Is the business good?
How good a business is DOCU?
DocuSign, Inc. earns 22% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
22%
Return on invested capital · cost of capital 9.0% · 13 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Software - Application median 8.2% · 12 months to Q1 2027
- Cash conversion
- 3.55×
Cash conversion · 0.83× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −7.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | −12% |
| FY2022 | −2.9% |
| FY2023 | −3.5% |
| FY2024 | 1.1% |
| FY2025 | 6.7% |
| FY2026 | 9.3% |
Details›
- Gross margin12 months to Q1 2027
- 79%
- Operating margin12 months to Q1 2027
- 11%
- Net margin12 months to Q1 2027
- 9.6%
- Free cash flow margin
- 34%
- R&D as % of revenue
- 20%
- Revenue, trailing twelve months
- $3.29B
- Free cash flow, trailing twelve months
- $1.12B
- Net income, trailing twelve months
- $315M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 22%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #23 of 90 by Smart Score