Value
7.1/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 4.4 |
| P/S | 8.5 |
| EV/EBITDA | 0.0 |
| Fwd P/E | 9.4 |
| PEG | 9.8 |
| Analyst target | 7.5 |
- ▸Forward P/E: 8.9x
- ▸PEG: 0.53
- ▸Attractively valued
DOCU · Why this verdict
Why DocuSign (DOCU) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score5.3/10
ConfidenceMEDIUM
MacroRISK_OFF
Per-dimension breakdown
Quality
6.7/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 5.5 |
| ROA | 3.7 |
| Gross margin | 10.0 |
| Op margin | 5.4 |
| Net margin | 4.8 |
| Current ratio | 2.7 |
| FCF quality | 10.0 |
| Moat | 7.8 |
| Rule of 40 | 7.8 |
| Piotroski F | 8.9 |
- ▸Excellent cash conversion: 397% FCF/NI
- ▸Wide economic moat
- ▸Compounder quality: strong returns + growth
- ▸Rule of 40: 47 (pass)
Growth
5.1/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 4.7 |
| EPS growth | 5.5 |
Momentum
2.6/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 4.5 |
| MACD | 0.0 |
| OBV | 1.0 |
| MA position | 1.0 |
| Volume | 6.3 |
- ▸Volume distribution (falling OBV)
- ▸Below 200-MA, MA slope -6.2%/30d — confirmed downtrend
Sentiment
5.9/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 4.5 |
| Analyst rating | 5.0 |
| Price target | 8.7 |
- ▸Analyst upside: 32%
Insider
3.9/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 4.5 |
| insider conviction | 2.0 |
| holder change | 5.1 |
- ▸Modest insider selling — $3,125,754 (0.036% of mkt cap)
Peer rank
3.5/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 5.8 |
| quality rank | 5.9 |
| growth rank | 2.4 |
Technical
5.7/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 8.2 |
| support resistance | 9.0 |
| 52w position | 0.0 |
Risk (lower is worse)
4.5/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 4.4 |
| days to cover | 5.2 |
| volatility | 0.0 |
| put call | 3.7 |
| implied vol | 2.2 |
| max pain risk | 3.0 |
| beta | 7.7 |
| debt equity | 9.6 |
- ▸High IV: 67%
- ▸Above max pain $25
Catalyst
7.0/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 6.9 |
| news activity | 8.0 |
- ▸Perfect beat streak: 4Q
How the verdict was assembled
Engine trigger
Multiple concerning factors. Consider reducing position.
Engine technical detail
verdict_path:
L4:PATH_F_SELLPassed (6)
- ASYMMETRY:1.5>=1.5
- INSIDER:OK
- NEWS_BOOST:ANALYST:0.50
- EARNINGS_PROXIMITY:85d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (2)
- MOMENTUM:2.6<4.5
- DEATH_CROSS:HARD_BLOCK
Warning (1)
- 8K_CSUITE_CHANGE:5.02 (officer departure/appointment)
Reward-to-Risk
1.50
Upside
+18.7%
Downside
12.4%
Sizing output
AVOID
SetupUNKNOWN — No clear chart pattern; technical signals are mixed
EdgeNO_EDGE — No clear edge identified
SuitabilityMODERATE — Balanced profile
Investment implication
The F-path SELL output reflects an overall score of 4.5 below the 5.6 soft trigger — multiple weakening dimensions accumulated rather than a single hard-floor breach. The strongest dimension ( Value at 7.1) was not enough to lift the adjusted overall above the threshold. Co-occurring failed gates ( MOMENTUM:2.6<4.5, DEATH_CROSS:HARD_BLOCK) reinforce the read. Current asymmetry R:R is 1.50 — supplementary context, not the trigger for this path.
The strongest dimensions are Value at 7.1, Catalyst at 7.0, and Quality at 6.7; the weakest are Momentum at 2.6, Peer rank at 3.5, and Insider at 3.9. The V9 engine flagged 2 failed gates with 1 warning, producing an asymmetric reward-to-risk of 1.50 and an engine sizing output of AVOID.