -- | -- | -- | -- | |
| Other Current Assets | -- | -- | -- | $1.4B | -- | |
| Total Current Assets | -- | -- | -- | $10.5B | $10.9B | |
| Property Plant And Equipment | -- | -- | -- | $24.2B | $23.1B | |
| Long-Term Investments | -- | -- | -- | -- | -- | |
| Goodwill | -- | -- | -- | $7.2B | -- | |
| Other Intangibles | -- | -- | -- | $1.1B | -- | |
| Other Long-Term Assets | -- | -- | -- | $2.4B | -- | |
| Total Assets | -- | -- | -- | $45B | $45.6B | |
| Accounts Payable | -- | -- | -- | $3.4B | $3.3B | |
| Accrued Expenses | -- | -- | -- | $813M | -- | |
| Current Portion Of Long-Term Debt | -- | -- | -- | -- | -- | |
| Current Portion Of Capital Lease Obligations | -- | -- | -- | -- | -- | |
| Other Current Liabilities | -- | -- | -- | $1.3B | -- | |
| Total Current Liabilities | -- | -- | -- | $7.1B | $7.3B | |
| Long-Term Debt | -- | -- | -- | $13.9B | $13.3B | |
| Capital Leases | -- | -- | -- | -- | -- | |
| Total Liabilities | -- | -- | -- | $27B | $27.1B | |
| Common Stock | -- | -- | -- | $1M | $1M | |
| Other Common Equity Adj | -- | -- | -- | $738M | -- | |
| Common Equity | -- | -- | -- | -- | -- | |
| Total Preferred Equity | -- | -- | -- | -- | -- | |
| Minority Interest, Total | -- | -- | -- | $27M | $26M | |
| Total Equity | -- | -- | -- | $18B | $18.5B | |
| Total Liabilities and Equity | -- | -- | -- | $45B | $45.6B | |
| Cash and Short Terms | -- | -- | -- | $951M | $851M | |
| Total Debt | -- | -- | -- | $14.6B | $14.1B | |
| Period Ending | 2020-12-31 | 2021-12-31 | 2022-12-31 | 2023-12-31 | 2024-12-31 | |
|---|---|---|---|---|---|---|
| Net Income to Stockholders | $852.7M | $1.1B | $1.4B | $826M | $319M | |
| Depreciation & Amoritzation | $635M | $653.6M | $662.1M | $580M | $1.5B | |
| Stock-Based Compensation | $39.9M | $81.6M | $68.3M | $66M | $206M | |
| Change in Accounts Receivable | $25.1M | -$581.5M | -$250.1M | $245M | -$144M | |
| Change in Inventories | $16M | -$290.8M | -$196.5M | $220M | $62M | |
| Cash From Operations | $1.4B | $1.2B | $1.5B | $1.6B | $1.5B | |
| Capital Expenditures | $585.9M | $726.9M | $935.4M | $929M | $1.5B | |
| Cash Acquisitions | $28.5M | $529.5M | $110.4M | $29M | $719M | |
| Cash From Investing | -$603M | -$1.2B | -$1B | -$931M | -$2.1B | |
| Dividends Paid (Ex Special Dividend) | $296.4M | $357M | $348.9M | $391M | $650M | |
| Special Dividend Paid | ||||||
| Long-Term Debt Issued | -- | $1.1B | $52M | $88M | $5.7B | |
| Long-Term Debt Repaid | -$516.6M | -$776.7M | -$59M | -$143M | -$4.3B | |
| Repurchase of Common Stock | $18.2M | $26M | $72.5M | $30M | $27M | |
| Other Financing Activities | -$19.7M | -$3.4M | -$1M | -$3M | -$83M | |
| Cash From Financing | -$46.7M | -$16.5M | -$520.2M | -$479M | $607M | |
| Beginning Cash (CF) | $94.2M | $129.6M | $841M | $1B | $855M | |
| Foreign Exchange Rate Adjustment | -- | -- | -- | -- | -- | |
| Additions / Reductions | $798M | -$53.2M | -$72.5M | $159M | -$145M | |
| Ending Cash (CF) | $913.9M | $62.3M | $706.5M | $1.2B | $589M | |
| Levered Free Cash Flow | $840.2M | $443.2M | $601.2M | $630M | $17M | |
| Period Ending | 2021-09-30 | 2022-09-30 | 2023-09-30 | 2024-09-30 | 2025-09-30 | |
|---|---|---|---|---|---|---|
| Net Income to Stockholders | -- | -- | -- | -$146.8M | $258.9M | |
| Depreciation & Amoritzation | -- | -- | -- | $574.6M | $698.3M | |
| Stock-Based Compensation | -- | -- | -- | $124.8M | $37.2M | |
| Change in Accounts Receivable | -- | -- | -- | -$191.5M | $190.3M | |
| Change in Inventories | -- | -- | -- | $141.2M | -$4.6M | |
| Cash From Operations | -- | -- | -- | $329.1M | $1.2B | |
| Capital Expenditures | -- | -- | -- | $523.2M | $645.5M | |
| Cash Acquisitions | -- | -- | -- | $694.8M | $37.1K | |
| Cash From Investing | -- | -- | -- | -$1.2B | -$601.5M | |
