DOLBY LABORATORIES INC-CL A (DLB)
US25659T1079 - Common Stock
We assign a fundamental rating of 7 out of 10 to DLB. DLB was compared to 276 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 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.
DLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DLB (6.41%) is better than 83.21% of its industry peers.
DLB's Return On Equity of 8.03% is amongst the best of the industry. DLB outperforms 80.66% of its industry peers.
DLB has a better Return On Invested Capital (7.88%) than 85.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DLB is in line with the industry average of 10.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 8.03% | ||
| ROIC | 7.88% |
ROA(3y)7.86%
ROA(5y)8.11%
ROE(3y)9.55%
ROE(5y)9.85%
ROIC(3y)8.72%
ROIC(5y)8.55%
1.3 Margins
With an excellent Profit Margin value of 14.70%, DLB belongs to the best of the industry, outperforming 86.13% of the companies in the same industry.
In the last couple of years the Profit Margin of DLB has grown nicely.
The Operating Margin of DLB (18.84%) is better than 89.42% of its industry peers.
In the last couple of years the Operating Margin of DLB has grown nicely.
DLB has a Gross Margin of 88.27%. This is amongst the best in the industry. DLB outperforms 95.26% 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 | 18.84% | ||
| PM (TTM) | 14.7% | ||
| GM | 88.27% |
OM growth 3Y2.15%
OM growth 5Y3.1%
PM growth 3Y-8.13%
PM growth 5Y31.32%
GM growth 3Y0.33%
GM growth 5Y0.08%
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.
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
An Altman-Z score of 9.81 indicates that DLB is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.81, DLB belongs to the best of the industry, outperforming 89.05% 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 | 9.81 |
ROIC/WACC0.79
WACC9.92%
2.3 Liquidity
A Current Ratio of 3.68 indicates that DLB has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.68, DLB belongs to the best of the industry, outperforming 80.29% of the companies in the same industry.
DLB has a Quick Ratio of 3.59. This indicates that DLB is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of DLB (3.59) is better than 79.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.68 | ||
| Quick Ratio | 3.59 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.77% over the past year.
The Earnings Per Share has been growing slightly by 6.79% on average over the past years.
The Revenue has been growing slightly by 3.51% in the past year.
DLB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.27% yearly.
EPS 1Y (TTM)6.77%
EPS 3Y8.18%
EPS 5Y6.79%
EPS growth Q2Q-9.01%
Revenue 1Y (TTM)3.51%
Revenue growth 3Y3.81%
Revenue growth 5Y4.27%
Revenue growth Q2Q-5.77%
3.2 Future
DLB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.75% yearly.
The Revenue is expected to grow by 4.98% on average over the next years.
EPS Next Y4.96%
EPS Next 2Y5.4%
EPS Next 3Y6.75%
EPS Next 5YN/A
Revenue Next Year0.15%
Revenue Next 2Y2.45%
Revenue Next 3Y4.98%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DLB is valuated rather expensively with a Price/Earnings ratio of 22.97.
DLB's Price/Earnings ratio is rather cheap when compared to the industry. DLB is cheaper than 83.21% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.06, DLB is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.10, the valuation of DLB can be described as rather expensive.
Based on the Price/Forward Earnings ratio, DLB is valued cheaply inside the industry as 83.21% of the companies are valued more expensively.
DLB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.97 | ||
| Fwd PE | 20.1 |
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 84.31% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DLB indicates a rather cheap valuation: DLB is cheaper than 81.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.28 | ||
| EV/EBITDA | 20.08 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.63
PEG (5Y)3.38
EPS Next 2Y5.4%
EPS Next 3Y6.75%
5. Dividend
5.1 Amount
DLB has a Yearly Dividend Yield of 1.50%. 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 11.48. DLB pays more dividend than 93.80% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, DLB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
The dividend of DLB is nicely growing with an annual growth rate of 10.85%!
DLB has been paying a dividend for at least 10 years, so it has a reliable track record.
As DLB did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)10.85%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
DLB pays out 56.33% 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.
DP56.33%
EPS Next 2Y5.4%
EPS Next 3Y6.75%
DOLBY LABORATORIES INC-CL A
NYSE:DLB (5/2/2024, 7:04:00 PM)
After market: 79.71 0 (0%)79.71
+2.13 (+2.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.97 | ||
| Fwd PE | 20.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.63
PEG (5Y)3.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 8.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.84% | ||
| PM (TTM) | 14.7% | ||
| GM | 88.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.68 | ||
| Quick Ratio | 3.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.77%
EPS 3Y8.18%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.51%
Revenue growth 3Y3.81%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y