DocuSign (DOCU) AI Stock Analysis

• Market Cap: $15.57B
• Dividend Yield: N/A
• Average Volume (3M): 3.24M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.32
• Revenue Growth: 7.85%
• EPS Growth: 935.80%
• Country: US
• Employees: 6,838
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 0.90
• Shares Outstanding: 202,062,770
• 10 Day Avg. Volume: 6,617,420
• 30 Day Avg. Volume: 3,237,949
• PEG Ratio: 1.06
• Price to Book (P/B): 25.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 317.82
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 5.95
• Enterprise Value/Ebitda: 10.24
• 1Y Price Target: $88.93
• Price Target Upside: 17.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 76 Outperform
• Price Target: $86.00 ▲(13.14%Upside)

DocuSign's overall stock score is driven by strong financial performance and strategic corporate events that bolster its financial flexibility. While technical analysis presents mixed signals, the company’s valuation is reasonable, and recent earnings calls indicate a positive outlook despite some challenges.

Positive Factors

Business Strategy

Go-to-market changes are serving their intended purpose with a reduction in early renewals that were flat or included partial churn, which is positive for the long-term health of the business.

Market Position

Docusign is seen as a top mid-cap value play based on its valuation at a 25% discount to peers.

Product Expansion

Docusign's product story is broadening with the IAM suite and there is no change to the leading core signature business, which shows high single-digit growth and near 30% operating margin.

Negative Factors

Billings Issues

The impact was greater than expected, with less early renewals than anticipated, driving the billings shortfall in Q1.

Customer Dynamics

DOCU pressure in AH a result of Q1 billings miss, FY26 billings cut, flat QoQ NDR & lower QoQ >$300K customers at conflict with the narrative.

Financial Guidance

Constant-currency FY26 billings guidance was reduced from 8% to 5.8% YoY, or 220 bps, due to embedding broader macro prudence and the early renewal dynamic.

DocuSign Business Overview & Revenue Model

Company Description

DocuSign, Inc. is a leading provider of electronic signature technology and digital transaction management services. Founded in 2003 and headquartered in San Francisco, California, the company operates primarily within the technology and software industry. DocuSign's core product offering includes the DocuSign Agreement Cloud, a suite of applications and integrations for automating and connecting the entire agreement process, enabling users to prepare, sign, act on, and manage agreements electronically, securely, and efficiently. The company's services cater to a wide range of sectors, including financial services, healthcare, real estate, and government.

How the Company Makes Money

DocuSign generates revenue primarily through a subscription-based model, where customers pay for access to its suite of digital transaction management and electronic signature services. Key revenue streams include subscription fees from customers who use the DocuSign Agreement Cloud, which offers various pricing tiers based on the number of users, features, and level of service. The company also earns money through professional services, which include implementation, training, and consulting services tailored to specific customer needs. Additionally, strategic partnerships and integrations with other technology platforms, such as Salesforce, Microsoft, and Google, enhance DocuSign's product offerings and expand its market reach, contributing to its revenue growth. DocuSign's ability to provide a secure, reliable, and easy-to-use solution for digital agreements is a significant factor in its financial success.

DocuSign Financial Statement Overview

Summary

DocuSign exhibits robust financial health with significant revenue growth, improving profitability, and effective cash flow management. The balance sheet is stable with low leverage, supporting its growth trajectory. Despite past losses, the turnaround in profitability and cash flow indicates a positive outlook.

Income Statement

DocuSign has shown impressive growth in its revenue, with a notable increase from $1.45 billion in 2021 to $3.03 billion in TTM (Trailing-Twelve-Months) of 2025. The gross profit margin remains strong at around 79%, indicating efficient cost management. Net profit margin improved significantly, reaching 36.5% in TTM 2025 from negative values in previous years, showcasing increased profitability. The company also improved its EBIT and EBITDA margins to 7.8% and 13.2% respectively, reflecting better operational efficiency.

Balance Sheet

The balance sheet indicates a healthy equity position with a debt-to-equity ratio of 0.07 in TTM 2025, signifying low leverage. Return on equity (ROE) has surged to 54.9% in TTM 2025, up from previous negative values, illustrating strong profitability relative to shareholder equity. The equity ratio stands at 51.1%, reflecting a balanced structure between equity and total assets, enhancing stability.

