DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
NYSE:DLB - New York Stock Exchange, Inc. - US25659T1079 - Common Stock - Currency: USD
Overall DLB gets a fundamental rating of 7 out of 10. We evaluated DLB against 282 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.
DLB had a positive operating cash flow in the past year.
Each year in the past 5 years DLB has been profitable.
In the past 5 years DLB always reported a positive cash flow from operatings.
1.2 Ratios
DLB has a better Return On Assets (7.95%) than 82.27% of its industry peers.
DLB's Return On Equity of 9.97% is fine compared to the rest of the industry. DLB outperforms 78.01% of its industry peers.
DLB's Return On Invested Capital of 8.44% is amongst the best of the industry. DLB outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DLB is below the industry average of 12.28%.
The 3 year average ROIC (8.02%) for DLB is below the current ROIC(8.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 9.97% | ||
| ROIC | 8.44% |
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 (19.44%) than 87.23% of its industry peers.
DLB's Profit Margin has been stable in the last couple of years.
DLB has a better Operating Margin (21.44%) than 89.36% of its industry peers.
DLB's Operating Margin has declined in the last couple of years.
DLB has a better Gross Margin (88.92%) than 96.10% of its industry peers.
DLB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.44% | ||
| PM (TTM) | 19.44% | ||
| GM | 88.92% |
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
DLB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
An Altman-Z score of 8.83 indicates that DLB is not in any danger for bankruptcy at the moment.
The Altman-Z score of DLB (8.83) is better than 81.56% 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 | 8.83 |
ROIC/WACC0.78
WACC10.86%
2.3 Liquidity
A Current Ratio of 3.04 indicates that DLB has no problem at all paying its short term obligations.
DLB has a better Current ratio (3.04) than 78.01% of its industry peers.
DLB has a Quick Ratio of 2.96. This indicates that DLB is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.96, DLB is doing good in the industry, outperforming 78.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.04 | ||
| Quick Ratio | 2.96 |
3. Growth
3.1 Past
DLB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.94%, which is quite good.
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 small growth in Revenue. In the last year, the Revenue has grown by 4.03%.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)14.94%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%5.51%
Revenue 1Y (TTM)4.03%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%1.38%
3.2 Future
The Earnings Per Share is expected to grow by 6.54% on average over the next years.
The Revenue is expected to grow by 4.92% on average over the next years.
EPS Next Y5.52%
EPS Next 2Y5.74%
EPS Next 3Y6.54%
EPS Next 5YN/A
Revenue Next Year5.04%
Revenue Next 2Y4.84%
Revenue Next 3Y4.92%
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.
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
DLB is valuated rather expensively with a Price/Earnings ratio of 18.79.
DLB's Price/Earnings ratio is rather cheap when compared to the industry. DLB is cheaper than 82.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, DLB is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.69, DLB is valued on the expensive side.
DLB's Price/Forward Earnings ratio is rather cheap when compared to the industry. DLB is cheaper than 81.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DLB to the average of the S&P500 Index (21.76), we can say DLB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 17.69 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than DLB, based on the Enterprise Value to EBITDA ratio.
DLB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DLB is cheaper than 83.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.5 | ||
| EV/EBITDA | 18.13 |
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)3.41
PEG (5Y)2.03
EPS Next 2Y5.74%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
DLB has a Yearly Dividend Yield of 1.75%.
DLB's Dividend Yield is rather good when compared to the industry average which is at 33.28. DLB pays more dividend than 95.74% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.37, DLB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of DLB is nicely growing with an annual growth rate of 9.47%!
DLB has been paying a dividend for at least 10 years, so it has a reliable track record.
DLB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.47%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
DLB pays out 47.03% 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.
DP47.03%
EPS Next 2Y5.74%
EPS Next 3Y6.54%
75.17
-0.51 (-0.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners95.73%
Inst Owner Change-0.02%
Ins Owners1.09%
Ins Owner Change0.13%
Market Cap7.22B
Analysts82.5
Price Target99.45 (32.3%)
Short Float %2.04%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend1.2
Dividend Growth(5Y)9.47%
DP47.03%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.95%
Min EPS beat(2)4.74%
Max EPS beat(2)7.16%
EPS beat(4)4
Avg EPS beat(4)11.54%
Min EPS beat(4)4.74%
Max EPS beat(4)19.15%
EPS beat(8)7
Avg EPS beat(8)11.13%
EPS beat(12)10
Avg EPS beat(12)13.43%
EPS beat(16)13
Avg EPS beat(16)13.56%
Revenue beat(2)1
Avg Revenue beat(2)-0.34%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)2.11%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)2.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.68%
Revenue beat(12)4
Avg Revenue beat(12)-0.26%
Revenue beat(16)5
Avg Revenue beat(16)-0.72%
PT rev (1m)0%
PT rev (3m)-2.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 17.69 | ||
| P/S | 5.47 | ||
| P/FCF | 18.5 | ||
| P/OCF | 17.23 | ||
| P/B | 2.81 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 18.13 |
EPS(TTM)4
EY5.32%
EPS(NY)4.25
Fwd EY5.65%
FCF(TTM)4.06
FCFY5.41%
OCF(TTM)4.36
OCFY5.8%
SpS13.74
BVpS26.79
TBVpS17.04
PEG (NY)3.41
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 9.97% | ||
| ROCE | 10.21% | ||
| ROIC | 8.44% | ||
| ROICexc | 10.9% | ||
| ROICexgc | 19.36% | ||
| OM | 21.44% | ||
| PM (TTM) | 19.44% | ||
| GM | 88.92% | ||
| FCFM | 29.57% |
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 | 34.31% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.34% | ||
| Profit Quality | 152.14% | ||
| Current Ratio | 3.04 | ||
| Quick Ratio | 2.96 | ||
| Altman-Z | 8.83 |
F-Score7
WACC10.86%
ROIC/WACC0.78
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)14.94%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%5.51%
EPS Next Y5.52%
EPS Next 2Y5.74%
EPS Next 3Y6.54%
EPS Next 5YN/A
Revenue 1Y (TTM)4.03%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%1.38%
Revenue Next Year5.04%
Revenue Next 2Y4.84%
Revenue Next 3Y4.92%
Revenue Next 5YN/A
EBIT growth 1Y18.66%
EBIT growth 3Y-8.08%
EBIT growth 5Y-2.06%
EBIT Next Year27.7%
EBIT Next 3Y13.2%
EBIT Next 5YN/A
FCF growth 1Y12.13%
FCF growth 3Y-8.91%
FCF growth 5Y6.77%
OCF growth 1Y8.92%
OCF growth 3Y-9.93%
OCF growth 5Y-0.03%