DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
USA - NYSE:DLB - US25659T1079 - Common Stock
71.58 USD
-0.52 (-0.72%)
71.58 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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. DLB has a correct valuation and a medium growth rate.
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.
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
The Return On Assets of DLB (8.27%) is better than 82.50% of its industry peers.
The Return On Equity of DLB (10.15%) is better than 77.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.51%, DLB belongs to the top of the industry, outperforming 81.07% 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 11.76%.
The 3 year average ROIC (8.02%) for DLB is below the current ROIC(8.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.27% | ||
| ROE | 10.15% | ||
| ROIC | 8.51% |
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
Looking at the Profit Margin, with a value of 19.62%, DLB belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
DLB's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 21.47%, DLB belongs to the top of the industry, outperforming 87.86% 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 (88.52%) than 95.00% of its industry peers.
DLB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.47% | ||
| PM (TTM) | 19.62% | ||
| GM | 88.52% |
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
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 9.24 indicates that DLB is not in any danger for bankruptcy at the moment.
DLB's Altman-Z score of 9.24 is amongst the best of the industry. DLB outperforms 83.21% 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 | 9.24 |
ROIC/WACC0.77
WACC11.1%
2.3 Liquidity
A Current Ratio of 3.44 indicates that DLB has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.44, DLB belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
A Quick Ratio of 3.36 indicates that DLB has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.36, DLB belongs to the top of the industry, outperforming 80.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.81% over the past year.
The Earnings Per Share has been growing by 9.26% 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 6.94%.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)11.81%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%9.86%
Revenue 1Y (TTM)6.94%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%9.25%
3.2 Future
The Earnings Per Share is expected to grow by 6.93% on average over the next years.
The Revenue is expected to grow by 4.78% on average over the next years.
EPS Next Y5.25%
EPS Next 2Y5.99%
EPS Next 3Y6.93%
EPS Next 5YN/A
Revenue Next Year5.43%
Revenue Next 2Y4.92%
Revenue Next 3Y4.78%
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.
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
The Price/Earnings ratio is 17.59, which indicates a rather expensive current valuation of DLB.
DLB's Price/Earnings ratio is rather cheap when compared to the industry. DLB is cheaper than 81.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. DLB is valued slightly cheaper when compared to this.
DLB is valuated correctly with a Price/Forward Earnings ratio of 16.77.
Based on the Price/Forward Earnings ratio, DLB is valued cheaper than 83.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DLB to the average of the S&P500 Index (22.86), we can say DLB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 16.77 |
4.2 Price Multiples
85.36% of the companies in the same industry are more expensive than DLB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DLB is valued cheaply inside the industry as 89.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.66 | ||
| EV/EBITDA | 16.15 |
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)3.35
PEG (5Y)1.9
EPS Next 2Y5.99%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, DLB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 40.27, DLB pays a better dividend. On top of this DLB pays more dividend than 96.43% of the companies listed in the same industry.
DLB's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.47%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
46.78% of the earnings are spent on dividend by DLB. This is a bit on the high side, but may be sustainable.
DLB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.78%
EPS Next 2Y5.99%
EPS Next 3Y6.93%
71.58
-0.52 (-0.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners95.4%
Inst Owner Change1.71%
Ins Owners1.09%
Ins Owner Change-1.01%
Market Cap6.86B
Analysts80
Price Target97.67 (36.45%)
Short Float %3.02%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend1.2
Dividend Growth(5Y)9.47%
DP46.78%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.5%
Min EPS beat(2)4.74%
Max EPS beat(2)8.26%
EPS beat(4)4
Avg EPS beat(4)8.82%
Min EPS beat(4)4.74%
Max EPS beat(4)15.12%
EPS beat(8)8
Avg EPS beat(8)12.28%
EPS beat(12)10
Avg EPS beat(12)12.86%
EPS beat(16)13
Avg EPS beat(16)11.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.22%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)2.35%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)2.35%
Revenue beat(8)3
Avg Revenue beat(8)-0.12%
Revenue beat(12)5
Avg Revenue beat(12)0.14%
Revenue beat(16)5
Avg Revenue beat(16)-0.69%
PT rev (1m)-1.79%
PT rev (3m)-1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.48%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 16.77 | ||
| P/S | 5.09 | ||
| P/FCF | 15.66 | ||
| P/OCF | 14.74 | ||
| P/B | 2.63 | ||
| P/tB | 4.11 | ||
| EV/EBITDA | 16.15 |
EPS(TTM)4.07
EY5.69%
EPS(NY)4.27
Fwd EY5.96%
FCF(TTM)4.57
FCFY6.39%
OCF(TTM)4.86
OCFY6.79%
SpS14.05
BVpS27.18
TBVpS17.4
PEG (NY)3.35
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.27% | ||
| ROE | 10.15% | ||
| ROCE | 10.3% | ||
| ROIC | 8.51% | ||
| ROICexc | 11.34% | ||
| ROICexgc | 20.41% | ||
| OM | 21.47% | ||
| PM (TTM) | 19.62% | ||
| GM | 88.52% | ||
| FCFM | 32.52% |
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-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 28.81% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 121.04% | ||
| Profit Quality | 165.77% | ||
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.36 | ||
| Altman-Z | 9.24 |
F-Score6
WACC11.1%
ROIC/WACC0.77
Cap/Depr(3y)46.09%
Cap/Depr(5y)54.2%
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)11.81%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%9.86%
EPS Next Y5.25%
EPS Next 2Y5.99%
EPS Next 3Y6.93%
EPS Next 5YN/A
Revenue 1Y (TTM)6.94%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%9.25%
Revenue Next Year5.43%
Revenue Next 2Y4.92%
Revenue Next 3Y4.78%
Revenue Next 5YN/A
EBIT growth 1Y17.22%
EBIT growth 3Y-8.08%
EBIT growth 5Y-2.06%
EBIT Next Year26.84%
EBIT Next 3Y13.02%
EBIT Next 5YN/A
FCF growth 1Y45.82%
FCF growth 3Y-8.91%
FCF growth 5Y6.77%
OCF growth 1Y39.63%
OCF growth 3Y-9.93%
OCF growth 5Y-0.03%