DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
USA - NYSE:DLB - US25659T1079 - Common Stock
71.26 USD
-0.25 (-0.35%)
71.26 USD
0 (0%)
DLB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 281 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
DLB had positive earnings in the past year.
DLB had a positive operating cash flow in the past year.
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
The Return On Assets of DLB (8.27%) is better than 82.56% of its industry peers.
DLB's Return On Equity of 10.15% is fine compared to the rest of the industry. DLB outperforms 77.58% of its industry peers.
DLB's Return On Invested Capital of 8.51% is amongst the best of the industry. DLB outperforms 80.78% of its industry peers.
DLB had an Average Return On Invested Capital over the past 3 years of 8.02%. This is below the industry average of 11.95%.
The 3 year average ROIC (8.02%) for DLB is below the current ROIC(8.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.27% | ||
| ROE | 10.15% | ||
| ROIC | 8.51% |
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
DLB has a better Profit Margin (19.62%) than 83.99% of its industry peers.
In the last couple of years the Profit Margin of DLB has remained more or less at the same level.
DLB has a better Operating Margin (21.47%) than 87.90% of its industry peers.
DLB's Operating Margin has declined in the last couple of years.
The Gross Margin of DLB (88.52%) is better than 95.02% of its industry peers.
DLB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.47% | ||
| PM (TTM) | 19.62% | ||
| GM | 88.52% |
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.
DLB has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 9.18 indicates that DLB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.18, DLB belongs to the top of the industry, outperforming 83.63% of the companies in the same industry.
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 | 9.18 |
ROIC/WACC0.75
WACC11.31%
2.3 Liquidity
DLB has a Current Ratio of 3.44. This indicates that DLB is financially healthy and has no problem in meeting its short term obligations.
DLB has a Current ratio of 3.44. This is amongst the best in the industry. DLB outperforms 81.85% of its industry peers.
A Quick Ratio of 3.36 indicates that DLB has no problem at all paying its short term obligations.
DLB's Quick ratio of 3.36 is amongst the best of the industry. DLB outperforms 81.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.36 |
3. Growth
3.1 Past
DLB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.81%, which is quite good.
Measured over the past years, DLB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.26% on average per year.
The Revenue has been growing slightly by 6.94% in the past 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)11.81%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%9.86%
Revenue 1Y (TTM)6.94%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%9.25%
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 6.93% on average per year.
Based on estimates for the next years, DLB will show a small growth in Revenue. The Revenue will grow by 4.78% on average per year.
EPS Next Y5.25%
EPS Next 2Y5.95%
EPS Next 3Y6.93%
EPS Next 5YN/A
Revenue Next Year5.43%
Revenue Next 2Y4.92%
Revenue Next 3Y4.78%
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.
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 17.51.
Based on the Price/Earnings ratio, DLB is valued cheaply inside the industry as 80.78% of the companies are valued more expensively.
DLB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.71, which indicates a correct valuation of DLB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DLB indicates a rather cheap valuation: DLB is cheaper than 80.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DLB to the average of the S&P500 Index (23.32), we can say DLB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 16.71 |
4.2 Price Multiples
DLB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DLB is cheaper than 84.70% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DLB is valued cheaper than 87.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.59 | ||
| EV/EBITDA | 16 |
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)3.33
PEG (5Y)1.89
EPS Next 2Y5.95%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, DLB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 39.95, DLB pays a better dividend. On top of this DLB pays more dividend than 95.73% of the companies listed in the same industry.
DLB's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
The dividend of DLB is nicely growing with an annual growth rate of 9.47%!
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)9.47%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
DLB pays out 46.78% 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.
DP46.78%
EPS Next 2Y5.95%
EPS Next 3Y6.93%
71.26
-0.25 (-0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.07%
Inst Owner Change1.7%
Ins Owners1.08%
Ins Owner Change-1.01%
Market Cap6.83B
Analysts80
Price Target97.67 (37.06%)
Short Float %3.16%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend1.2
Dividend Growth(5Y)9.47%
DP46.78%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.5%
Min EPS beat(2)4.74%
Max EPS beat(2)8.26%
EPS beat(4)4
Avg EPS beat(4)8.82%
Min EPS beat(4)4.74%
Max EPS beat(4)15.12%
EPS beat(8)8
Avg EPS beat(8)12.28%
EPS beat(12)10
Avg EPS beat(12)12.86%
EPS beat(16)13
Avg EPS beat(16)11.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.22%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)2.35%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)2.35%
Revenue beat(8)3
Avg Revenue beat(8)-0.12%
Revenue beat(12)5
Avg Revenue beat(12)0.14%
Revenue beat(16)5
Avg Revenue beat(16)-0.69%
PT rev (1m)-7.04%
PT rev (3m)-1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 16.71 | ||
| P/S | 5.07 | ||
| P/FCF | 15.59 | ||
| P/OCF | 14.67 | ||
| P/B | 2.62 | ||
| P/tB | 4.1 | ||
| EV/EBITDA | 16 |
EPS(TTM)4.07
EY5.71%
EPS(NY)4.27
Fwd EY5.99%
FCF(TTM)4.57
FCFY6.41%
OCF(TTM)4.86
OCFY6.82%
SpS14.05
BVpS27.18
TBVpS17.4
PEG (NY)3.33
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.27% | ||
| ROE | 10.15% | ||
| ROCE | 10.3% | ||
| ROIC | 8.51% | ||
| ROICexc | 11.34% | ||
| ROICexgc | 20.41% | ||
| OM | 21.47% | ||
| PM (TTM) | 19.62% | ||
| GM | 88.52% | ||
| FCFM | 32.52% |
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-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 28.81% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 121.04% | ||
| Profit Quality | 165.77% | ||
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.36 | ||
| Altman-Z | 9.18 |
F-Score6
WACC11.31%
ROIC/WACC0.75
Cap/Depr(3y)46.09%
Cap/Depr(5y)54.2%
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)11.81%
EPS 3Y1.08%
EPS 5Y9.26%
EPS Q2Q%9.86%
EPS Next Y5.25%
EPS Next 2Y5.95%
EPS Next 3Y6.93%
EPS Next 5YN/A
Revenue 1Y (TTM)6.94%
Revenue growth 3Y-0.2%
Revenue growth 5Y0.51%
Sales Q2Q%9.25%
Revenue Next Year5.43%
Revenue Next 2Y4.92%
Revenue Next 3Y4.78%
Revenue Next 5YN/A
EBIT growth 1Y17.22%
EBIT growth 3Y-8.08%
EBIT growth 5Y-2.06%
EBIT Next Year26.84%
EBIT Next 3Y13.02%
EBIT Next 5YN/A
FCF growth 1Y45.82%
FCF growth 3Y-8.91%
FCF growth 5Y6.77%
OCF growth 1Y39.63%
OCF growth 3Y-9.93%
OCF growth 5Y-0.03%