DOLBY LABORATORIES INC-CL A (DLB) Fundamental Analysis & Valuation
NYSE:DLB • US25659T1079
Current stock price
64.77 USD
+0.13 (+0.2%)
At close:
64.77 USD
0 (0%)
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This DLB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. DLB Profitability Analysis
1.1 Basic Checks
- DLB had positive earnings in the past year.
- DLB had a positive operating cash flow in the past year.
- DLB had positive earnings in each of the past 5 years.
- DLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.53%, DLB belongs to the top of the industry, outperforming 80.88% of the companies in the same industry.
- DLB has a better Return On Equity (9.27%) than 73.16% of its industry peers.
- With an excellent Return On Invested Capital value of 8.23%, DLB belongs to the best of the industry, outperforming 80.15% 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 10.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 9.27% | ||
| ROIC | 8.23% |
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
- With an excellent Profit Margin value of 17.97%, DLB belongs to the best of the industry, outperforming 84.56% of the companies in the same industry.
- DLB's Profit Margin has been stable in the last couple of years.
- DLB has a Operating Margin of 19.98%. This is amongst the best in the industry. DLB outperforms 87.13% of its industry peers.
- DLB's Operating Margin has improved in the last couple of years.
- DLB has a Gross Margin of 87.86%. This is amongst the best in the industry. DLB outperforms 94.85% 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 | 19.98% | ||
| PM (TTM) | 17.97% | ||
| GM | 87.86% |
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. DLB Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DLB is destroying value.
- DLB has about the same amout of shares outstanding than it did 1 year ago.
- 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 8.40 indicates that DLB is not in any danger for bankruptcy at the moment.
- DLB has a Altman-Z score of 8.40. This is amongst the best in the industry. DLB outperforms 85.29% 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 | 8.4 |
ROIC/WACC0.78
WACC10.59%
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.
- Looking at the Current ratio, with a value of 3.17, DLB is in the better half of the industry, outperforming 74.26% of the companies in the same industry.
- A Quick Ratio of 3.10 indicates that DLB has no problem at all paying its short term obligations.
- DLB has a better Quick ratio (3.10) than 74.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.1 |
3. DLB Growth Analysis
3.1 Past
- DLB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.11%.
- DLB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.55% yearly.
- DLB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.80%.
- Measured over the past years, DLB shows a small growth in Revenue. The Revenue has been growing by 3.03% on average per year.
EPS 1Y (TTM)6.11%
EPS 3Y10.5%
EPS 5Y8.55%
EPS Q2Q%-7.02%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y2.47%
Revenue growth 5Y3.03%
Sales Q2Q%-2.88%
3.2 Future
- DLB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.48% yearly.
- DLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.93% yearly.
EPS Next Y3.08%
EPS Next 2Y4.93%
EPS Next 3Y6.48%
EPS Next 5YN/A
Revenue Next Year5.37%
Revenue Next 2Y4.6%
Revenue Next 3Y4.93%
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. DLB Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 15.53 indicates a correct valuation of DLB.
- DLB's Price/Earnings ratio is a bit cheaper when compared to the industry. DLB is cheaper than 79.41% of the companies in the same industry.
- When comparing the Price/Earnings ratio of DLB to the average of the S&P500 Index (27.95), we can say DLB is valued slightly cheaper.
- DLB is valuated correctly with a Price/Forward Earnings ratio of 13.84.
- DLB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DLB is cheaper than 77.94% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 38.68. DLB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.53 | ||
| Fwd PE | 13.84 |
4.2 Price Multiples
- DLB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DLB is cheaper than 79.41% of the companies in the same industry.
- 79.78% of the companies in the same industry are more expensive than DLB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.3 | ||
| EV/EBITDA | 15.52 |
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)5.04
PEG (5Y)1.82
EPS Next 2Y4.93%
EPS Next 3Y6.48%
5. DLB Dividend Analysis
5.1 Amount
- DLB has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
- DLB's Dividend Yield is rather good when compared to the industry average which is at 0.64. DLB pays more dividend than 94.85% of the companies in the same industry.
- DLB's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
- On average, the dividend of DLB grows each year by 8.45%, which is quite nice.
- 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)8.45%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 53.80% 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.
