DOLBY LABORATORIES INC-CL A (DLB) Fundamental Analysis & Valuation

NYSE:DLB • US25659T1079

Current stock price

60.775 USD
-0.73 (-1.19%)
Last:

This DLB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

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.
  • In the past 5 years DLB has always been profitable.
  • Each year in the past 5 years DLB had a positive operating cash flow.
DLB Yearly Net Income VS EBIT VS OCF VS FCFDLB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

1.2 Ratios

  • The Return On Assets of DLB (7.53%) is better than 80.87% of its industry peers.
  • Looking at the Return On Equity, with a value of 9.27%, DLB is in the better half of the industry, outperforming 73.65% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 8.23%, DLB belongs to the best of the industry, outperforming 80.51% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for DLB is below the industry average of 10.78%.
Industry RankSector 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%
DLB Yearly ROA, ROE, ROICDLB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • DLB has a better Profit Margin (17.97%) than 84.12% of its industry peers.
  • In the last couple of years the Profit Margin of DLB has remained more or less at the same level.
  • The Operating Margin of DLB (19.98%) is better than 87.73% of its industry peers.
  • In the last couple of years the Operating Margin of DLB has grown nicely.
  • Looking at the Gross Margin, with a value of 87.86%, DLB belongs to the top of the industry, outperforming 94.95% of the companies in the same industry.
  • DLB's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
DLB Yearly Profit, Operating, Gross MarginsDLB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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9

2. DLB Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DLB is destroying value.
  • Compared to 1 year ago, DLB has about the same amount of shares outstanding.
  • Compared to 5 years ago, DLB has less shares outstanding
  • 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.
DLB Yearly Shares OutstandingDLB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
DLB Yearly Total Debt VS Total AssetsDLB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 8.09 indicates that DLB is not in any danger for bankruptcy at the moment.
  • DLB has a Altman-Z score of 8.09. This is amongst the best in the industry. DLB outperforms 86.64% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.09
ROIC/WACC0.76
WACC10.8%
DLB Yearly LT Debt VS Equity VS FCFDLB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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.
  • With a decent Current ratio value of 3.17, DLB is doing good in the industry, outperforming 74.37% of the companies in the same industry.
  • 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 74.01% of its industry peers.
Industry RankSector Rank
Current Ratio 3.17
Quick Ratio 3.1
DLB Yearly Current Assets VS Current LiabilitesDLB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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4

3. DLB Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.11% 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 1.80% in the past year.
  • DLB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.03% yearly.
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

  • Based on estimates for the next years, DLB will show a small growth in Earnings Per Share. The EPS will grow by 6.48% on average per year.
  • The Revenue is expected to grow by 4.93% on average over the next years.
EPS Next Y3.14%
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

  • 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.
DLB Yearly Revenue VS EstimatesDLB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B
DLB Yearly EPS VS EstimatesDLB Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4 5

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6

4. DLB Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 14.57, the valuation of DLB can be described as correct.
  • 80.51% of the companies in the same industry are more expensive than DLB, based on the Price/Earnings ratio.
  • DLB is valuated rather cheaply when we compare the Price/Earnings ratio to 25.73, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 12.99 indicates a correct valuation of DLB.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DLB indicates a somewhat cheap valuation: DLB is cheaper than 79.06% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.72, DLB is valued a bit cheaper.
Industry RankSector Rank
PE 14.57
Fwd PE 12.99
DLB Price Earnings VS Forward Price EarningsDLB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 81.23% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, DLB is valued a bit cheaper than the industry average as 79.78% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.29
EV/EBITDA 14.65
DLB Per share dataDLB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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)4.64
PEG (5Y)1.7
EPS Next 2Y4.93%
EPS Next 3Y6.48%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. DLB Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.29%, DLB has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.59, DLB pays a better dividend. On top of this DLB pays more dividend than 94.58% of the companies listed in the same industry.
  • DLB's Dividend Yield is a higher than the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 2.29%

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 Years10
Div Non Decr Years10
DLB Yearly Dividends per shareDLB Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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 Yearly Income VS Free CF VS DividendDLB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
DLB Dividend Payout.DLB Dividend Payout, showing the Payout Ratio.DLB Dividend Payout.PayoutRetained Earnings

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DLB Fundamentals: All Metrics, Ratios and Statistics

DOLBY LABORATORIES INC-CL A

NYSE:DLB (3/20/2026, 11:25:59 AM)

60.775

-0.73 (-1.19%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-29
Earnings (Next)04-29
Inst Owners99.45%
Inst Owner Change1.96%
Ins Owners1.28%
Ins Owner Change7.28%
Market Cap5.81B
Revenue(TTM)1.34B
Net Income(TTM)240.52M
Analysts80
Price Target89.58 (47.4%)
Short Float %5.88%
Short Ratio4.39
Dividend
Industry RankSector Rank
Dividend Yield 2.29%
Yearly Dividend1.33
Dividend Growth(5Y)8.45%
DP53.8%
Div Incr Years10
Div Non Decr Years10
Ex-Date02-10
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)-0.31%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.13%
Valuation
Industry RankSector Rank
PE 14.57
Fwd PE 12.99
P/S 4.34
P/FCF 15.29
P/OCF 13.82
P/B 2.24
P/tB 3.42
EV/EBITDA 14.65
EPS(TTM)4.17
EY6.86%
EPS(NY)4.68
Fwd EY7.7%
FCF(TTM)3.97
FCFY6.54%
OCF(TTM)4.4
OCFY7.24%
SpS14.01
BVpS27.15
TBVpS17.79
PEG (NY)4.64
PEG (5Y)1.7
Graham Number50.47
Profitability
Industry RankSector 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 RankSector 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 8.09
F-Score7
WACC10.8%
ROIC/WACC0.76
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 Y3.14%
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 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 8 / 10.


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 3.14% in the next year.


Can you provide the dividend sustainability for DLB stock?

The dividend rating of DOLBY LABORATORIES INC-CL A (DLB) is 7 / 10 and the dividend payout ratio is 53.8%.