Latest news with #DocuSign
Yahoo
04-08-2025
- Business
- Yahoo
1 Cash-Producing Stock to Own for Decades and 2 We Ignore
While strong cash flow is a key indicator of stability, it doesn't always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning. Cash flow is valuable, but it's not everything - StockStory helps you identify the companies that truly put it to work. That said, here is one cash-producing company that reinvests wisely to drive long-term success and two that may face some trouble. Two Stocks to Sell: DocuSign (DOCU) Trailing 12-Month Free Cash Flow Margin: 30.2% Founded by Seattle-based entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is the pioneer of e-signature and offers software as a service that allows people and organisations to sign legally binding documents electronically. Why Does DOCU Worry Us? Annual revenue growth of 10.8% over the last three years was below our standards for the software sector Offerings struggled to generate meaningful interest as its average billings growth of 6.4% over the last year did not impress Estimated sales growth of 5.9% for the next 12 months implies demand will slow from its three-year trend At $73.83 per share, DocuSign trades at 4.9x forward price-to-sales. To fully understand why you should be careful with DOCU, check out our full research report (it's free). Collegium Pharmaceutical (COLL) Trailing 12-Month Free Cash Flow Margin: 29.6% Pioneering abuse-deterrent technology in a field plagued by addiction concerns, Collegium Pharmaceutical (NASDAQ:COLL) develops and markets specialty medications for treating moderate to severe pain, including abuse-deterrent opioid formulations. Why Are We Hesitant About COLL? Subscale operations are evident in its revenue base of $664.3 million, meaning it has fewer distribution channels than its larger rivals Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.5 percentage points Diminishing returns on capital suggest its earlier profit pools are drying up Collegium Pharmaceutical's stock price of $30.07 implies a valuation ratio of 4.2x forward P/E. Dive into our free research report to see why there are better opportunities than COLL. One Stock to Buy: Alphabet (GOOGL) Trailing 12-Month Free Cash Flow Margin: 18% Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube. Why Will GOOGL Outperform? Alphabet's dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin. The company's profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube. Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term. Alphabet is trading at $188.40 per share, or 19.7x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it's free. Stocks We Like Even More Donald Trump's April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
30-07-2025
- Business
- Globe and Mail
DocuSign vs. Spotify: Which Digital Pioneer Delivers More Value?
DocuSign DOCU and Spotify SPOT are both digital leaders that operate on scalable, subscription-based business models with large, global user bases. DocuSign revolutionizes the way agreements are prepared, signed and managed electronically, enabling seamless workflows for individuals and enterprises. Spotify, on the other hand, dominates the audio streaming space, offering music and podcasts to millions of users worldwide. Both companies leverage cloud technology and data-driven personalization to enhance user experience and drive engagement. Their platforms are widely adopted across industries and geographies. This positions them as essential tools in the modern digital economy. The Case for DOCU Docusign continues to enhance its Intelligent Agreement Management (IAM) platform, strengthening its integration capabilities with enterprise powerhouses like Microsoft MSFT and Salesforce CRM. These collaborations are not just cosmetic; they are core to the company's mission of optimizing agreement workflows and delivering AI-driven insights that improve the end-user experience. By embedding itself more deeply into tools already familiar to business clients — such as Microsoft 365 and Salesforce's CRM suite — Docusign enables seamless agreement management within platforms that enterprises use daily. This integration simplifies contract processes, accelerates decision-making, and creates a unified ecosystem where legal, sales, and procurement teams can collaborate efficiently. The IAM platform's growing synergy also highlights Docusign's commitment to positioning itself as more than an e-signature solution; it's becoming a comprehensive digital agreement hub. Whether a user is drafting a contract within Microsoft Word or managing client pipelines in Salesforce, Docusign's IAM helps ensure that documents move swiftly through automated, intelligent workflows. These platform partnerships also deepen customer reliance on DOCU's services, anchoring it within critical enterprise infrastructure. As more businesses seek to modernize agreement processes, Docusign's integrations with Microsoft and Salesforce are proving instrumental in extending reach, improving retention and reinforcing its competitive edge in the SaaS landscape. DOCU solidified its leadership in the e-signature market with a strong first-quarter fiscal 2026 performance. It recorded $764 million in total revenues, an 8% year-over-year increase. Impressively, $746 million of that came from subscriptions, highlighting the stability of its SaaS model. Subscription growth, driven in part by Microsoft and Salesforce-aligned services, reflects how enterprises are deepening their