ALRS

Alerus Financial

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Banks - Regional

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

DocuSign operates a software platform that digitizes agreement workflows, allowing enterprises and individuals to prepare, sign, act on, and manage contracts electronically. The company generates revenue primarily through subscription-based access to its cloud applications, creating recurring revenue streams tied to customer retention and workflow integration. Its moat is embedded in switching costs and ecosystem integration—once contracts, templates, and compliance processes are built into its system, migration becomes operationally painful. Over time, this recurring SaaS model converts high gross margins into operating cash flow, provided customer churn remains controlled and platform relevance is maintained.

VALUATION

P/E

37.5

Market Cap ($M USD)

$651

Forward P/E

9.3

PEG

1.5

PRICE TO SALES

3

PRICE TO BOOK

1.2

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

3.30%

Annual Payout

$0.84

Payout Ratio

120.30%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

7.00%

Financial Health & Profitability

Earnings Per Share

$0.69

Next Year EPS Growth Estimate

$2.73

Next Year Revenue Growth Estimate

4.90%

Return on Equity (ROE)

3.10%

Operating Margin

10.30%

Debt-to-Equity

0.7

Piotroski F-Score

3

Altman Z-Score

0.2

Return on Invested Capital (ROIC)

12.90%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 29x earnings with a Forward P/E of 8.5 and a PEG of 0.6, the market is pricing DOCU as a low-growth or potentially declining asset despite what appears to be strong forward earnings compression. That multiple contraction signals either skepticism around the sustainability of its 16.10% operating margin or fear tied to its balance sheet profile. The Altman Z-Score of 2.4 places the company in a grey zone—not distressed, but far from fortress-level safety—while a Current Ratio of 0.7 reinforces liquidity tightness. This is a classic “cheap for a reason” setup: statistically attractive on forward earnings, but balance sheet fragility prevents it from being a clean value play.

AI Exposure / Tech Reliance

As a Software – Application company in the Technology sector, DOCU operates in a category directly exposed to AI-driven workflow automation and digital process optimization. Software platforms that digitize documentation and agreement workflows are structurally aligned with AI-enhanced productivity trends. The question is not relevance, but execution discipline in maintaining margins while adapting to rapid technological shifts.

The Bull Case

A GARP investor would focus immediately on the Forward P/E of 8.5 combined with a PEG of 0.6, which implies growth is being underappreciated relative to price. A 12.60% ROIC exceeding many software peers and a 16.10% operating margin demonstrate that this is not a speculative tech story—it is a profitable operator generating real returns on capital. The Piotroski F-Score of 6 suggests acceptable financial health and operational stability, not deterioration. With a Market Cap of $8,339M and Institutional Ownership at 61.88%, there is meaningful professional sponsorship, indicating this is not an abandoned asset. If earnings estimates hold, the compression from 29x trailing to 8.5x forward earnings makes this look like a mispriced cash-generating software franchise.

The Bear Case

Now the structural risks: a Current Ratio of 0.7 is a red flag, signaling potential short-term liquidity strain. The Altman Z-Score of 2.4 reinforces that the balance sheet is not bulletproof, and while Debt/Equity at 9.30% appears modest, the weak liquidity profile overshadows it. Return on Equity of 7.50% is underwhelming for a software business trading at 4.4x book, suggesting capital efficiency is not elite. The lack of a meaningful dividend (0.1 TTM Yield, no dividend per share) means investors rely entirely on execution and multiple expansion, which may not materialize if growth disappoints. This is a stock priced cheaply on forward metrics because the market does not fully trust the durability of its earnings trajectory.

Market Sentiment & Smart Money

Short Interest %

3.00%

Analyst Consensus

3

Average Analyst Price Target

$26.00

Institutional Ownership %

62.00%

1-Year Beta

0.9

Insider Buying % (6 Mo)

8.20%%

Distance to 52-Week High

96.90%%

Distance to 52-Week Low

161.60%%