Cash Flow

DocuSign demonstrates strong cash flow management with a free cash flow of $916 million in TTM 2025. The free cash flow growth rate has been positive, and the operating cash flow to net income ratio is healthy, indicating efficient conversion of income into cash. The consistent positive free cash flow supports the company's operational and strategic initiatives.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.03B	2.98B	2.76B	2.52B	2.11B	1.45B
	Gross Profit
2.40B	2.36B	2.19B	1.98B	1.64B	1.09B
	EBIT
237.56M	199.93M	31.63M	-55.16M	-60.47M	-173.85M
	EBITDA
400.29M	355.75M	195.59M	2.76M	21.44M	-127.60M
	Net Income Common Stockholders
1.11B	1.07B	73.98M	-97.45M	-69.98M	-243.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
948.69M	963.55M	1.05B	1.03B	802.82M	773.50M
	Total Assets
3.95B	4.01B	2.97B	3.01B	2.54B	2.34B
	Total Debt
132.94M	124.43M	143.05M	888.29M	882.23M	915.75M
	Net Debt
-524.46M	-524.20M	-654.01M	166.40M	373.17M	349.70M
	Total Liabilities
1.93B	2.01B	1.84B	2.40B	2.27B	2.01B
	Stockholders Equity
2.01B	2.00B	1.13B	617.29M	275.50M	325.74M
Cash Flow		Free Cash Flow
916.03M	920.28M	887.13M	429.11M	445.07M	214.56M
	Operating Cash Flow
1.01B	1.02B	979.53M	506.76M	506.47M	296.95M
	Investing Cash Flow
-277.02M	-312.88M	44.61M	-191.20M	-162.91M	81.23M
	Financing Cash Flow
-892.43M	-838.79M	-946.04M	-98.26M	-394.62M	-58.98M

DocuSign Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 76.01 is below the 20-day moving average (MA) of 85.88, below the 50-day MA of 82.07, and below the 200-day MA of 80.02, indicating a bearish trend. The MACD of -1.63 indicates Positive momentum. The RSI at 37.57 is Neutral, neither overbought nor oversold. The STOCH value of 7.97 is Positive, 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
BSY	81 Outperform	$14.64B	61.37	25.20%	0.58%	10.71%	-27.64%
ZM	80 Outperform	$24.03B	23.47	12.19%	―	2.98%	24.11%
MNDY	78 Outperform	$15.64B	305.41	5.39%	―	32.25%	156.94%
DOCU	76 Outperform	$15.57B	14.41	70.20%	―	7.85%	935.80%
U	73 Outperform	$10.07B	―	-14.15%	―	-16.74%	49.75%
GRAB	66 Neutral	$19.07B	844.64	0.38%	―	17.24%	―
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%

DocuSign Corporate Events

DocuSign Stockholders Approve Key Proposals at Annual Meeting

On May 29, 2025, DocuSign, Inc. held its 2025 Annual Meeting of Stockholders, where approximately 87% of the total outstanding shares were represented. During the meeting, stockholders approved the election of three directors for a three-year term, ratified the appointment of PricewaterhouseCoopers LLP as the independent accounting firm for the fiscal year ending January 31, 2026, and approved the compensation of the company’s named executive officers for the fiscal year ended January 31, 2025.

The most recent analyst rating on (DOCU) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on DocuSign stock, see the DOCU Stock Forecast page.

DocuSign Secures $750 Million Credit Facility Agreement

On May 21, 2025, DocuSign, Inc. entered into a credit agreement with several lenders, including Bank of America and PNC Bank, for a revolving credit facility of $750 million, with the possibility of an additional $250 million. This agreement, which allows for borrowing and repayment until 2030, aims to enhance DocuSign’s financial flexibility and support its operational needs. The credit facility includes various financial covenants and conditions, such as maintaining certain leverage and interest coverage ratios, and is secured by a first priority security interest in the company’s assets. This move is expected to strengthen DocuSign’s financial position and provide strategic support for its growth initiatives.

The most recent analyst rating on (DOCU) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on DocuSign stock, see the DOCU Stock Forecast page.

DocuSign Board Member Daniel Springer Resigns

On April 24, 2025, Daniel Springer resigned from DocuSign‘s Board of Directors, effective immediately. His departure is not due to any disagreements with the company’s operations, policies, or practices, suggesting a smooth transition and stability within the company’s governance.