DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLB - US25659T1079 - Common Stock
67.38 USD
+0.61 (+0.91%)
67.38 USD
0 (0%)
Overall DLB gets a fundamental rating of 7 out of 10. We evaluated DLB against 280 industry peers in the Software industry. DLB gets an excellent profitability rating and is at the same time showing great financial health properties. DLB has a decent growth rate and is not valued too expensively.
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.
In the past 5 years DLB has always been profitable.
In the past 5 years DLB always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.90%, DLB is doing good in 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 80.36% of its industry peers.
DLB had an Average Return On Invested Capital over the past 3 years of 8.50%. This is below the industry average of 11.97%.
| 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.
DLB's Operating Margin of 20.75% is amongst the best of the industry. DLB outperforms 86.43% of its industry peers.
DLB's Operating Margin has improved in the last couple of years.
The Gross Margin of DLB (88.13%) is better than 95.00% of its industry peers.
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 | 20.75% | ||
| 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
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 remains at a similar level compared to 1 year ago.
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 8.52. This indicates that DLB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.52, DLB belongs to the top of the industry, outperforming 83.93% 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 | 8.52 |
ROIC/WACC0.77
WACC11%
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.
DLB has a Current ratio of 3.17. This is in the better half of the industry: DLB outperforms 77.14% of its industry peers.
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.
DLB has a Quick ratio of 3.10. This is in the better half of the industry: DLB outperforms 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.84% over the past year.
The Earnings Per Share has been growing by 8.55% 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 5.92%.
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
The Earnings Per Share is expected to grow by 5.99% 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 4.88% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 15.85, the valuation of DLB can be described as correct.
Based on the Price/Earnings ratio, DLB is valued cheaper than 81.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.98, DLB is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.78, DLB is valued correctly.
Based on the Price/Forward Earnings ratio, DLB is valued a bit cheaper than the industry average as 79.29% of the companies are valued more expensively.
DLB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 15.78 |
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 82.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DLB is valued cheaper than 86.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.96 | ||
| EV/EBITDA | 15.43 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)35.58
PEG (5Y)1.85
EPS Next 2Y4.56%
EPS Next 3Y5.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.13%, 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 51.73. DLB pays more dividend than 95.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, DLB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
The dividend of DLB is nicely growing with an annual growth rate of 8.45%!
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)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.
The dividend of DLB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.64%
EPS Next 2Y4.56%
EPS Next 3Y5.99%
67.38
+0.61 (+0.91%)
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 Cap6.44B
Revenue(TTM)1.35B
Net Income(TTM)255.02M
Analysts78
Price Target97.67 (44.95%)
Short Float %4.31%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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 | 15.85 | ||
| Fwd PE | 15.78 | ||
| P/S | 4.77 | ||
| P/FCF | 14.96 | ||
| P/OCF | 13.63 | ||
| P/B | 2.45 | ||
| P/tB | 3.8 | ||
| EV/EBITDA | 15.43 |
EPS(TTM)4.25
EY6.31%
EPS(NY)4.27
Fwd EY6.34%
FCF(TTM)4.5
FCFY6.69%
OCF(TTM)4.94
OCFY7.34%
SpS14.13
BVpS27.46
TBVpS17.75
PEG (NY)35.58
PEG (5Y)1.85
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 | 8.52 |
F-Score7
WACC11%
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 15.85 and the Price/Book (PB) ratio is 2.45.
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%.