DocuSign Inc. Common Stock (DOCU)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

DocuSign is an e-signature and agreement-management business. In fiscal Q2 2027, the quarter ended 2026-07-31, it filed revenue of $875.7M and net income of $77.7M, or diluted EPS of $0.40. In fiscal Q2 2026, the quarter ended 2025-07-31, revenue was $800.6M and net income was $63.0M, so comparing those filed quarters shows roughly 9.4% revenue growth and 23% net income growth. That is respectable, but not hypergrowth. The business has switching costs because agreements live inside workflows, but I want evidence that AI-powered agreement management widens the moat rather than invites competition. Financial health is decent: D/E 0.11, ROE 17.80%, ROCE 6.35%, trailing free cash flow $1.2B, FCF yield 8.9%, Piotroski 6/9, and Altman Z-Score 2.90. Yet annual profits are uneven: fiscal year 2024 ended 2024-01-31 had net income $74.0M and EPS $0.36; fiscal year 2025 ended 2025-01-31 had net income $1.1B and EPS $5.08; fiscal year 2026 ended 2026-01-31 had net income $309.1M and EPS $1.48. Valuation is the rub. FairStock calculations at the 2026-10-13 close of $72.31 put the P/E at 44.09, P/B at 7.92, EV/EBITDA at 23.31, PEG at 1.88, and Graham Number at $18.35, implying a -294.06% margin of safety. The FairStock Score is 51/100, and the Lynch category is TURNAROUND because it returned to profit after a loss within the last three years. The price appears to require faster growth or a lower valuation to offer a margin of safety.

In plain English: DocuSign helps people and businesses sign and manage agreements online, and it is adding software that uses artificial intelligence to handle more of the contract process. It is profitable now, generates solid cash, and carries little debt, but sales growth is modest and profits have been uneven from year to year. At the recent price of $72.31, the stock looks expensive compared with the company's reported profits and assets, even though its cash flow gives some support.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-07-31) · fiscal Q1 2027 10-Q (period ended 2026-04-30) · fiscal Q3 2026 10-Q (period ended 2025-10-31) · fiscal Q2 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-01-31) · FY2025 10-K (period ended 2025-01-31) · FY2024 10-K (period ended 2024-01-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer