DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
NYSE:DLB - New York Stock Exchange, Inc. - US25659T1079 - Common Stock - Currency: USD
Taking everything into account, DLB scores 7 out of 10 in our fundamental rating. DLB was compared to 286 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 decent growth rate and is not valued too expensively. These ratings would make DLB suitable for quality investing!
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.
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 better Return On Assets (8.42%) than 84.23% of its industry peers.
DLB has a Return On Equity of 10.57%. This is amongst the best in the industry. DLB outperforms 80.29% of its industry peers.
DLB has a Return On Invested Capital of 8.12%. This is amongst the best in the industry. DLB outperforms 82.80% of its industry peers.
DLB had an Average Return On Invested Capital over the past 3 years of 8.02%. This is below the industry average of 12.10%.
The 3 year average ROIC (8.02%) for DLB is below the current ROIC(8.12%), indicating increased profibility in the last year.
| 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
DLB has a better Profit Margin (20.56%) than 87.81% 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 20.78%, DLB belongs to the best of the industry, outperforming 88.17% of the companies in the same industry.
DLB's Operating Margin has declined in the last couple of years.
DLB has a better Gross Margin (88.97%) than 94.62% of its industry peers.
DLB's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for DLB has been reduced compared to 1 year ago.
Compared to 5 years ago, DLB has less shares outstanding
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 9.42 indicates that DLB is not in any danger for bankruptcy at the moment.
The Altman-Z score of DLB (9.42) is better than 77.78% of its industry peers.
DLB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.42 |
ROIC/WACC0.74
WACC11.01%
2.3 Liquidity
DLB has a Current Ratio of 2.86. This indicates that DLB is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.86, DLB is in the better half of the industry, outperforming 74.55% of the companies in the same industry.
DLB has a Quick Ratio of 2.78. This indicates that DLB is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.78, DLB is doing good in the industry, outperforming 74.55% 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 grown by an nice 13.26% 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.
DLB shows a decrease in Revenue. In the last year, the revenue decreased by -2.00%.
Measured over the past years, DLB shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
EPS 1Y (TTM)13.26%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%12.87%
Revenue 1Y (TTM)-2%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%13.13%
3.2 Future
DLB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.06% yearly.
The Revenue is expected to grow by 6.04% on average over the next years.
EPS Next Y7.91%
EPS Next 2Y7.44%
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.
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 22.22, which indicates a rather expensive current valuation of DLB.
82.08% of the companies in the same industry are more expensive than DLB, based on the Price/Earnings ratio.
DLB is valuated rather cheaply when we compare the Price/Earnings ratio to 28.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.91 indicates a rather expensive valuation of DLB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DLB indicates a rather cheap valuation: DLB is cheaper than 82.44% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DLB to the average of the S&P500 Index (93.88), we can say DLB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 19.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLB is valued cheaply inside the industry as 82.44% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DLB indicates a somewhat cheap valuation: DLB is cheaper than 79.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.09 | ||
| EV/EBITDA | 21.24 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.81
PEG (5Y)2.4
EPS Next 2Y7.44%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
DLB has a Yearly Dividend Yield of 1.64%.
Compared to an average industry Dividend Yield of 12.40, DLB pays a better dividend. On top of this DLB pays more dividend than 94.27% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.27, DLB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
On average, the dividend of DLB grows each year by 9.47%, which is quite nice.
DLB has paid a dividend for at least 10 years, which is a reliable track record.
As DLB did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.47%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
43.76% of the earnings are spent on dividend by DLB. 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 2Y7.44%
EPS Next 3Y9.06%
DOLBY LABORATORIES INC-CL A
NYSE:DLB (1/30/2025, 8:19:45 PM)
After market: 87.32 0 (0%)87.32
+6.69 (+8.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.19%
Inst Owner Change-0.19%
Ins Owners1.02%
Ins Owner Change7.91%
Market Cap8.35B
Analysts82.5
Price Target102 (16.81%)
Short Float %1.26%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend1.2
Dividend Growth(5Y)9.47%
DP43.76%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
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)0%
PT rev (3m)1.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.24%
EPS NY rev (1m)0%
EPS NY rev (3m)6.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 19.91 | ||
| P/S | 6.55 | ||
| P/FCF | 28.09 | ||
| P/OCF | 25.51 | ||
| P/B | 3.37 | ||
| P/tB | 5.53 | ||
| EV/EBITDA | 21.24 |
EPS(TTM)3.93
EY4.5%
EPS(NY)4.39
Fwd EY5.02%
FCF(TTM)3.11
FCFY3.56%
OCF(TTM)3.42
OCFY3.92%
SpS13.32
BVpS25.91
TBVpS15.79
PEG (NY)2.81
PEG (5Y)2.4
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 | 9.42 |
F-Score7
WACC11.01%
ROIC/WACC0.74
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)13.26%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%12.87%
EPS Next Y7.91%
EPS Next 2Y7.44%
EPS Next 3Y9.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-2%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%13.13%
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 Year28.44%
EBIT Next 3Y13.34%
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%