DOLBY LABORATORIES INC-CL A (DLB)
US25659T1079 - Common Stock
We assign a fundamental rating of 6 out of 10 to DLB. DLB was compared to 279 industry peers in the Software industry. DLB has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DLB has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DLB was profitable.
In the past year DLB had a positive cash flow from operations.
Of the past 5 years DLB 4 years were profitable.
DLB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DLB has a better Return On Assets (7.14%) than 81.00% of its industry peers.
DLB has a Return On Equity of 8.73%. This is in the better half of the industry: DLB outperforms 77.42% of its industry peers.
DLB's Return On Invested Capital of 7.82% is amongst the best of the industry. DLB outperforms 82.80% of its industry peers.
DLB had an Average Return On Invested Capital over the past 3 years of 8.72%. This is below the industry average of 11.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 8.73% | ||
| ROIC | 7.82% |
ROA(3y)7.86%
ROA(5y)8.11%
ROE(3y)9.55%
ROE(5y)9.85%
ROIC(3y)8.72%
ROIC(5y)8.55%
1.3 Margins
DLB has a better Profit Margin (16.87%) than 84.59% of its industry peers.
In the last couple of years the Profit Margin of DLB has grown nicely.
The Operating Margin of DLB (19.59%) is better than 88.53% of its industry peers.
In the last couple of years the Operating Margin of DLB has grown nicely.
With an excellent Gross Margin value of 88.72%, DLB belongs to the best of the industry, outperforming 94.62% of the companies in the same industry.
In the last couple of years the Gross Margin of DLB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.59% | ||
| PM (TTM) | 16.87% | ||
| GM | 88.72% |
OM growth 3Y2.15%
OM growth 5Y3.1%
PM growth 3Y-8.13%
PM growth 5Y31.32%
GM growth 3Y0.33%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
DLB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for DLB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 10.98 indicates that DLB is not in any danger for bankruptcy at the moment.
DLB has a better Altman-Z score (10.98) than 82.80% of its industry peers.
There is no outstanding debt for DLB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.98 |
ROIC/WACC0.66
WACC11.86%
2.3 Liquidity
A Current Ratio of 4.14 indicates that DLB has no problem at all paying its short term obligations.
DLB has a Current ratio of 4.14. This is amongst the best in the industry. DLB outperforms 82.08% of its industry peers.
DLB has a Quick Ratio of 4.04. This indicates that DLB is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of DLB (4.04) is better than 82.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.14 | ||
| Quick Ratio | 4.04 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.44% over the past year.
Measured over the past years, DLB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.26% on average per year.
EPS 1Y (TTM)6.44%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%24.62%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.9%
3.2 Future
DLB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.66% yearly.
Based on estimates for the next years, DLB will show a small growth in Revenue. The Revenue will grow by 6.31% on average per year.
EPS Next Y1.27%
EPS Next 2Y6.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.5%
Revenue Next 2Y6.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DLB is valuated rather expensively with a Price/Earnings ratio of 21.57.
DLB's Price/Earnings ratio is rather cheap when compared to the industry. DLB is cheaper than 81.72% of the companies in the same industry.
DLB is valuated rather cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
DLB is valuated rather expensively with a Price/Forward Earnings ratio of 21.30.
DLB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DLB is cheaper than 77.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.56. DLB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.57 | ||
| Fwd PE | 21.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLB is valued cheaper than 81.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DLB is valued a bit cheaper than 77.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.46 | ||
| EV/EBITDA | 21.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DLB does not grow enough to justify the current Price/Earnings ratio.
DLB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)17.04
PEG (5Y)2.33
EPS Next 2Y6.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DLB has a Yearly Dividend Yield of 1.61%.
Compared to an average industry Dividend Yield of 11.80, DLB pays a better dividend. On top of this DLB pays more dividend than 94.62% of the companies listed in the same industry.
DLB's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
On average, the dividend of DLB grows each year by 10.85%, which is quite nice.
DLB has been paying a dividend for at least 10 years, so it has a reliable track record.
DLB has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.85%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
DLB pays out 52.61% of its income as dividend. This is a bit on the high side, but may be sustainable.
DLB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.61%
EPS Next 2Y6.66%
EPS Next 3YN/A
DOLBY LABORATORIES INC-CL A
NYSE:DLB (11/20/2024, 8:16:54 PM)
After market: 81.95 -0.03 (-0.04%)81.98
+11.07 (+15.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.57 | ||
| Fwd PE | 21.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)17.04
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 8.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.59% | ||
| PM (TTM) | 16.87% | ||
| GM | 88.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.14 | ||
| Quick Ratio | 4.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.44%
EPS 3Y1.08%
EPS 5Y
EPS Q2Q%
EPS Next Y1.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y