NASDAQ · Technology

DocuSign, Inc.

DOCU · Software - Application

$43.47

▲ 0.89 (2.09%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

B⤢

Gross Profit Margin 79.4%

Operating Margin 13.4%

Net Income Margin 9.4%

Fin. Health

D⤢

Years to Pay Off Debt 2.3 yrs

Working Capital vs Long-Term Debt -$800M

Working Capital -$633M

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 4.56x

Cash Flow

C⤢

Free Cash Flow $289M

CapEx % of Net Income 41.2%

Owner Earnings $143M

Profitability

Gross Profit Margin 79.4%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 13.4%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 9.4%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 2.3 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$800M

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$633M

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $289M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 41.2%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $143M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About DocuSign, Inc.

DocuSign, Inc. provides electronic signature solution in the United States and internationally. The company offers AI-powered intelligent agreement management (IAM) platform to optimize the gain intelligence and automation across the entire agreement lifecycle; and provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; and Document Generation streamlines the process of generating new, custom agreements. It also provides Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Monitor that uses advanced analytics; Notary which enables notaries public to conduct remote online notarization transactions; and Web Forms. In addition, the company offers Real Estate for eSignature that provides a way for brokers and agents to manage the entire real estate transaction digitally. eSignature and CLM are Federal Risk and Authorization Management Program (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 and partner-assisted sales, and digital self-service purchasing. DocuSign, Inc. was incorporated in 2003 and is headquartered in San Francisco, California.

Market Data

Market Cap $8.3B

Enterprise Value $7.9B

P/E (TTM) 28.23

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 79.4%

Operating Margin 13.4%

Net Margin 9.4%

Company Info

Sector Technology

Industry Software - Application

Employees 7044

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering DocuSign, Inc. at $43.47.

The business passes only 0 of 7 of Graham's defensive criteria — well below his required standard.

At $43.47, the stock trades at a 369% premium to its Graham Number of $9.26. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q2 2026	Q4 2025	Q4 2024
Gross Profit %	79.4%▲	79.2%•	N/A
Operating Margin %	13.4%▲	10.4%•	N/A
Net Income %	9.4%▼	10.2%•	N/A
Diluted EPS	0.40→	0.40•	N/A

Balance Sheet Highlights

Metric	Q2 2026	Q4 2025
Total Assets	$4.0B	$4.0B
Total Debt	$183M▲	$150M
Working Capital	-$633M▼	-$477M
Years to Pay Debt	2.34	1.80

Cash Flow Highlights

Metric	Q2 2026	Q4 2025	Q4 2024
Free Cash Flow	$289M▲	$263M•	N/A
Owner Earnings	$143M	$141M	N/A
CapEx % of Net Income	41.2%	32.7%	N/A

Income Statement

	2026	2025
Tax Rate For Calcs	0	0
Normalized EBITDA	150,515	126,582
Net Income From Continuing Operation Net Minority Interest	78,197	83,725
Reconciled Depreciation	32,208	30,399
Reconciled Cost Of Revenue	171,270	170,546
EBITDA	150,515	126,582
EBIT	118,307	96,183
Net Interest Income	6,447	10,174
Interest Expense	551	654
Interest Income	6,998	10,828
Normalized Income	78,197	83,725
Net Income From Continuing And Discontinued Operation	78,197	83,725
Total Expenses	718,926	732,995
Total Operating Income As Reported	111,309	85,355
Diluted Average Shares	196,480	208,069
Basic Average Shares	195,489	201,954
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	78,197	83,725
Net Income Common Stockholders	78,197	83,725
Net Income	78,197	83,725
Net Income Including Noncontrolling Interests	78,197	83,725
Net Income Continuous Operations	78,197	83,725
Tax Provision	39,559	11,804
Pretax Income	117,756	95,529
Net Non Operating Interest Income Expense	6,447	10,174
Interest Expense Non Operating	551	654
Interest Income Non Operating	6,998	10,828
Operating Income	111,309	85,355
Operating Expense	547,656	562,449
Research And Development	159,586	167,626
Selling General And Administration	388,070	394,823
Selling And Marketing Expense	296,175	296,516
General And Administrative Expense	91,895	98,307
Other Gand A	91,895	98,307
Gross Profit	658,965	647,804
Cost Of Revenue	171,270	170,546
Total Revenue	830,235	818,350
Operating Revenue	830,235	818,350