| Dividends Paid (Ex Special Dividend) | -- | -- | -- | $164.7M | $238.7M | |
| Special Dividend Paid | -- | -- | -- | -- | -- | |
| Long-Term Debt Issued | -- | -- | -- | $332M | -- | |
| Long-Term Debt Repaid | -- | -- | -- | -$1.6B | -- | |
| Repurchase of Common Stock | -- | -- | -- | $399.4K | -- | |
| Other Financing Activities | -- | -- | -- | -$36M | -- | |
| Cash From Financing | -- | -- | -- | -$1.5B | -$493.1M | |
| Beginning Cash (CF) | -- | -- | -- | $951M | $851M | |
| Foreign Exchange Rate Adjustment | -- | -- | -- | $3.6M | -$22.6M | |
| Additions / Reductions | -- | -- | -- | -$2.4B | $75.8M | |
| Ending Cash (CF) | -- | -- | -- | -$1.4B | $904.2M | |
| Levered Free Cash Flow | -- | -- | -- | -$194.1M | $547.5M | |
| Period Ending | 2021-09-30 | 2022-09-30 | 2023-09-30 | 2024-09-30 | 2025-09-30 | |
|---|---|---|---|---|---|---|
| Net Income to Stockholders | -- | -- | -- | $365.5M | $768.4M | |
| Depreciation & Amoritzation | -- | -- | -- | $1B | $2.5B | |
| Stock-Based Compensation | -- | -- | $23.3M | $168.6M | $166.7M | |
| Change in Accounts Receivable | -- | -- | -- | -$358.8M | $24.1M | |
| Change in Inventories | -- | -- | -- | $57.6M | -$121.9M | |
| Cash From Operations | -- | -- | -- | $1B | $3.1B | |
| Capital Expenditures | -- | -- | $414.8M | $1.1B | $2.2B | |
| Cash Acquisitions | -- | -- | -$50M | -- | -$9.5M | |
| Cash From Investing | -- | -- | -- | -$1.8B | -$2.1B | |
| Dividends Paid (Ex Special Dividend) | -- | -- | -$229.1M | -- | $848.7M | |
| Special Dividend Paid | ||||||
| Long-Term Debt Issued | -- | -- | -- | -- | -- | |
| Long-Term Debt Repaid | -- | -- | -- | -- | -- | |
| Repurchase of Common Stock | -- | -- | -- | $26.1M | -$665.9K | |
| Other Financing Activities | -- | -- | -- | -- | -- | |
| Cash From Financing | -- | -- | -- | $701.7M | -$984.8M | |
| Beginning Cash (CF) | -- | -- | -- | -- | -- | |
| Foreign Exchange Rate Adjustment | -- | -- | -- | -- | -- | |
| Additions / Reductions | -- | -- | -- | -$118.6M | -$97.6M | |
| Ending Cash (CF) | -- | -- | -- | -- | -- | |
| Levered Free Cash Flow | -- | -- | -- | -$69.5M | $828.9M | |
| Period Ending | 2021-09-30 | 2022-09-30 | 2023-09-30 | 2024-09-30 | 2025-09-30 | |
|---|---|---|---|---|---|---|
| Net Income to Stockholders | -- | -- | -- | $174.9M | $628.7M | |
| Depreciation & Amoritzation | -- | -- | -- | $881.4M | $2B | |
| Stock-Based Compensation | -- | -- | -- | $155.7M | $119.2M | |
| Change in Accounts Receivable | -- | -- | -- | -$426.6M | -$260.5M | |
| Change in Inventories | -- | -- | -- | $121.3M | -$61.7M | |
| Cash From Operations | -- | -- | -- | $709.6M | $2.3B | |
| Capital Expenditures | -- | -- | -- | $906.7M | $1.7B | |
| Cash Acquisitions | -- | -- | -- | $694.8M | $5.2M | |
| Cash From Investing | -- | -- | -- | -$1.6B | -$1.6B | |
| Dividends Paid (Ex Special Dividend) | -- | -- | -- | $164.7M | $706.1M | |
| Special Dividend Paid | -- | -- | -- | -- | -- | |
| Long-Term Debt Issued | -- | -- | -- | $3.1B | $498M | |
| Long-Term Debt Repaid | -- | -- | -- | -$1.7B | -$162M | |
| Repurchase of Common Stock | -- | -- | -- | $27.3M | -- | |
| Other Financing Activities | -- | -- | -- | -$66M | -$72M | |
| Cash From Financing | -- | -- | -- | $878.4M | -$705M | |
| Beginning Cash (CF) | -- | -- | -- | $5.1B | $2.4B | |
| Foreign Exchange Rate Adjustment | -- | -- | -- | -$25.3M | $38.7M | |
| Additions / Reductions | -- | -- | -- | -$49.5M | -$4.2M | |
| Ending Cash (CF) | -- | -- | -- | $5B | $2.5B | |
| Levered Free Cash Flow | -- | -- | -- | -$197.1M | $615.1M | |
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P/E Ratio: 64x
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P/E Ratio: 37x
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P/E Ratio: 39x
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