DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLB - US25659T1079 - Common Stock
67.62 USD
+0.62 (+0.93%)
DLB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. Both the health and profitability get an excellent rating, making DLB a very profitable company, without any liquidiy or solvency issues. DLB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DLB had positive earnings in the past year.
In the past year DLB had a positive cash flow from operations.
In the past 5 years DLB has always been profitable.
DLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.90%, DLB is in the better half of the industry, outperforming 79.64% of the companies in the same industry.
With a decent Return On Equity value of 9.72%, DLB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Return On Invested Capital of DLB (8.48%) is better than 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLB is below the industry average of 11.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.9% | ||
| ROE | 9.72% | ||
| ROIC | 8.48% |
ROA(3y)7.69%
ROA(5y)7.98%
ROE(3y)9.61%
ROE(5y)9.79%
ROIC(3y)8.5%
ROIC(5y)8.69%
1.3 Margins
DLB's Profit Margin of 18.90% is amongst the best of the industry. DLB outperforms 82.50% of its industry peers.
In the last couple of years the Profit Margin of DLB has remained more or less at the same level.
With an excellent Operating Margin value of 20.75%, DLB belongs to the best of the industry, outperforming 86.43% of the companies in the same industry.
In the last couple of years the Operating Margin of DLB has grown nicely.
DLB's Gross Margin of 88.13% is amongst the best of the industry. DLB outperforms 95.00% of its industry peers.
DLB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.75% | ||
| PM (TTM) | 18.9% | ||
| GM | 88.13% |
OM growth 3Y6.2%
OM growth 5Y1.8%
PM growth 3Y8.78%
PM growth 5Y-1.04%
GM growth 3Y-0.22%
GM growth 5Y0.17%
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.
DLB has about the same amout of shares outstanding than it did 1 year ago.
DLB has less shares outstanding than it did 5 years ago.
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 8.54 indicates that DLB is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.54, DLB belongs to the best of the industry, outperforming 84.64% of the companies in the same industry.
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 | 8.54 |
ROIC/WACC0.77
WACC10.98%
2.3 Liquidity
DLB has a Current Ratio of 3.17. This indicates that DLB is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.17, DLB is doing good in the industry, outperforming 77.14% of the companies in the same industry.
DLB has a Quick Ratio of 3.10. This indicates that DLB is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.10, DLB is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
DLB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.84%, which is quite good.
DLB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.55% yearly.
Looking at the last year, DLB shows a small growth in Revenue. The Revenue has grown by 5.92% in the last year.
DLB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.03% yearly.
EPS 1Y (TTM)11.84%
EPS 3Y10.5%
EPS 5Y8.55%
EPS Q2Q%22.22%
Revenue 1Y (TTM)5.92%
Revenue growth 3Y2.47%
Revenue growth 5Y3.03%
Sales Q2Q%0.73%
3.2 Future
Based on estimates for the next years, DLB will show a small growth in Earnings Per Share. The EPS will grow by 5.99% on average per year.
The Revenue is expected to grow by 4.88% on average over the next years.
EPS Next Y0.45%
EPS Next 2Y4.56%
EPS Next 3Y5.99%
EPS Next 5YN/A
Revenue Next Year4.41%
Revenue Next 2Y4.46%
Revenue Next 3Y4.88%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.91, DLB is valued correctly.
DLB's Price/Earnings ratio is a bit cheaper when compared to the industry. DLB is cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of DLB to the average of the S&P500 Index (26.15), we can say DLB is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.84, which indicates a correct valuation of DLB.
DLB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DLB is cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. DLB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 15.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLB indicates a rather cheap valuation: DLB is cheaper than 82.14% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DLB is valued cheaply inside the industry as 86.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.01 | ||
| EV/EBITDA | 15.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DLB may justify a higher PE ratio.
PEG (NY)35.71
PEG (5Y)1.86
EPS Next 2Y4.56%
EPS Next 3Y5.99%
5. Dividend
5.1 Amount
DLB has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
DLB's Dividend Yield is rather good when compared to the industry average which is at 51.62. DLB pays more dividend than 95.36% of the companies in the same industry.
DLB's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
On average, the dividend of DLB grows each year by 8.45%, which is quite nice.
DLB has paid a dividend for at least 10 years, which is a reliable track record.
DLB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.45%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
DLB pays out 49.64% 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.
