DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
NYSE:DLB - New York Stock Exchange, Inc. - US25659T1079 - Common Stock - Currency: USD
Overall DLB gets a fundamental rating of 7 out of 10. We evaluated DLB against 504 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 decent growth rate and is not valued too expensively.
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.
In the past 5 years DLB has always been profitable.
Each year in the past 5 years DLB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DLB (7.95%) is better than 82.39% of its industry peers.
DLB has a better Return On Equity (9.97%) than 78.17% of its industry peers.
DLB has a Return On Invested Capital of 8.44%. This is amongst the best in the industry. DLB outperforms 83.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DLB is significantly below the industry average of 13.67%.
The last Return On Invested Capital (8.44%) for DLB is above the 3 year average (8.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 9.97% | ||
| ROIC | 8.44% |
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 19.44%, DLB belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
In the last couple of years the Profit Margin of DLB has remained more or less at the same level.
DLB has a Operating Margin of 21.44%. This is amongst the best in the industry. DLB outperforms 89.44% of its industry peers.
In the last couple of years the Operating Margin of DLB has declined.
DLB has a better Gross Margin (88.92%) than 96.13% 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 | 21.44% | ||
| PM (TTM) | 19.44% | ||
| GM | 88.92% |
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 8.77 indicates that DLB is not in any danger for bankruptcy at the moment.
The Altman-Z score of DLB (8.77) is better than 82.39% 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 | 8.77 |
ROIC/WACC0.75
WACC11.31%
2.3 Liquidity
A Current Ratio of 3.04 indicates that DLB has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.04, DLB is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
A Quick Ratio of 2.96 indicates that DLB has no problem at all paying its short term obligations.
The Quick ratio of DLB (2.96) is better than 77.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.04 | ||
| Quick Ratio | 2.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.94% over the past year.
The Earnings Per Share has been growing by 9.26% on average over the past years. This is quite good.
Looking at the last year, DLB shows a small growth in Revenue. The Revenue has grown by 4.03% in the last year.
DLB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.51% yearly.
EPS 1Y (TTM)14.94%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%5.51%
Revenue 1Y (TTM)4.03%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%1.38%
3.2 Future
The Earnings Per Share is expected to grow by 6.54% on average over the next years.
The Revenue is expected to grow by 4.92% on average over the next years.
EPS Next Y5.52%
EPS Next 2Y5.74%
EPS Next 3Y6.54%
EPS Next 5YN/A
Revenue Next Year5.04%
Revenue Next 2Y4.84%
Revenue Next 3Y4.92%
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.
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
DLB is valuated rather expensively with a Price/Earnings ratio of 18.74.
Based on the Price/Earnings ratio, DLB is valued cheaper than 82.04% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.52, DLB is valued a bit cheaper.
DLB is valuated rather expensively with a Price/Forward Earnings ratio of 17.64.
79.58% of the companies in the same industry are more expensive than DLB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DLB to the average of the S&P500 Index (22.25), we can say DLB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 17.64 |
4.2 Price Multiples
DLB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DLB is cheaper than 83.45% of the companies in the same industry.
84.51% 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 | 18.44 | ||
| EV/EBITDA | 17.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of DLB may justify a higher PE ratio.
PEG (NY)3.4
PEG (5Y)2.02
EPS Next 2Y5.74%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
DLB has a Yearly Dividend Yield of 1.77%.
Compared to an average industry Dividend Yield of 2.39, DLB pays a better dividend. On top of this DLB pays more dividend than 95.42% of the companies listed in the same industry.
DLB's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of DLB is nicely growing with an annual growth rate of 9.47%!
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)9.47%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
DLB pays out 47.03% 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.
DP47.03%
EPS Next 2Y5.74%
EPS Next 3Y6.54%
74.96
+0.5 (+0.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners92.74%
Inst Owner Change3.44%
Ins Owners1.12%
Ins Owner Change8.67%
Market Cap7.20B
Analysts82.5
Price Target99.45 (32.67%)
Short Float %2.1%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend1.2
Dividend Growth(5Y)9.47%
DP47.03%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.95%
Min EPS beat(2)4.74%
Max EPS beat(2)7.16%
EPS beat(4)4
Avg EPS beat(4)11.54%
Min EPS beat(4)4.74%
Max EPS beat(4)19.15%
EPS beat(8)7
Avg EPS beat(8)11.13%
EPS beat(12)10
Avg EPS beat(12)13.43%
EPS beat(16)13
Avg EPS beat(16)13.56%
Revenue beat(2)1
Avg Revenue beat(2)-0.34%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)2.11%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)2.11%
Revenue beat(8)2
Avg Revenue beat(8)-0.68%
Revenue beat(12)4
Avg Revenue beat(12)-0.26%
Revenue beat(16)5
Avg Revenue beat(16)-0.72%
PT rev (1m)0%
PT rev (3m)-2.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.08%
EPS NY rev (1m)-1.81%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 17.64 | ||
| P/S | 5.45 | ||
| P/FCF | 18.44 | ||
| P/OCF | 17.18 | ||
| P/B | 2.8 | ||
| P/tB | 4.4 | ||
| EV/EBITDA | 17.94 |
EPS(TTM)4
EY5.34%
EPS(NY)4.25
Fwd EY5.67%
FCF(TTM)4.06
FCFY5.42%
OCF(TTM)4.36
OCFY5.82%
SpS13.74
BVpS26.79
TBVpS17.04
PEG (NY)3.4
PEG (5Y)2.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 9.97% | ||
| ROCE | 10.21% | ||
| ROIC | 8.44% | ||
| ROICexc | 10.9% | ||
| ROICexgc | 19.36% | ||
| OM | 21.44% | ||
| PM (TTM) | 19.44% | ||
| GM | 88.92% | ||
| FCFM | 29.57% |
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-Score7
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 34.31% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.34% | ||
| Profit Quality | 152.14% | ||
| Current Ratio | 3.04 | ||
| Quick Ratio | 2.96 | ||
| Altman-Z | 8.77 |
F-Score7
WACC11.31%
ROIC/WACC0.75
Cap/Depr(3y)47.88%
Cap/Depr(5y)55.27%
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)14.94%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%5.51%
EPS Next Y5.52%
EPS Next 2Y5.74%
EPS Next 3Y6.54%
EPS Next 5YN/A
Revenue 1Y (TTM)4.03%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%1.38%
Revenue Next Year5.04%
Revenue Next 2Y4.84%
Revenue Next 3Y4.92%
Revenue Next 5YN/A
EBIT growth 1Y18.66%
EBIT growth 3Y-8.08%
EBIT growth 5Y-2.06%
EBIT Next Year27.7%
EBIT Next 3Y13.2%
EBIT Next 5YN/A
FCF growth 1Y12.13%
FCF growth 3Y-8.91%
FCF growth 5Y6.77%
OCF growth 1Y8.92%
OCF growth 3Y-9.93%
OCF growth 5Y-0.03%