DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DLB - US25659T1079 - Common Stock
67 USD
+0.93 (+1.41%)
67 USD
0 (0%)
Overall DLB gets a fundamental rating of 7 out of 10. We evaluated DLB against 280 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 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.
Each year in the past 5 years DLB has been profitable.
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 7.90%, DLB is in the better half of the industry, outperforming 79.79% of the companies in the same industry.
DLB has a better Return On Equity (9.72%) than 74.47% of its industry peers.
DLB's Return On Invested Capital of 8.48% is amongst the best of the industry. DLB outperforms 80.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLB is below the industry average of 10.97%.
| 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
Looking at the Profit Margin, with a value of 18.90%, DLB belongs to the top of the industry, outperforming 82.98% of the companies in the same industry.
DLB's Profit Margin has been stable in the last couple of years.
DLB has a Operating Margin of 20.75%. This is amongst the best in the industry. DLB outperforms 86.88% of its industry peers.
DLB's Operating Margin has improved in the last couple of years.
DLB has a better Gross Margin (88.13%) than 95.39% of its industry peers.
DLB's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DLB is destroying value.
DLB has about the same amout of shares outstanding than it did 1 year ago.
DLB has less shares outstanding than it did 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
DLB has an Altman-Z score of 8.54. This indicates that DLB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.54, DLB belongs to the top of the industry, outperforming 84.04% 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 | 8.54 |
ROIC/WACC0.78
WACC10.91%
2.3 Liquidity
A Current Ratio of 3.17 indicates that DLB has no problem at all paying its short term obligations.
DLB's Current ratio of 3.17 is fine compared to the rest of the industry. DLB outperforms 76.95% 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.
The Quick ratio of DLB (3.10) is better than 76.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.84% over the past year.
Measured over the past years, DLB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.55% on average per year.
DLB shows a small growth in Revenue. In the last year, the Revenue has grown by 5.92%.
The Revenue has been growing slightly by 3.03% on average over the past years.
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
Based on estimates for the next years, DLB will show a small growth in Earnings Per Share. The EPS will grow by 5.99% on average per year.
DLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.88% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 15.76 indicates a correct valuation of DLB.
Based on the Price/Earnings ratio, DLB is valued cheaper than 81.56% of the companies in the same industry.
DLB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.49.
DLB is valuated correctly with a Price/Forward Earnings ratio of 15.69.
DLB's Price/Forward Earnings ratio is rather cheap when compared to the industry. DLB is cheaper than 80.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, DLB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLB is valued cheaper than 84.40% of the companies in the same industry.
87.23% 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 | 14.87 | ||
| EV/EBITDA | 15.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DLB does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of DLB may justify a higher PE ratio.
PEG (NY)35.38
PEG (5Y)1.84
EPS Next 2Y3.53%
EPS Next 3Y5.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.18%, DLB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 60.83, DLB pays a better dividend. On top of this DLB pays more dividend than 95.39% of the companies listed in the same industry.
DLB's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| 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 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)8.45%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
DLB pays out 49.64% 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.
DP49.64%
EPS Next 2Y3.53%
EPS Next 3Y5.99%
67
+0.93 (+1.41%)
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 Change-1.62%
Market Cap6.40B
Revenue(TTM)1.35B
Net Income(TTM)255.02M
Analysts82
Price Target92.31 (37.78%)
Short Float %4.42%
Short Ratio4.75
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)-12.14%
EPS NQ rev (1m)-22.87%
EPS NQ rev (3m)-22.87%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-9.51%
Revenue NQ rev (3m)-9.35%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 15.69 | ||
| P/S | 4.74 | ||
| P/FCF | 14.87 | ||
| P/OCF | 13.55 | ||
| P/B | 2.44 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 15.49 |
EPS(TTM)4.25
EY6.34%
EPS(NY)4.27
Fwd EY6.37%
FCF(TTM)4.5
FCFY6.72%
OCF(TTM)4.94
OCFY7.38%
SpS14.13
BVpS27.46
TBVpS17.75
PEG (NY)35.38
PEG (5Y)1.84
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 | 8.54 |
F-Score7
WACC10.91%
ROIC/WACC0.78
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 15.76 and the Price/Book (PB) ratio is 2.44.
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%.