DP49.64%
EPS Next 2Y4.56%
EPS Next 3Y5.99%
NYSE:DLB (11/28/2025, 9:54:03 AM)
67.62
+0.62 (+0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.07%
Inst Owner Change0.04%
Ins Owners1.08%
Ins Owner Change-0.6%
Market Cap6.46B
Revenue(TTM)1.35B
Net Income(TTM)255.02M
Analysts78
Price Target97.67 (44.44%)
Short Float %4.31%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend1.33
Dividend Growth(5Y)8.45%
DP49.64%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.15%
Min EPS beat(2)8.26%
Max EPS beat(2)40.03%
EPS beat(4)4
Avg EPS beat(4)15.05%
Min EPS beat(4)4.74%
Max EPS beat(4)40.03%
EPS beat(8)8
Avg EPS beat(8)14.51%
EPS beat(12)11
Avg EPS beat(12)17.11%
EPS beat(16)13
Avg EPS beat(16)13.44%
Revenue beat(2)1
Avg Revenue beat(2)1.06%
Min Revenue beat(2)-0.23%
Max Revenue beat(2)2.35%
Revenue beat(4)2
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)2.35%
Revenue beat(8)3
Avg Revenue beat(8)-0.04%
Revenue beat(12)5
Avg Revenue beat(12)0.94%
Revenue beat(16)5
Avg Revenue beat(16)-0.33%
PT rev (1m)0%
PT rev (3m)-7.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 15.84 | ||
| P/S | 4.79 | ||
| P/FCF | 15.01 | ||
| P/OCF | 13.68 | ||
| P/B | 2.46 | ||
| P/tB | 3.81 | ||
| EV/EBITDA | 15.49 |
EPS(TTM)4.25
EY6.29%
EPS(NY)4.27
Fwd EY6.31%
FCF(TTM)4.5
FCFY6.66%
OCF(TTM)4.94
OCFY7.31%
SpS14.13
BVpS27.46
TBVpS17.75
PEG (NY)35.71
PEG (5Y)1.86
Graham Number51.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.9% | ||
| ROE | 9.72% | ||
| ROCE | 10.03% | ||
| ROIC | 8.48% | ||
| ROICexc | 11.34% | ||
| ROICexgc | 20.4% | ||
| OM | 20.75% | ||
| PM (TTM) | 18.9% | ||
| GM | 88.13% | ||
| FCFM | 31.89% |
ROA(3y)7.69%
ROA(5y)7.98%
ROE(3y)9.61%
ROE(5y)9.79%
ROIC(3y)8.5%
ROIC(5y)8.69%
ROICexc(3y)11.58%
ROICexc(5y)13.02%
ROICexgc(3y)19.56%
ROICexgc(5y)20.42%
ROCE(3y)10.05%
ROCE(5y)10.27%
ROICexgc growth 3Y7.72%
ROICexgc growth 5Y2.66%
ROICexc growth 3Y-0.34%
ROICexc growth 5Y-1.41%
OM growth 3Y6.2%
OM growth 5Y1.8%
PM growth 3Y8.78%
PM growth 5Y-1.04%
GM growth 3Y-0.22%
GM growth 5Y0.17%
F-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 47.75% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 128.39% | ||
| Profit Quality | 168.72% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.1 | ||
| Altman-Z | 8.54 |
F-Score7
WACC10.98%
ROIC/WACC0.77
Cap/Depr(3y)41.38%
Cap/Depr(5y)49.64%
Cap/Sales(3y)2.6%
Cap/Sales(5y)3.36%
Profit Quality(3y)150.02%
Profit Quality(5y)143.52%
High Growth Momentum
Growth
EPS 1Y (TTM)11.84%
EPS 3Y10.5%
EPS 5Y8.55%
EPS Q2Q%22.22%
EPS Next Y0.45%
EPS Next 2Y4.56%
EPS Next 3Y5.99%
EPS Next 5YN/A
Revenue 1Y (TTM)5.92%
Revenue growth 3Y2.47%
Revenue growth 5Y3.03%
Sales Q2Q%0.73%
Revenue Next Year4.41%
Revenue Next 2Y4.46%
Revenue Next 3Y4.88%
Revenue Next 5YN/A
EBIT growth 1Y5.76%
EBIT growth 3Y8.83%
EBIT growth 5Y4.89%
EBIT Next Year20.63%
EBIT Next 3Y11.28%
EBIT Next 5YN/A
FCF growth 1Y44.75%
FCF growth 3Y18.42%
FCF growth 5Y9.38%
OCF growth 1Y44.29%
OCF growth 3Y14.01%
OCF growth 5Y6.55%
DOLBY LABORATORIES INC-CL A / DLB FAQ
What is the fundamental rating for DLB stock?
ChartMill assigns a fundamental rating of 7 / 10 to DLB.
Can you provide the valuation status for DOLBY LABORATORIES INC-CL A?
ChartMill assigns a valuation rating of 6 / 10 to DOLBY LABORATORIES INC-CL A (DLB). This can be considered as Fairly Valued.
What is the profitability of DLB stock?
DOLBY LABORATORIES INC-CL A (DLB) has a profitability rating of 7 / 10.
What is the valuation of DOLBY LABORATORIES INC-CL A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DOLBY LABORATORIES INC-CL A (DLB) is 15.91 and the Price/Book (PB) ratio is 2.46.
Is the dividend of DOLBY LABORATORIES INC-CL A sustainable?
The dividend rating of DOLBY LABORATORIES INC-CL A (DLB) is 6 / 10 and the dividend payout ratio is 49.64%.