DP53.8%
EPS Next 2Y4.93%
EPS Next 3Y6.48%
DLB Fundamentals: All Metrics, Ratios and Statistics
64.77
+0.13 (+0.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-30 2026-04-30
Inst Owners99.37%
Inst Owner Change0.16%
Ins Owners1.28%
Ins Owner Change7.24%
Market Cap6.19B
Revenue(TTM)1.34B
Net Income(TTM)240.52M
Analysts80
Price Target89.58 (38.3%)
Short Float %6.53%
Short Ratio5.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend1.33
Dividend Growth(5Y)8.45%
DP53.8%
Div Incr Years11
Div Non Decr Years11
Ex-Date02-10 2026-02-10 (0.36)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.87%
Min EPS beat(2)19.71%
Max EPS beat(2)40.03%
EPS beat(4)4
Avg EPS beat(4)18.19%
Min EPS beat(4)4.74%
Max EPS beat(4)40.03%
EPS beat(8)8
Avg EPS beat(8)14.94%
EPS beat(12)11
Avg EPS beat(12)15.41%
EPS beat(16)14
Avg EPS beat(16)15.04%
Revenue beat(2)1
Avg Revenue beat(2)1.53%
Min Revenue beat(2)-0.23%
Max Revenue beat(2)3.3%
Revenue beat(4)2
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)3.3%
Revenue beat(8)4
Avg Revenue beat(8)0.39%
Revenue beat(12)5
Avg Revenue beat(12)0.53%
Revenue beat(16)6
Avg Revenue beat(16)0.12%
PT rev (1m)0%
PT rev (3m)-2.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.97%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)2.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.53 | ||
| Fwd PE | 13.84 | ||
| P/S | 4.62 | ||
| P/FCF | 16.3 | ||
| P/OCF | 14.73 | ||
| P/B | 2.39 | ||
| P/tB | 3.64 | ||
| EV/EBITDA | 15.52 |
EPS(TTM)4.17
EY6.44%
EPS(NY)4.68
Fwd EY7.23%
FCF(TTM)3.97
FCFY6.14%
OCF(TTM)4.4
OCFY6.79%
SpS14.01
BVpS27.15
TBVpS17.79
PEG (NY)5.04
PEG (5Y)1.82
Graham Number50.469 (-22.08%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 9.27% | ||
| ROCE | 9.73% | ||
| ROIC | 8.23% | ||
| ROICexc | 10.75% | ||
| ROICexgc | 18.7% | ||
| OM | 19.98% | ||
| PM (TTM) | 17.97% | ||
| GM | 87.86% | ||
| FCFM | 28.36% |
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 | 45.24% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.67% | ||
| Profit Quality | 157.85% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.1 | ||
| Altman-Z | 8.4 |
F-Score7
WACC10.59%
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)6.11%
EPS 3Y10.5%
EPS 5Y8.55%
EPS Q2Q%-7.02%
EPS Next Y3.08%
EPS Next 2Y4.93%
EPS Next 3Y6.48%
EPS Next 5YN/A
Revenue 1Y (TTM)1.8%
Revenue growth 3Y2.47%
Revenue growth 5Y3.03%
Sales Q2Q%-2.88%
Revenue Next Year5.37%
Revenue Next 2Y4.6%
Revenue Next 3Y4.93%
Revenue Next 5YN/A
EBIT growth 1Y-3.6%
EBIT growth 3Y8.83%
EBIT growth 5Y4.89%
EBIT Next Year23.78%
EBIT Next 3Y11.88%
EBIT Next 5YN/A
FCF growth 1Y30.96%
FCF growth 3Y18.42%
FCF growth 5Y9.38%
OCF growth 1Y31.68%
OCF growth 3Y14.01%
OCF growth 5Y6.55%
DOLBY LABORATORIES INC-CL A / DLB Fundamental Analysis FAQ
What is the fundamental rating for DLB stock?
ChartMill assigns a fundamental rating of 7 / 10 to DLB.
What is the valuation status for DLB stock?
ChartMill assigns a valuation rating of 5 / 10 to DOLBY LABORATORIES INC-CL A (DLB). This can be considered as Fairly Valued.
How profitable is DOLBY LABORATORIES INC-CL A (DLB) stock?
DOLBY LABORATORIES INC-CL A (DLB) has a profitability rating of 8 / 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 15.53 and the Price/Book (PB) ratio is 2.39.
What is the expected EPS growth for DOLBY LABORATORIES INC-CL A (DLB) stock?
The Earnings per Share (EPS) of DOLBY LABORATORIES INC-CL A (DLB) is expected to grow by 3.08% in the next year.