DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
USA - NYSE:DLB - US25659T1079 - Common Stock
64.985 USD
-0.58 (-0.88%)
DLB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. DLB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DLB has a correct valuation and a medium growth rate. This makes DLB very considerable for quality investing!
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 8.27%, DLB belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
DLB has a Return On Equity of 10.15%. This is in the better half of the industry: DLB outperforms 75.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.51%, DLB belongs to the top of the industry, outperforming 81.14% of the companies in the same industry.
DLB had an Average Return On Invested Capital over the past 3 years of 8.02%. This is below the industry average of 12.07%.
The 3 year average ROIC (8.02%) for DLB is below the current ROIC(8.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.27% | ||
| ROE | 10.15% | ||
| ROIC | 8.51% |
ROA(3y)7.33%
ROA(5y)7.98%
ROE(3y)9.1%
ROE(5y)9.75%
ROIC(3y)8.02%
ROIC(5y)8.2%
1.3 Margins
DLB has a better Profit Margin (19.62%) than 83.63% of its industry peers.
In the last couple of years the Profit Margin of DLB has remained more or less at the same level.
DLB's Operating Margin of 21.47% is amongst the best of the industry. DLB outperforms 88.26% of its industry peers.
In the last couple of years the Operating Margin of DLB has declined.
With an excellent Gross Margin value of 88.52%, DLB belongs to the best of the industry, outperforming 95.37% 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 | 21.47% | ||
| PM (TTM) | 19.62% | ||
| GM | 88.52% |
OM growth 3Y-7.9%
OM growth 5Y-2.56%
PM growth 3Y-5.31%
PM growth 5Y0%
GM growth 3Y-0.33%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DLB is destroying value.
Compared to 1 year ago, DLB has less shares outstanding
Compared to 5 years ago, DLB has less shares outstanding
DLB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
DLB has an Altman-Z score of 8.60. This indicates that DLB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DLB (8.60) is better than 85.41% 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 | 8.6 |
ROIC/WACC0.77
WACC11.11%
2.3 Liquidity
A Current Ratio of 3.44 indicates that DLB has no problem at all paying its short term obligations.
DLB has a better Current ratio (3.44) than 80.07% of its industry peers.
DLB has a Quick Ratio of 3.36. This indicates that DLB is financially healthy and has no problem in meeting its short term obligations.
DLB's Quick ratio of 3.36 is amongst the best of the industry. DLB outperforms 80.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.81% over the past year.
The Earnings Per Share has been growing by 9.26% on average over the past years. This is quite good.
DLB shows a small growth in Revenue. In the last year, the Revenue has grown by 6.94%.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)11.81%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%9.86%
Revenue 1Y (TTM)6.94%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%9.25%
3.2 Future
The Earnings Per Share is expected to grow by 7.64% on average over the next years.
DLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.23% yearly.
EPS Next Y5.25%
EPS Next 2Y5.99%
EPS Next 3Y6.93%
EPS Next 5Y7.64%
Revenue Next Year5.43%
Revenue Next 2Y4.92%
Revenue Next 3Y4.78%
Revenue Next 5Y5.23%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 15.97, which indicates a correct valuation of DLB.
Based on the Price/Earnings ratio, DLB is valued cheaper than 80.43% of the companies in the same industry.
DLB is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.22, which indicates a correct valuation of DLB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DLB indicates a somewhat cheap valuation: DLB is cheaper than 79.36% of the companies listed in the same industry.
DLB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 15.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLB is valued cheaply inside the industry as 84.70% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DLB is valued cheaply inside the industry as 86.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.22 | ||
| EV/EBITDA | 14.83 |
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.
The excellent profitability rating of DLB may justify a higher PE ratio.
PEG (NY)3.04
PEG (5Y)1.72
EPS Next 2Y5.99%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.01%, DLB has a reasonable but not impressive dividend return.
