DocuSign (DOCU) AI Stock Analysis

• Market Cap: $9.75B
• Dividend Yield: N/A
• Average Volume (3M): 5.29M
• Price to Earnings (P/E): 44.3
• Beta (1Y): 1.14
• Revenue Growth: 8.45%
• EPS Growth: -69.85%
• Country: US
• Employees: 6,838
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.01
• Shares Outstanding: 200,272,740
• 10 Day Avg. Volume: 6,413,233
• 30 Day Avg. Volume: 5,289,670
• PEG Ratio: 0.01
• Price to Book (P/B): 9.87
• Price to Sales (P/S): 6.64
• P/FCF Ratio: 21.48
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.94
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: 16.26
• 1Y Price Target: $62.60
• Price Target Upside: 28.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 4.12
• Revenue Forecast (FY): $3.42B

• Rating: 68 Neutral
• Price Target: $53.00 ▲(8.85% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is primarily supported by solid financial performance (strong margins, cash generation, and low leverage) and a constructive earnings call (higher profitability, strong free cash flow, and growing IAM adoption). These positives are tempered by weaker longer-term technical trends and a relatively high P/E with no dividend yield provided.

Positive Factors

Strong IAM adoption and product-led expansion

Rapid adoption of the Intelligent Agreement Management (IAM) platform — scaling from ~10k to 25k+ paying customers — signals a durable, higher-value expansion vector beyond core eSignature. This strengthens cross-sell, increases average contract value, and supports sustainably higher net retention and recurring revenue mix.

High gross margins and strong cash conversion

A ~79% gross margin and robust cash conversion indicate a scalable SaaS model with durable unit economics. High margins support reinvestment in product and sales while converting earnings into cash efficiently, enabling buybacks, R&D, and sustained operating flexibility over multiple quarters.

Low leverage and solid balance sheet resilience

Very low leverage and a strong equity base provide financial flexibility to fund product development, M&A, or buybacks without stressing liquidity. A healthy ROE around 14% reflects effective capital use, reducing refinancing risk and supporting strategic moves over a multi-quarter horizon.

Negative Factors

Decelerating revenue growth / maturing business

The marked slowdown in top-line growth to low-single digits suggests the core eSignature market is maturing and that incremental growth increasingly depends on IAM expansion and international penetration. Slower revenue growth reduces operating leverage and extends timelines for material scale effects.

Cloud migration transition costs pressure margins

Ongoing cloud migration costs compress gross margin and may persist during multi-quarter transitions. Lower gross margins reduce the cushion for SG&A and R&D, constraining margin expansion even as operating efficiency improves, and can delay conversion of revenue growth into durable profit gains.

Volatile historical EPS growth

Sharp negative EPS growth historically indicates earnings volatility and periods of material margin pressure or investments that depressed profitability. This volatility can limit predictability of earnings-driven reinvestment and make multi-quarter planning and performance consistency more challenging.

DocuSign Business Overview & Revenue Model

Company Description

DocuSign, Inc. provides electronic signature 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. The company provides Guided Forms, which enable complex forms to be filled via an interactive and step-by-step process; Click that supports no-signature-required agreements for standard terms and consents; Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Payments that enables customers to collect signatures and payment; Remote Online Notary is a solution using audio-visual and identify verification technologies to enable notarization; and Monitor using advanced analytics to track DocuSign eSignature web, mobile, and API account. It offers industry-specific cloud offerings, including Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally; Rooms for Mortgage, which offers digital workspace to create and close mortgages; FedRAMP, an authorized version of DocuSign eSignature for U.S. federal government agencies; and life sciences modules that support compliance with the electronic signature practices. The company sells its products through direct, partner-assisted, and Web-based sales. It serves enterprise, commercial, and small businesses. The company was incorporated in 2003 and is headquartered in San Francisco, California.

How the Company Makes Money

DocuSign generates revenue primarily through subscription-based licensing of its software solutions. The company offers several pricing tiers for its eSignature and Agreement Cloud products, targeting individual users, small businesses, and large enterprises. Key revenue streams include annual and monthly subscriptions, with additional revenue from professional services and integrations. Partnerships with other technology providers and integrations into popular platforms like Salesforce, Microsoft, and Google Drive enhance its market reach and drive additional sales. Furthermore, the growing demand for digital solutions and remote work has significantly contributed to the company's earnings, as organizations increasingly seek efficient and secure ways to manage their agreements.