Balance Sheet

	2026	2025
Treasury Shares Number		37
Ordinary Shares Number	193,057	200,297
Share Issued	193,057	200,334
Total Debt	183,333	150,373
Tangible Book Value	1,303,941	1,463,458
Invested Capital	1,819,748	1,981,521
Working Capital	-632,928	-476,589
Net Tangible Assets	1,303,941	1,463,458
Capital Lease Obligations	183,333	150,373
Common Stock Equity	1,819,748	1,981,521
Total Capitalization	1,819,748	1,981,521
Total Equity Gross Minority Interest	1,819,748	1,981,521
Stockholders Equity	1,819,748	1,981,521
Gains Losses Not Affecting Retained Earnings	-3,960	-12,045
Other Equity Adjustments	-3,960	-12,045
Treasury Stock		3,387
Retained Earnings	-2,096,830	-1,668,720
Additional Paid In Capital	3,920,519	3,665,653
Capital Stock	19	20
Common Stock	19	20
Total Liabilities Net Minority Interest	2,164,257	2,000,518
Total Non Current Liabilities Net Minority Interest	275,713	216,774
Other Non Current Liabilities	54,495	35,717
Non Current Deferred Liabilities	53,940	46,524
Non Current Deferred Revenue	29,735	28,027
Non Current Deferred Taxes Liabilities	24,205	18,497
Long Term Debt And Capital Lease Obligation	167,278	134,533
Long Term Capital Lease Obligation	167,278	134,533
Current Liabilities	1,888,544	1,783,744
Current Deferred Liabilities	1,564,942	1,444,599
Current Deferred Revenue	1,564,942	1,444,599
Current Debt And Capital Lease Obligation	16,055	15,840
Current Capital Lease Obligation	16,055	15,840
Pensionand Other Post Retirement Benefit Plans Current	175,575	180,982
Payables And Accrued Expenses	131,972	142,323
Current Accrued Expenses	108,002	119,841
Payables	23,970	22,482
Accounts Payable	23,970	22,482
Total Assets	3,984,005	3,982,039
Total Non Current Assets	2,728,389	2,674,884
Other Non Current Assets	181,061	170,227
Non Current Deferred Assets	1,273,588	1,301,246
Non Current Deferred Taxes Assets	805,136	838,694
Investments And Advances	209,897	208,529
Investmentin Financial Assets	209,897	208,529
Available For Sale Securities	209,897	208,529
Goodwill And Other Intangible Assets	515,807	518,063
Other Intangible Assets	56,659	60,816
Goodwill	459,148	457,247
Net PPE	548,036	476,819
Accumulated Depreciation	-350,453	-357,843
Gross PPE	898,489	834,662
Leases	66,976	66,114
Construction In Progress	144,144	139,320
Other Properties	160,090	133,183
Machinery Furniture Equipment	527,279	496,045
Current Assets	1,255,616	1,307,155
Other Current Assets	132,729	103,328
Receivables	308,708	363,956
Other Receivables	8,024	8,978
Accounts Receivable	300,684	354,978
Allowance For Doubtful Accounts Receivable	-8,378	-8,697
Gross Accounts Receivable	309,062	363,675
Cash Cash Equivalents And Short Term Investments	814,179	839,871
Other Short Term Investments	266,152	256,580
Cash And Cash Equivalents	548,027	583,291

