DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLB - US25659T1079 - Common Stock
64.88 USD
-0.52 (-0.8%)
DLB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. DLB has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DLB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DLB had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 7.90%, DLB is in the better half of the industry, outperforming 79.71% of the companies in the same industry.
DLB has a better Return On Equity (9.72%) than 73.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.48%, DLB belongs to the top of the industry, outperforming 80.07% 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 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 better Profit Margin (18.90%) than 81.52% of its industry peers.
DLB's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 20.75%, DLB belongs to the top of the industry, outperforming 86.59% 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 95.29% 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 | 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
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 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.
2.2 Solvency
DLB has an Altman-Z score of 8.39. This indicates that DLB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DLB (8.39) is better than 84.78% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 8.39 |
ROIC/WACC0.77
WACC10.97%
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.
DLB has a better Current ratio (3.17) than 76.81% 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 76.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
DLB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.84%, which is quite good.
The Earnings Per Share has been growing by 8.55% 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 5.92%.
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)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
DLB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.99% yearly.
Based on estimates for the next years, DLB will show a small growth in Revenue. The Revenue will grow by 4.88% on average per year.
EPS Next Y0.45%
EPS Next 2Y3.53%
EPS Next 3Y5.99%
EPS Next 5YN/A
Revenue Next Year4.19%
Revenue Next 2Y4.11%
Revenue Next 3Y4.88%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.27, the valuation of DLB can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of DLB indicates a rather cheap valuation: DLB is cheaper than 81.52% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.77. DLB is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.20, the valuation of DLB can be described as correct.
DLB's Price/Forward Earnings ratio is rather cheap when compared to the industry. DLB is cheaper than 80.80% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, DLB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 15.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLB is valued cheaply inside the industry as 84.42% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DLB indicates a rather cheap valuation: DLB is cheaper than 86.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.4 | ||
| EV/EBITDA | 15.07 |
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)34.26
PEG (5Y)1.79
EPS Next 2Y3.53%
EPS Next 3Y5.99%
5. Dividend
5.1 Amount
DLB has a Yearly Dividend Yield of 2.18%.
Compared to an average industry Dividend Yield of 0.51, DLB pays a better dividend. On top of this DLB pays more dividend than 95.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, DLB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
The dividend of DLB is nicely growing with an annual growth rate of 8.45%!
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 2Y3.53%
EPS Next 3Y5.99%
NYSE:DLB (12/31/2025, 11:43:58 AM)
64.88
-0.52 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.51%
Inst Owner Change0.05%
Ins Owners1.07%
Ins Owner Change5.57%
Market Cap6.20B
Revenue(TTM)1.35B
Net Income(TTM)255.02M
Analysts82
Price Target92.31 (42.28%)
Short Float %4.81%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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)-5.48%
PT rev (3m)-5.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.87%
EPS NY rev (1m)0%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.51%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 15.2 | ||
| P/S | 4.59 | ||
| P/FCF | 14.4 | ||
| P/OCF | 13.12 | ||
| P/B | 2.36 | ||
| P/tB | 3.65 | ||
| EV/EBITDA | 15.07 |
EPS(TTM)4.25
EY6.55%
EPS(NY)4.27
Fwd EY6.58%
FCF(TTM)4.5
FCFY6.94%
OCF(TTM)4.94
OCFY7.62%
SpS14.13
BVpS27.46
TBVpS17.75
PEG (NY)34.26
PEG (5Y)1.79
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 | 8.39 |
F-Score7
WACC10.97%
ROIC/WACC0.77
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 2Y3.53%
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 Year4.19%
Revenue Next 2Y4.11%
Revenue Next 3Y4.88%
Revenue Next 5YN/A
EBIT growth 1Y5.76%
EBIT growth 3Y8.83%
EBIT growth 5Y4.89%
EBIT Next Year19.65%
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 15.27 and the Price/Book (PB) ratio is 2.36.
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%.