DocuSign Financial Statement Overview

Summary

Strong profitability profile with ~79% gross margin and a swing to ~9.6% net margin in TTM, supported by solid cash conversion (FCF to net income ~0.90) and low leverage (debt-to-equity ~0.076). The main constraint is slowing TTM revenue growth (~2.05%), indicating a more mature growth phase.

Income Statement

DocuSign's income statement shows a strong gross profit margin of approximately 79% in TTM, indicating efficient cost management. The net profit margin improved significantly from negative values in previous years to about 9.6% in TTM, reflecting enhanced profitability. Revenue growth has slowed to 2.05% in TTM, down from higher growth rates in earlier periods, suggesting a maturing growth phase. EBIT and EBITDA margins have improved, but remain moderate at 6.96% and 10.79% respectively, indicating room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.076 in TTM, highlighting low leverage and financial stability. Return on equity has improved to 14.06% in TTM, showcasing effective use of equity to generate profits. The equity ratio stands at approximately 49.8%, indicating a strong equity base relative to total assets, which enhances financial resilience.

Cash Flow

Cash flow analysis reveals a healthy operating cash flow to net income ratio of 0.61 in TTM, indicating strong cash generation relative to net income. Free cash flow growth is positive at 5.58% in TTM, although it has decelerated from previous periods. The free cash flow to net income ratio is robust at 0.90, suggesting effective conversion of earnings into cash.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	3.16B	2.98B	2.76B	2.52B	2.11B	1.45B
Gross Profit	2.51B	2.36B	2.19B	1.98B	1.64B	1.09B
EBITDA	571.41M	357.30M	195.59M	2.76M	21.44M	-127.60M
Net Income	302.27M	1.07B	73.98M	-97.45M	-69.98M	-243.27M
Balance Sheet
Total Assets	3.98B	4.01B	2.97B	3.01B	2.54B	2.34B
Cash, Cash Equivalents and Short-Term Investments	856.87M	963.55M	1.05B	1.03B	802.82M	773.50M
Total Debt	150.37M	124.43M	143.05M	888.29M	882.23M	915.75M
Total Liabilities	2.00B	2.01B	1.84B	2.40B	2.27B	2.01B
Stockholders Equity	1.98B	2.00B	1.13B	617.29M	275.50M	325.74M
Cash Flow
Free Cash Flow	987.93M	920.28M	887.13M	429.11M	445.07M	214.56M
Operating Cash Flow	1.10B	1.02B	979.53M	506.76M	506.47M	296.95M
Investing Cash Flow	-125.42M	-312.88M	44.61M	-191.20M	-162.91M	81.23M
Financing Cash Flow	-998.83M	-838.79M	-946.04M	-98.26M	-394.62M	-58.98M

DocuSign Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOCU, the sentiment is Negative. The current price of 48.69 is above the 20-day moving average (MA) of 45.51, below the 50-day MA of 54.20, and below the 200-day MA of 69.52, indicating a neutral trend. The MACD of -1.48 indicates Negative momentum. The RSI at 51.02 is Neutral, neither overbought nor oversold. The STOCH value of 97.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOCU.

DocuSign Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZM	70 Outperform	$22.71B	10.13	20.57%	―	3.85%	72.42%
DOCU	68 Neutral	$9.75B	44.25	15.14%	―	8.45%	-69.85%
MNDY	67 Neutral	$4.12B	63.93	9.88%	―	28.62%	186.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GTLB	60 Neutral	$4.09B	-103.64	-6.24%	―	27.35%	18.18%
KC	60 Neutral	$4.24B	―	-16.43%	―	24.26%	55.58%
ASAN	55 Neutral	$1.87B	―	-94.12%	―	9.47%	16.97%

DocuSign Corporate Events

DocuSign Appoints Brian Roberts as Independent Board Director

DocuSign announced that its board of directors has appointed Brian Roberts to fill an existing vacancy as an independent Class I director, effective March 5, 2026, with a term running until the company’s 2028 annual meeting of stockholders. The board confirmed his independence under U.S. securities law and Nasdaq listing standards, noted there were no special arrangements or related-party transactions tied to his selection, and stated he will receive standard director compensation and the company’s customary indemnification protections for board members.

The appointment of Roberts strengthens DocuSign’s governance structure by adding an independent voice to the board at a time when oversight of technology and compliance matters remains central to the company’s strategy. While the filing offers no details on his strategic priorities, the move signals continuity in DocuSign’s approach to board independence and shareholder-aligned governance as it heads toward its 2028 director election cycle.

The most recent analyst rating on (DOCU) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on DocuSign stock, see the DOCU Stock Forecast page.