DOLBY LABORATORIES INC-CL A (DLB)
US25659T1079 - Common Stock
Taking everything into account, DLB scores 7 out of 10 in our fundamental rating. DLB was compared to 280 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 decent growth rate and is not valued too expensively.
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.
DLB had positive earnings in each of the past 5 years.
Each year in the past 5 years DLB had a positive operating cash flow.
1.2 Ratios
DLB has a Return On Assets of 8.42%. This is amongst the best in the industry. DLB outperforms 84.59% of its industry peers.
Looking at the Return On Equity, with a value of 10.57%, DLB belongs to the top of the industry, outperforming 80.29% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.12%, DLB belongs to the best of the industry, outperforming 82.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DLB is below the industry average of 12.22%.
The last Return On Invested Capital (8.12%) for DLB is above the 3 year average (8.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 10.57% | ||
| ROIC | 8.12% |
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
The Profit Margin of DLB (20.56%) is better than 88.17% of its industry peers.
DLB's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 20.78%, DLB belongs to the best of the industry, outperforming 88.53% of the companies in the same industry.
DLB's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 88.97%, DLB belongs to the top of the industry, outperforming 94.27% 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 | 20.78% | ||
| PM (TTM) | 20.56% | ||
| GM | 88.97% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DLB is destroying value.
DLB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DLB has been reduced compared to 5 years ago.
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
An Altman-Z score of 9.11 indicates that DLB is not in any danger for bankruptcy at the moment.
The Altman-Z score of DLB (9.11) is better than 75.99% 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 | 9.11 |
ROIC/WACC0.68
WACC11.91%
2.3 Liquidity
A Current Ratio of 2.86 indicates that DLB has no problem at all paying its short term obligations.
The Current ratio of DLB (2.86) is better than 74.19% of its industry peers.
A Quick Ratio of 2.78 indicates that DLB has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.78, DLB is doing good in the industry, outperforming 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.78 |
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.
The Revenue has decreased by -2.01% in the past year.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)6.44%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%24.62%
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%4.9%
3.2 Future
The Earnings Per Share is expected to grow by 9.06% on average over the next years. This is quite good.
DLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.04% yearly.
EPS Next Y7.91%
EPS Next 2Y7.46%
EPS Next 3Y9.06%
EPS Next 5YN/A
Revenue Next Year6.12%
Revenue Next 2Y5.32%
Revenue Next 3Y6.04%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.34 indicates a rather expensive valuation of DLB.
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.
The average S&P500 Price/Earnings ratio is at 27.20. DLB is valued slightly cheaper when compared to this.
DLB is valuated rather expensively with a Price/Forward Earnings ratio of 18.85.
DLB's Price/Forward Earnings ratio is rather cheap when compared to the industry. DLB is cheaper than 80.65% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.73. DLB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 18.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLB is valued cheaper than 82.44% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DLB indicates a rather cheap valuation: DLB is cheaper than 81.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.82 | ||
| EV/EBITDA | 20.26 |
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)2.57
PEG (5Y)2.2
EPS Next 2Y7.46%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
DLB has a Yearly Dividend Yield of 1.70%. 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 13.95. DLB pays more dividend than 94.62% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, DLB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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 in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)9.47%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
DLB pays out 43.76% 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.
DP43.76%
EPS Next 2Y7.46%
EPS Next 3Y9.06%
DOLBY LABORATORIES INC-CL A
NYSE:DLB (12/20/2024, 8:05:31 PM)
After market: 77.29 0 (0%)77.29
-0.18 (-0.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.19%
Inst Owner Change-1.55%
Ins Owners1.02%
Ins Owner Change7.91%
Market Cap7.38B
Analysts82.5
Price Target102 (31.97%)
Short Float %1.36%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Dividend Growth(5Y)9.47%
DP43.76%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.13%
Min EPS beat(2)15.12%
Max EPS beat(2)19.15%
EPS beat(4)4
Avg EPS beat(4)13.98%
Min EPS beat(4)5.37%
Max EPS beat(4)19.15%
EPS beat(8)7
Avg EPS beat(8)18.13%
EPS beat(12)9
Avg EPS beat(12)12.91%
EPS beat(16)13
Avg EPS beat(16)17.53%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-2%
Max Revenue beat(2)-0.08%
Revenue beat(4)1
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-2%
Max Revenue beat(4)0.41%
Revenue beat(8)3
Avg Revenue beat(8)1.23%
Revenue beat(12)3
Avg Revenue beat(12)-0.56%
Revenue beat(16)6
Avg Revenue beat(16)0.53%
PT rev (1m)1.01%
PT rev (3m)1.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.24%
EPS NY rev (1m)6.56%
EPS NY rev (3m)6.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)1.56%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 18.85 | ||
| P/S | 5.79 | ||
| P/FCF | 24.82 | ||
| P/OCF | 22.54 | ||
| P/B | 2.98 | ||
| P/tB | 4.89 | ||
| EV/EBITDA | 20.26 |
EPS(TTM)3.8
EY4.92%
EPS(NY)4.1
Fwd EY5.31%
FCF(TTM)3.11
FCFY4.03%
OCF(TTM)3.43
OCFY4.44%
SpS13.35
BVpS25.96
TBVpS15.82
PEG (NY)2.57
PEG (5Y)2.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 10.57% | ||
| ROCE | 9.83% | ||
| ROIC | 8.12% | ||
| ROICexc | 9.9% | ||
| ROICexgc | 17.6% | ||
| OM | 20.78% | ||
| PM (TTM) | 20.56% | ||
| GM | 88.97% | ||
| FCFM | 23.34% |
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%
ROICexcg growth 3Y-12.75%
ROICexcg 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-Score7
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 39.71% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.17% | ||
| Profit Quality | 113.53% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.78 | ||
| Altman-Z | 9.11 |
F-Score7
WACC11.91%
ROIC/WACC0.68
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)6.44%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%24.62%
EPS Next Y7.91%
EPS Next 2Y7.46%
EPS Next 3Y9.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%4.9%
Revenue Next Year6.12%
Revenue Next 2Y5.32%
Revenue Next 3Y6.04%
Revenue Next 5YN/A
EBIT growth 1Y0.73%
EBIT growth 3Y-8.08%
EBIT growth 5Y-2.06%
EBIT Next Year31.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-11.74%
FCF growth 3Y-8.91%
FCF growth 5Y6.77%
OCF growth 1Y-10.85%
OCF growth 3Y-9.93%
OCF growth 5Y-0.03%