Last Updated: 16 Sep 2024
Executive Summary
DocuSign Inc. (DOCU) is a leading provider of cloud-based software for electronic signatures and document management. The company has a strong financial position with high revenue growth and profitability. However, it faces increasing competition in the market. The stock price is currently trading at $56.63, which is below the analyst target price of $63.33.
Company Overview
DocuSign was founded in 2003 and is headquartered in San Francisco, California. The company provides cloud-based software that allows users to electronically sign and manage documents. DocuSign's software is used by businesses of all sizes, including Fortune 500 companies.
Fundamental Analysis
DocuSign has a strong financial position. The company's revenue has grown rapidly in recent years, from $452 million in 2017 to $2.86 billion in 2023. The company's net income has also grown rapidly, from $42 million in 2017 to $191 million in 2023.
DocuSign's profitability is also strong. The company's gross margin is 69.4%, and its operating margin is 7.9%. The company's return on assets is 2.4%, and its return on equity is 70.3%.
Technical Analysis
The stock price of DocuSign has been volatile in recent months. The stock price reached a high of $64.76 in November 2023, but has since fallen to $56.63. The stock price is currently trading below its 50-day moving average of $55.48 and its 200-day moving average of $55.88.
Short Term Outlook
The short-term outlook for DocuSign is mixed. The company's financial position is strong, but the stock price is trading below its analyst target price. The stock price is also trading below its moving averages. This suggests that the stock price may continue to decline in the short term.
Long Term Outlook
The long-term outlook for DocuSign is positive. The company's software is in high demand, and the company is well-positioned to continue to grow its market share. The company's financial position is also strong, which gives it the resources to invest in new products and services.
Analyst Recommendations
The majority of analysts have a "Hold" rating on DocuSign. However, two analysts have a "Strong Buy" rating and three analysts have a "Buy" rating. The average analyst target price is $63.33.
