The market is worried that the major boost from the shift to work-from-home is over, and Docu. Sign’s growth will slow down materially.
Is DocuSign stock over or undervalued?
Analysts expect that Docu. Sign will report earnings of $2.15 per share in the current fiscal year, so the stock is trading at 34 forward P/E. The company’s valuation has dramatically decreased in recent months as Docu. Sign stock declined from the highs near $315 that were reached back in September 2021 to the $73 level.
The next thing we asked ourselves was what are DocuSign’s risks?
One way to think about this is, while docu Sign has made great strides in past years, the company poses several inherent risks to investors. At the outset, the company has not generated a positive GAAP net income despite providing us with positive adjusted (Non-GAAP) earnings.
A frequent question we ran across in our research was “Is DocuSign a buy on Baystreet?”.
, ca docu Sign has received a consensus rating of Hold. The company’s average rating score is 2.47, and is based on 9 buy ratings, 7 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $248.56, Docu. Sign has a forecasted upside of 95.7% from its current price of $126.99.
Is DocuSign’s growth slowing?
Springer also noted that although Docu. Sign’s growth was slowing, the long-term trend toward digitalization remained intact. “As we head into fiscal 2023, digital transformation and the need to agree from anywhere remains a high priority for organizations across the globe,” Springer said.
One of the next things we wondered was will DocuSign’s revenue grow 20% from 2021 to 2030?
, if docu Sign can maintain just 15% of the market in 2030, the company would generate an annual revenue of $9.3 billion, translating to an average annualized growth of 20% from 2021. We are still in the early innings of what is a massive secular growth trend, and Docu. Sign is well-positioned to lead the way.
How did DocuSign perform in the fiscal 4th quarter?
Despite the stock’s sharp pullback on Friday, the company’s fiscal fourth-quarter results were actually quite impressive., docu Sign’s revenue rose 35% year over year during the period, hitting approximately $581 million. This was ahead of analysts’ average forecast for revenue of $561 million.
Yet another question we ran across in our research was “How did DocuSign’s earnings beat Wall Street estimates?”.
, yet docu Sign’s adjusted earnings per share increased 30% to $0.48, which was slightly above Wall Street’s estimates. Additionally, its operating and free cash flow jumped 41% and 60%, respectively, to $87.8 million and $70.3 million.
How has DocuSign’s financial performance performed during the pandemic?
Pandemic-driven demand led to strong financial performance in recent years for the e-signature juggernaut. Over the past three years, Docu. Sign enjoyed a revenue CAGR of 41%. In its most recent quarter, the company’s top-line and non-GAAP (generally accepted accounting principles) earnings per share grew 42% and 164% up to $545. 5 million and $0.