DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
USA - NYSE:DLB - US25659T1079 - Common Stock
65.77 USD
+0.29 (+0.44%)
65.77 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes DLB very considerable for value and quality investing!
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.
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 8.27%, DLB belongs to the top of the industry, outperforming 82.92% of the companies in the same industry.
DLB has a Return On Equity of 10.15%. This is in the better half of the industry: DLB outperforms 78.65% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.51%, DLB belongs to the top of the industry, outperforming 81.49% 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 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
Looking at the Profit Margin, with a value of 19.62%, DLB belongs to the top of the industry, outperforming 83.63% 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 21.47%. This is amongst the best in the industry. DLB outperforms 87.54% of its industry peers.
DLB's Operating Margin has declined in the last couple of years.
DLB's Gross Margin of 88.52% is amongst the best of the industry. DLB outperforms 95.37% 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 | 21.47% | ||
| 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.
The number of shares outstanding for DLB has been reduced compared to 1 year ago.
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 8.59 indicates that DLB is not in any danger for bankruptcy at the moment.
The Altman-Z score of DLB (8.59) is better than 83.27% 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 | 8.59 |
ROIC/WACC0.78
WACC10.97%
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's Current ratio of 3.44 is amongst the best of the industry. DLB outperforms 80.43% 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 Quick ratio of 3.36. This is amongst the best in the industry. DLB outperforms 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.81% 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 9.26% on average per year.
DLB shows a small growth in Revenue. In the last year, the Revenue has grown by 6.94%.
The Revenue has been growing slightly by 0.51% on average over the past years.
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
DLB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.64% yearly.
The Revenue is expected to grow by 5.23% on average over the next years.
EPS Next Y5.25%
EPS Next 2Y5.99%
EPS Next 3Y6.93%
EPS Next 5Y7.64%
Revenue Next Year5.43%
Revenue Next 2Y4.92%
Revenue Next 3Y4.78%
Revenue Next 5Y5.23%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 correctly with a Price/Earnings ratio of 16.16.
Compared to the rest of the industry, the Price/Earnings ratio of DLB indicates a rather cheap valuation: DLB is cheaper than 81.14% of the companies listed in the same industry.
DLB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
DLB is valuated correctly with a Price/Forward Earnings ratio of 15.41.
Based on the Price/Forward Earnings ratio, DLB is valued cheaply inside the industry as 81.49% of the companies are valued more expensively.
DLB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 15.41 |
4.2 Price Multiples
84.34% of the companies in the same industry are more expensive than DLB, based on the Enterprise Value to EBITDA ratio.
DLB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DLB is cheaper than 87.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.39 | ||
| EV/EBITDA | 14.81 |
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 excellent profitability rating of DLB may justify a higher PE ratio.
PEG (NY)3.08
PEG (5Y)1.74
EPS Next 2Y5.99%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.03%, DLB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 41.10, DLB pays a better dividend. On top of this DLB pays more dividend than 95.02% of the companies listed in the same industry.
DLB's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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 2Y5.99%
EPS Next 3Y6.93%
65.77
+0.29 (+0.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.07%
Inst Owner Change0.65%
Ins Owners1.08%
Ins Owner Change-0.96%
Market Cap6.30B
Revenue(TTM)1.35B
Net Income(TTM)264.26M
Analysts78
Price Target97.67 (48.5%)
Short Float %3.61%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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)0%
PT rev (3m)-1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 15.41 | ||
| P/S | 4.68 | ||
| P/FCF | 14.39 | ||
| P/OCF | 13.54 | ||
| P/B | 2.42 | ||
| P/tB | 3.78 | ||
| EV/EBITDA | 14.81 |
EPS(TTM)4.07
EY6.19%
EPS(NY)4.27
Fwd EY6.49%
FCF(TTM)4.57
FCFY6.95%
OCF(TTM)4.86
OCFY7.39%
SpS14.05
BVpS27.18
TBVpS17.4
PEG (NY)3.08
PEG (5Y)1.74
Graham Number49.89
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%
ROICexgc growth 3Y-12.75%
ROICexgc 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 | 31.52% | ||
| Cap/Sales | 2.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 123.68% | ||
| Profit Quality | 165.77% | ||
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.36 | ||
| Altman-Z | 8.59 |
F-Score6
WACC10.97%
ROIC/WACC0.78
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)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 5Y7.64%
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 5Y5.23%
EBIT growth 1Y17.22%
EBIT growth 3Y-8.08%
EBIT growth 5Y-2.06%
EBIT Next Year26.84%
EBIT Next 3Y13.02%
EBIT Next 5Y12.17%
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%
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 7 / 10 to DOLBY LABORATORIES INC-CL A (DLB). This can be considered as Undervalued.
What is the profitability of DLB stock?
DOLBY LABORATORIES INC-CL A (DLB) has a profitability rating of 8 / 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 16.16 and the Price/Book (PB) ratio is 2.42.
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 46.78%.