DLB's Dividend Yield is rather good when compared to the industry average which is at 42.42. DLB pays more dividend than 95.02% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, DLB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
On average, the dividend of DLB grows each year by 9.47%, 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 for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.47%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
DLB pays out 46.78% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of DLB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP46.78%
EPS Next 2Y5.99%
EPS Next 3Y6.93%
NYSE:DLB (11/17/2025, 2:13:08 PM)
64.985
-0.58 (-0.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.07%
Inst Owner Change0.06%
Ins Owners1.08%
Ins Owner Change-0.74%
Market Cap6.23B
Revenue(TTM)1.35B
Net Income(TTM)264.26M
Analysts78
Price Target97.67 (50.3%)
Short Float %3.61%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend1.2
Dividend Growth(5Y)9.47%
DP46.78%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.5%
Min EPS beat(2)4.74%
Max EPS beat(2)8.26%
EPS beat(4)4
Avg EPS beat(4)8.82%
Min EPS beat(4)4.74%
Max EPS beat(4)15.12%
EPS beat(8)8
Avg EPS beat(8)12.28%
EPS beat(12)10
Avg EPS beat(12)12.86%
EPS beat(16)13
Avg EPS beat(16)11.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.22%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)2.35%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)2.35%
Revenue beat(8)3
Avg Revenue beat(8)-0.12%
Revenue beat(12)5
Avg Revenue beat(12)0.14%
Revenue beat(16)5
Avg Revenue beat(16)-0.69%
PT rev (1m)0%
PT rev (3m)-1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.97 | ||
| Fwd PE | 15.22 | ||
| P/S | 4.62 | ||
| P/FCF | 14.22 | ||
| P/OCF | 13.38 | ||
| P/B | 2.39 | ||
| P/tB | 3.73 | ||
| EV/EBITDA | 14.83 |
EPS(TTM)4.07
EY6.26%
EPS(NY)4.27
Fwd EY6.57%
FCF(TTM)4.57
FCFY7.03%
OCF(TTM)4.86
OCFY7.47%
SpS14.05
BVpS27.18
TBVpS17.4
PEG (NY)3.04
PEG (5Y)1.72
Graham Number49.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.27% | ||
| ROE | 10.15% | ||
| ROCE | 10.3% | ||
| ROIC | 8.51% | ||
| ROICexc | 11.34% | ||
| ROICexgc | 20.41% | ||
| OM | 21.47% | ||
| PM (TTM) | 19.62% | ||
| GM | 88.52% | ||
| FCFM | 32.52% |
ROA(3y)7.33%
ROA(5y)7.98%
ROE(3y)9.1%
ROE(5y)9.75%
ROIC(3y)8.02%
ROIC(5y)8.2%
ROICexc(3y)11.36%
ROICexc(5y)12.88%
ROICexgc(3y)17.78%
ROICexgc(5y)19.47%
ROCE(3y)9.71%
ROCE(5y)9.93%
ROICexgc growth 3Y-12.75%
ROICexgc growth 5Y-4.71%
ROICexc growth 3Y-18.76%
ROICexc growth 5Y-8.2%
OM growth 3Y-7.9%
OM growth 5Y-2.56%
PM growth 3Y-5.31%
PM growth 5Y0%
GM growth 3Y-0.33%
GM growth 5Y0.44%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 31.52% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 123.68% | ||
| Profit Quality | 165.77% | ||
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.36 | ||
| Altman-Z | 8.6 |
F-Score6
WACC11.11%
ROIC/WACC0.77
Cap/Depr(3y)47.88%
Cap/Depr(5y)55.27%
Cap/Sales(3y)3.14%
Cap/Sales(5y)3.93%
Profit Quality(3y)140.69%
Profit Quality(5y)133.53%
High Growth Momentum
Growth
EPS 1Y (TTM)11.81%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%9.86%
EPS Next Y5.25%
EPS Next 2Y5.99%
EPS Next 3Y6.93%
EPS Next 5Y7.64%
Revenue 1Y (TTM)6.94%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%9.25%
Revenue Next Year5.43%
Revenue Next 2Y4.92%
Revenue Next 3Y4.78%
Revenue Next 5Y5.23%
EBIT growth 1Y17.22%
EBIT growth 3Y-8.08%
EBIT growth 5Y-2.06%
EBIT Next Year26.84%
EBIT Next 3Y13.02%
EBIT Next 5Y12.17%
FCF growth 1Y45.82%
FCF growth 3Y-8.91%
FCF growth 5Y6.77%
OCF growth 1Y39.63%
OCF growth 3Y-9.93%
OCF growth 5Y-0.03%
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 8 / 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 15.97 and the Price/Book (PB) ratio is 2.39.
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 46.78%.