DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
NYSE:DLB - US25659T1079 - Common Stock
72.64 USD
-0.15 (-0.21%)
72.64 USD
0 (0%)
Taking everything into account, DLB scores 7 out of 10 in our fundamental rating. DLB was compared to 280 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
DLB had positive earnings in the past year.
In the past year DLB had a positive cash flow from operations.
DLB had positive earnings in each of the past 5 years.
Each year in the past 5 years DLB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.27%, DLB belongs to the top of the industry, outperforming 81.79% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.15%, DLB is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
DLB's Return On Invested Capital of 8.51% is amongst the best of the industry. DLB outperforms 81.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DLB is below the industry average of 12.00%.
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 Profit Margin of 19.62%. This is amongst the best in the industry. DLB outperforms 83.93% of its industry peers.
DLB's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 21.47%, DLB belongs to the best of the industry, outperforming 87.86% of the companies in the same industry.
In the last couple of years the Operating Margin of DLB has declined.
The Gross Margin of DLB (88.52%) is better than 95.00% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DLB is destroying value.
The number of shares outstanding for DLB has been reduced compared to 1 year ago.
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 9.30 indicates that DLB is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.30, DLB belongs to the best of the industry, outperforming 86.43% 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 | 9.3 |
ROIC/WACC0.77
WACC11.12%
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 better Current ratio (3.44) than 80.71% of its industry peers.
DLB has a Quick Ratio of 3.36. This indicates that DLB is financially healthy and has no problem in meeting its short term obligations.
DLB has a better Quick ratio (3.36) than 80.00% 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.
The Earnings Per Share has been growing by 9.26% 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 6.94%.
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 5.18% on average per year.
EPS Next Y5.25%
EPS Next 2Y5.99%
EPS Next 3Y6.93%
EPS Next 5YN/A
Revenue Next Year5.5%
Revenue Next 2Y5.03%
Revenue Next 3Y5.18%
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 17.85, the valuation of DLB can be described as rather expensive.
79.64% of the companies in the same industry are more expensive than DLB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DLB to the average of the S&P500 Index (27.06), we can say DLB is valued slightly cheaper.
DLB is valuated rather expensively with a Price/Forward Earnings ratio of 17.02.
81.43% 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 (22.69), we can say DLB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 17.02 |
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 84.29% 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 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.89 | ||
| EV/EBITDA | 16.32 |
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)1.93
EPS Next 2Y5.99%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.81%, DLB has a reasonable but not impressive dividend return.
DLB's Dividend Yield is rather good when compared to the industry average which is at 59.44. DLB pays more dividend than 96.07% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, DLB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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 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 46.78% of its income as dividend. 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.
DP46.78%
EPS Next 2Y5.99%
EPS Next 3Y6.93%
72.64
-0.15 (-0.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners95.4%
Inst Owner Change1.71%
Ins Owners1.09%
Ins Owner Change-1.01%
Market Cap6.96B
Analysts80
Price Target105.06 (44.63%)
Short Float %2.51%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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)5.64%
PT rev (3m)5.64%
EPS NQ rev (1m)-9.48%
EPS NQ rev (3m)-19.54%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-2.66%
Revenue NQ rev (3m)-3.92%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 17.02 | ||
| P/S | 5.17 | ||
| P/FCF | 15.89 | ||
| P/OCF | 14.95 | ||
| P/B | 2.67 | ||
| P/tB | 4.17 | ||
| EV/EBITDA | 16.32 |
EPS(TTM)4.07
EY5.6%
EPS(NY)4.27
Fwd EY5.88%
FCF(TTM)4.57
FCFY6.29%
OCF(TTM)4.86
OCFY6.69%
SpS14.05
BVpS27.18
TBVpS17.4
PEG (NY)3.4
PEG (5Y)1.93
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 | 9.3 |
F-Score6
WACC11.12%
ROIC/WACC0.77
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 2Y5.99%
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 Year5.5%
Revenue Next 2Y5.03%
Revenue Next 3Y5.18%
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%