Aug 22 2021
While DocuSign (NASDAQ: DOCU) shareholders are in the dark over 3 years, those who bought a week ago are not so lucky
We think it’s fair to say that the ability to find fantastic multi-year winners is what drives many investors. But when you hold the right stock for the right time, the rewards can be really huge. Take, for example, the DocuSign, Inc. (NASDAQ: DOCU), which has climbed 336% in three years. It’s also good to see the stock price rise 48% in the last quarter.
Although DocuSign lost US $ 1.9 billion of its market cap this week, let’s take a look at its long-term fundamental trends and see if they have produced any returns.
See our latest review for DocuSign
DocuSign is not profitable right now, so most analysts would look to revenue growth to get a sense of how fast the underlying business is growing. When a business is not making a profit, we generally expect good revenue growth. Some companies are ready to postpone profitability to increase their revenue faster, but in this case, good revenue growth is expected.
Over the past three years, DocuSign has grown its revenue by 35% per year. That’s way above most nonprofit businesses. And it’s not just incomes that are taking off. The share price is up 63% per year during this time. Despite the good run, top players like DocuSign have been known to keep winning for decades. In fact, it might be time to put it on your watchlist, if you’re not already familiar with the title.
You can see how income and income have changed over time in the image below (click on the graph to see the exact values).
DocuSign is a well-known stock, with plenty of analyst coverage, suggesting some visibility into future growth. Considering we have a good number of analyst forecasts, it might be worth checking this out. free graph showing consensus estimates.
A different perspective
We are pleased to announce that DocuSign has rewarded shareholders with a total shareholder return of 36% over the past year. This is below the 63% it has achieved for shareholders each year over three years. I find it very interesting to look at the long-term share price as an indicator of company performance. But to really get an overview, we have to take other information into account as well. Consider risks, for example. Every business has them, and we’ve spotted 3 warning signs for DocuSign you should know.
If you are like me then you not want to miss it free list of growing companies that insiders buy.
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on the US stock exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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