DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLB - US25659T1079 - Common Stock
66.29 USD
-0.02 (-0.03%)
66.29 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to DLB. DLB was compared to 281 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 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
Looking at the Return On Assets, with a value of 7.90%, DLB is in the better half of the industry, outperforming 79.36% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.72%, DLB is in the better half of the industry, outperforming 74.38% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.48%, DLB is doing good in the industry, outperforming 79.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DLB is below the industry average of 12.03%.
| 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 has a Profit Margin of 18.90%. This is amongst the best in the industry. DLB outperforms 82.56% of its industry peers.
In the last couple of years the Profit Margin of DLB has remained more or less at the same level.
Looking at the Operating Margin, with a value of 20.75%, DLB belongs to the top of the industry, outperforming 86.48% of the companies in the same industry.
DLB's Operating Margin has improved in the last couple of years.
DLB has a Gross Margin of 88.13%. This is amongst the best in the industry. DLB outperforms 95.02% of its industry peers.
DLB's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DLB is destroying value.
Compared to 1 year ago, DLB has about the same amount of shares outstanding.
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
DLB has an Altman-Z score of 8.48. 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 8.48, DLB belongs to the top of the industry, outperforming 83.99% of the companies in the same industry.
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 | 8.48 |
ROIC/WACC0.78
WACC10.83%
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.
The Current ratio of DLB (3.17) is better than 77.22% 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 77.58% 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.
DLB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.55% yearly.
The Revenue has been growing slightly by 5.92% in the past year.
The Revenue has been growing slightly by 3.03% on average over the past years.
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.
The Revenue is expected to grow by 4.88% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 15.60, DLB is valued correctly.
81.14% of the companies in the same industry are more expensive than DLB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.37, DLB is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.53 indicates a correct valuation of DLB.
Based on the Price/Forward Earnings ratio, DLB is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
DLB is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLB is valued cheaper than 83.27% of the companies in the same industry.
DLB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DLB is cheaper than 87.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.72 | ||
| EV/EBITDA | 15.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DLB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)35.01
PEG (5Y)1.82
EPS Next 2Y4.56%
EPS Next 3Y5.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.15%, 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 59.20. DLB pays more dividend than 95.37% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, DLB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
5.2 History
On average, the dividend of DLB grows each year by 8.45%, which is quite nice.
DLB has paid a dividend for at least 10 years, which is 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
49.64% 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.
DP49.64%
EPS Next 2Y4.56%
EPS Next 3Y5.99%
66.29
-0.02 (-0.03%)
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-1.62%
Market Cap6.33B
Revenue(TTM)1.35B
Net Income(TTM)255.02M
Analysts78
Price Target97.67 (47.34%)
Short Float %4.42%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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)-22.87%
EPS NQ rev (3m)-22.87%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-9.51%
Revenue NQ rev (3m)-9.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 15.53 | ||
| P/S | 4.69 | ||
| P/FCF | 14.72 | ||
| P/OCF | 13.41 | ||
| P/B | 2.41 | ||
| P/tB | 3.73 | ||
| EV/EBITDA | 15.3 |
EPS(TTM)4.25
EY6.41%
EPS(NY)4.27
Fwd EY6.44%
FCF(TTM)4.5
FCFY6.8%
OCF(TTM)4.94
OCFY7.46%
SpS14.13
BVpS27.46
TBVpS17.75
PEG (NY)35.01
PEG (5Y)1.82
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 | 8.48 |
F-Score7
WACC10.83%
ROIC/WACC0.78
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 15.6 and the Price/Book (PB) ratio is 2.41.
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%.