usage of Docusign across contract lifecycles. Net revenue retention improved to 101%, suggesting that customers are spending more on the platform. Though billings growth slowed to 4%, it was more indicative of extended renewal cycles than weakening demand. What stands out is Docusign's profitability and capital discipline. The company generated $228 million in free cash flow in the first quarter, translating to a healthy 30% margin. As integrations continue to enhance customer value, the company has also committed to shareholder returns, expanding its buyback authorization. These strategic moves suggest that DOCU is not only focused on growth but also on delivering sustained value. With Microsoft and Salesforce reinforcing its relevance across enterprises, and strong free cash flows backing that momentum, Docusign remains well-positioned to maintain its dominance while evolving into a broader digital agreement ecosystem. The Case for SPOT Spotify continues to enhance its platform with innovative features that deepen user engagement and broaden its global footprint. Since the introduction of its AI DJ in 2023, the company has witnessed a steady increase in monthly active users (MAUs), reflecting the appeal of more personalized listening experiences. MAUs grew by 16.9% in the fourth quarter of 2023 compared to the March quarter, followed by a further 10% rise by the end of 2024. In the first quarter of 2025 alone, Spotify added another 3 million users. This consistent growth highlights the effectiveness of its technology-driven content curation in attracting and retaining listeners. Another new feature, the AI Playlist tool, has gained momentum by allowing premium users to create playlists based on simple prompts. Its rapid adoption led to a significant expansion into more than 40 new markets in April 2025, reinforcing the platform's global appeal. Spotify has also reported a 4% year-over-year increase in average revenue per user, indicating not just rising user numbers but also improved monetization through value-added features. Expanding beyond music and podcasts, Spotify recently partnered with ElevenLabs to accept AI-narrated audiobooks. Authors can now create audio versions of their work in 29 languages and distribute them through Spotify, extending their reach to a broader, multilingual audience. This move not only supports independent creators but also strengthens Spotify's position as a comprehensive audio platform. By introducing smart, user-friendly tools and expanding content formats, Spotify is building a richer ecosystem that caters to a variety of preferences. These advancements, while powered by sophisticated technology, are subtly woven into the user experience, helping the company grow its user base, increase engagement, and maintain leadership in the digital audio streaming space. How Do the Estimates Compare for DOCU & SPOT? The Zacks Consensus Estimate for DOCU's fiscal 2026 sales indicates year-over-year growth of 6%, and EPS indicates a slight year-over-year decline. EPS estimates have been trending upward over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for SPOT's 2025 sales and EPS indicates year-over-year growth of 21% and 51%, respectively. EPS estimates have been trending slightly downward over the past 60 days. Image Source: Zacks Investment Research DOCU Undervalued, SPOT Priced for Growth While DOCU appears attractively valued with a forward 12-month P/E of 21.83X versus its median of 64.82X, SPOT has a higher forward P/E of 54.06X, slightly below its median of 54.07X. Winner: DocuSign While both DocuSign and Spotify are digital leaders, DocuSign stands out with stronger fundamentals and deeper enterprise integration. Its Intelligent Agreement Management (IAM) platform, bolstered by partnerships with Microsoft and Salesforce, positions it as a critical tool in modern business operations. With 98% of revenues from subscriptions and 101% net revenue retention, DocuSign offers predictable growth and customer stickiness. Financially, it delivers robust free cash flow and trades at an attractive valuation. While Spotify shows impressive user growth, DocuSign's profitability, capital discipline, and enterprise relevance make it the more compelling long-term value play. While DOCU carries a Zacks Rank #3 (Hold), SPOT has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. #1 Semiconductor Stock to Buy (Not NVDA) The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow. One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Salesforce Inc. (CRM): Free Stock Analysis Report Spotify Technology (SPOT): Free Stock Analysis Report Docusign Inc. (DOCU): Free Stock Analysis Report
Yahoo
22-07-2025
- Business
- Yahoo
DocuSign's IAM: Automating Agreements, Redefining Enterprise
DocuSign DOCU is redefining agreement management with its Intelligent Agreement Management (IAM) platform, an AI-driven solution that has quickly become the fastest-growing new product in the company's history. Positioned well beyond the scope of traditional e-signature tools, IAM represents a strategic evolution in how businesses manage the lifecycle of agreements. A key strength of the IAM platform lies in its robust integration with enterprise leaders such as Microsoft MSFT and Salesforce PYPL. These partnerships are not merely symbolic; they are deeply embedded within the company's vision of enabling seamless, intelligent workflows across the tools organizations already rely on. Whether a user is drafting a contract within Microsoft Word or managing customer relationships in Salesforce's CRM, IAM ensures documents move efficiently and securely through automated processes. The Microsoft integration enables professionals to initiate, track, and manage agreements directly from Microsoft 365 applications, thereby eliminating workflow disruptions and enhancing operational efficiency. Similarly, the Salesforce integration enables sales, legal and procurement teams to collaborate effortlessly within the CRM environment, improving visibility and reducing turnaround time for agreements. These integrations strengthen customer dependency, effectively anchoring the IAM platform within the core infrastructure of large enterprises. This strategic alignment not only increases the platform's reach but also significantly improves user retention. IAM underscores DocuSign's broader transition into a comprehensive digital agreement platform, designed to support every stage of the contract lifecycle, from creation and negotiation to execution and analysis. With AI-driven insights, the platform enhances decision-making, speeds up workflows and reinforces compliance and accuracy. By embedding itself within widely used enterprise ecosystems, DocuSign is building a level of stickiness that's hard to displace. This strategic positioning makes IAM not just a useful tool but a mission-critical component of digital transformation initiatives. As more organizations embrace automation and intelligent workflows, DocuSign's IAM, driven by advanced integrations and AI, is emerging as a cornerstone of the future-forward enterprise. DOCU's Price Performance, Valuation, Estimates The stock has declined 12% year to date compared with the industry's 16% rally. Image Source: Zacks Investment Research From a valuation standpoint, DOCU trades at a forward price-to-earnings ratio of 21.73, well above the industry's 40.18. It carries a Value Score of D. Image Source: Zacks Investment Research The Zacks Consensus Estimate for DOCU's second-quarter fiscal 2025 earnings has been on the rise over the past 60 days. Image Source: Zacks Investment Research DOCU stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Docusign Inc. (DOCU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-07-2025
- Business
- Yahoo
DocuSign (DOCU) Ascends While Market Falls: Some Facts to Note
DocuSign (DOCU) closed the most recent trading day at $79.37, moving +2.25% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.01%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, added 0.05%. Prior to today's trading, shares of the provider of electronic signature technology had gained 3.15% lagged the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 5.37%. Analysts and investors alike will be keeping a close eye on the performance of DocuSign in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.84, reflecting a 13.4% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $778.96 million, up 5.83% from the prior-year quarter. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.54 per share and a revenue of $3.16 billion, representing changes of -0.28% and +6.05%, respectively, from the prior year. It is also important to note the recent changes to analyst estimates for DocuSign. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.61% increase. Right now, DocuSign possesses a Zacks Rank of #3 (Hold). Digging into valuation, DocuSign currently has a Forward P/E ratio of 21.96. This denotes a discount relative to the industry average Forward P/E of 28.43. We can also see that DOCU currently has a PEG ratio of 9.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 2.14 as of yesterday's close. The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Docusign Inc. (DOCU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
12-07-2025
- Business
- Yahoo
DocuSign (DOCU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
DocuSign (DOCU) closed at $73.55 in the latest trading session, marking a -3.68% move from the prior day. This move lagged the S&P 500's daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.22%. Shares of the provider of electronic signature technology have appreciated by 0.46% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.24%, and the S&P 500's gain of 4.07%. Market participants will be closely following the financial results of DocuSign in its upcoming release. The company is predicted to post an EPS of $0.84, indicating a 13.4% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $778.96 million, indicating a 5.83% growth compared to the corresponding quarter of the prior year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.54 per share and a revenue of $3.16 billion, representing changes of -0.28% and +6.05%, respectively, from the prior year. Investors should also take note of any recent adjustments to analyst estimates for DocuSign. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.61% rise in the Zacks Consensus EPS estimate. Right now, DocuSign possesses a Zacks Rank of #3 (Hold). Looking at valuation, DocuSign is presently trading at a Forward P/E ratio of 21.6. This signifies a discount in comparison to the average Forward P/E of 28.6 for its industry. One should further note that DOCU currently holds a PEG ratio of 9.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.21. The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 67, putting it in the top 28% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Docusign Inc. (DOCU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
