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$DOCU Is DocuSign a Zombie Company?
I struggle to see how DocuSign lasts much longer. One of my 2022 predictions was that it would be acquired this year. I truly think by mid-2023 the company gets scooped up. What do you guys think?
The Motley Fool
Time May Be Up for This Pandemic Stock | The Motley Fool
DocuSign was a stock market darling during the pandemic, but competition is heating up.
Zombie companies are indebted businesses that, although generating cash, after covering running costs, and fixed costs (wages, rates, rent) only have enough funds to service the interest on their loans, but not the debt itself.
By that definition $DOCU isn’t one. It’s debt interest payments are 6 mil. It had 510 mil in operating cash flow TTM. 70 mil in cap ex. A billlion in cash and equivalents vs 720 mil in debt. So clearly they have enough free cash flow to service their debt and if they wanted they could pay off all their debt with cash on hands.
Digital signatures aren’t going away. We aren’t going back to traveling to a lawyer to sign more things in person in the future.
Also margins for $DOCU have been trending up over the last 4 years. 
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