📊 AI Stock Rating — Summary

DocuSign reported quarterly revenue of $801 million with an EPS of $0.31, suggesting a net margin of approximately 7.9%. The company generated a solid free cash flow of $218 million, reflecting a robust cash conversion from operations. Year-over-year revenue growth remains a focal point with continued expansion in the digital agreements sector as a core driver. Profitability is evidenced by positive net income and continued strong operating cash flow, indicating potential for further reinvestment or stabilization of financial health. The balance sheet remains strong with net cash of over $473 million, highlighting financial resilience. Shareholder returns observed no dividends but featured notable stock repurchases totaling $202 million, suggesting confidence in share valuation. Analyst targets range up to $95, indicating potential upside based on valuation context at the time.

AI Score Breakdown

Revenue Growth — Score: 8/10

DocuSign's revenue increased to $801 million, driven by strong market demand for digital agreement solutions. Growth remains consistent and aligns with industry trends.

Profitability — Score: 7/10

With an EPS of $0.31 and net margin of approximately 7.9%, profitability is on a stable trajectory. Operating efficiency supports sustained income generation.

Cash Flow Quality — Score: 8/10

Generating $218 million in free cash flow and executing significant stock repurchases, DOCU displays robust liquidity and financial flexibility.

Leverage & Balance Sheet — Score: 9/10

Strong balance sheet with $473 million in net cash, indicating very low leverage and high financial resilience. Total equity exceeds total liabilities.

Shareholder Returns — Score: 7/10

With active buybacks and no dividends, returns are driven by strategic capital allocation. Analyst high price targets suggest further potential appreciation.

Analyst Sentiment & Valuation — Score: 8/10

Analyst targets up to $95 suggest optimism. The stock is perceived to have further upside potential relative to current trading levels and market sentiment.

⚠ AI-generated — informational only, not financial advice.