Cash Flow

	2026	2025	2024
Free Cash Flow	289,435	262,900
Repurchase Of Capital Stock	-317,510	-215,057
Capital Expenditure	-32,253	-27,374
Interest Paid Supplemental Data			0
Income Tax Paid Supplemental Data	2,580	2,966
End Cash Position	565,696	600,273
Beginning Cash Position	618,150	616,286
Effect Of Exchange Rate Changes	-481	1,922
Changes In Cash	-51,973	-17,935
Financing Cash Flow	-334,414	-270,461
Cash Flow From Continuing Financing Activities	-334,414	-270,461
Net Other Financing Charges	-39,756	-74,254
Proceeds From Stock Option Exercised	22,852	18,850
Net Common Stock Issuance	-317,510	-215,057
Common Stock Payments	-317,510	-215,057
Investing Cash Flow	-39,247	-37,748
Cash Flow From Continuing Investing Activities	-39,247	-37,748
Net Investment Purchase And Sale	-6,994	-10,374
Sale Of Investment	93,024	99,486
Purchase Of Investment	-100,018	-109,860
Net PPE Purchase And Sale	-32,253	-27,374
Purchase Of PPE	-32,253	-27,374
Operating Cash Flow	321,688	290,274
Cash Flow From Continuing Operating Activities	321,688	290,274
Change In Working Capital	-37,268	-56,124
Change In Other Working Capital	-131,044	-58,656
Change In Other Current Liabilities	-507	-5,020
Change In Other Current Assets	2,320	1,034
Change In Payables And Accrued Expense	-90,653	2,883
Change In Accrued Expense	-93,875	-9,594
Change In Payable	3,222	12,477
Change In Account Payable	3,222	12,477
Change In Prepaid Assets	-31,832	2,928
Change In Receivables	214,448	707
Changes In Account Receivables	214,448	707
Other Non Cash Items	74,142	73,979
Stock Based Compensation	141,377	160,642
Deferred Tax	33,032	-2,347
Deferred Income Tax	33,032	-2,347
Depreciation Amortization Depletion	32,208	30,399
Depreciation And Amortization	32,208	30,399
Net Income From Continuing Operations	78,197	83,725

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $764M ▲ $830M +8.7%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 79.4% ▲ 79.4% -0.0pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 14.6% ▲ 13.4% -1.2pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 9.4% ▲ 9.4% -0.0pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$830M/qtr (≈$3.3B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.66x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$289M

vs Positive

Operating Cash Flow

$322M

Latest quarter · Buffett's cash reality check

ROIC

4.2%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

4.6x

Net Assets: $1.8B

Asset Context — Software - Application

Software companies store most of their value in code, IP, recurring revenue, and customer relationships — none of which appear on the balance sheet under GAAP. Book value and Net Assets are poor proxies for intrinsic value here. Focus on ROIC, gross margin trajectory, and free cash flow instead.

Peers & Industry

No auto-detected peers for Software - Application. You can manually compare DOCU against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.50%

Low — management has little skin in the game

Return on Equity (ROE)

4.3%

Weak — poor returns on equity

Return on Assets (ROA)

2.0%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$869M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-1.0% YoY

Debt is declining — management is deleveraging

Leadership Team

Allan Thygesen

President, CEO & Director

Age 62

Pay: $2,049,964

2.622% of net income

Robert Chatwani

President & GM of Growth

Age 49

Pay: $1,148,288

1.468% of net income

Paula Hansen

President & Chief Revenue Officer

Age 54

Pay: $1,160,577

1.484% of net income

Blake Jeffrey Grayson

Executive VP & CFO

Age 52

Pay: $1,098,246

1.404% of net income

Anwar Akram

Chief Operating Officer

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	11.29%	21,564,137
Vanguard Portfolio Management LLC	5.91%	11,287,298
Vanguard Capital Management LLC	4.69%	8,955,214
Capital World Investors	3.69%	7,039,805
State Street Corporation	3.58%	6,826,736
Arrowstreet Capital, Limited Partnership	2.77%	5,285,128
AQR Capital Management, LLC	2.54%	4,843,791
Geode Capital Management, LLC	2.18%	4,159,260

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.88

Low volatility — more stable than the market

Short Interest

11.3% of float

Moderate short interest

Debt-to-Equity

0.10x

Conservative balance sheet — low financial risk

Current Ratio

0.67x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $40.16 Current: $43.47 High: $86.65

Currently at 7% of 52-week range

DocuSign, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis