DOLBY LABORATORIES INC-CL A (DLB) Stock Fundamental Analysis
NYSE:DLB • US25659T1079
63.98 USD
-0.27 (-0.42%)
At close: Feb 20, 2026
63.98 USD
0 (0%)
After Hours: 2/20/2026, 8:04:00 PM
DLB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 276 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 decent growth rate and is not valued too expensively. Finally DLB also has an excellent dividend rating. These ratings could make DLB a good candidate for dividend investing.
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.
- In the past 5 years DLB has always been profitable.
- DLB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DLB's Return On Assets of 7.53% is fine compared to the rest of the industry. DLB outperforms 77.90% of its industry peers.
- DLB has a Return On Equity of 9.27%. This is in the better half of the industry: DLB outperforms 71.38% of its industry peers.
- DLB has a Return On Invested Capital of 8.23%. This is in the better half of the industry: DLB outperforms 79.71% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DLB is below the industry average of 10.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 9.27% | ||
| ROIC | 8.23% |
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
- DLB's Profit Margin of 17.97% is amongst the best of the industry. DLB outperforms 80.80% of its industry peers.
- DLB's Profit Margin has been stable in the last couple of years.
- DLB has a better Operating Margin (19.98%) than 85.51% of its industry peers.
- In the last couple of years the Operating Margin of DLB has grown nicely.
- DLB's Gross Margin of 87.86% is amongst the best of the industry. DLB outperforms 94.20% of its industry peers.
- DLB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.98% | ||
| PM (TTM) | 17.97% | ||
| GM | 87.86% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DLB is destroying value.
- DLB has about the same amout of shares outstanding than it did 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 8.36 indicates that DLB is not in any danger for bankruptcy at the moment.
- DLB has a Altman-Z score of 8.36. This is amongst the best in the industry. DLB outperforms 89.86% of its industry peers.
- 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 | 8.36 |
ROIC/WACC0.75
WACC11.01%
2.3 Liquidity
- DLB has a Current Ratio of 3.17. This indicates that DLB is financially healthy and has no problem in meeting its short term obligations.
- DLB has a Current ratio of 3.17. This is in the better half of the industry: DLB outperforms 76.09% 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 75.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
- DLB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.11%.
- DLB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.55% yearly.
- Looking at the last year, DLB shows a small growth in Revenue. The Revenue has grown by 1.80% in the last year.
- Measured over the past years, DLB shows a small growth in Revenue. The Revenue has been growing by 3.03% on average per year.
EPS 1Y (TTM)6.11%
EPS 3Y10.5%
EPS 5Y8.55%
EPS Q2Q%-7.02%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y2.47%
Revenue growth 5Y3.03%
Sales Q2Q%-2.88%
3.2 Future
- DLB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.48% yearly.
- DLB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.93% yearly.
EPS Next Y3.46%
EPS Next 2Y4.93%
EPS Next 3Y6.48%
EPS Next 5YN/A
Revenue Next Year5%
Revenue Next 2Y4.46%
Revenue Next 3Y4.93%
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 15.34, the valuation of DLB can be described as correct.
- DLB's Price/Earnings ratio is a bit cheaper when compared to the industry. DLB is cheaper than 78.99% of the companies in the same industry.
- When comparing the Price/Earnings ratio of DLB to the average of the S&P500 Index (26.99), we can say DLB is valued slightly cheaper.
- The Price/Forward Earnings ratio is 13.67, which indicates a correct valuation of DLB.
- 77.54% of the companies in the same industry are more expensive than DLB, based on the Price/Forward Earnings ratio.
- DLB is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 13.67 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DLB is valued a bit cheaper than 77.90% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DLB is valued a bit cheaper than 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.1 | ||
| EV/EBITDA | 15.38 |
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 decent profitability rating of DLB may justify a higher PE ratio.
PEG (NY)4.44
PEG (5Y)1.79
EPS Next 2Y4.93%
EPS Next 3Y6.48%
5. Dividend
5.1 Amount
- DLB has a Yearly Dividend Yield of 2.24%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.60, DLB pays a better dividend. On top of this DLB pays more dividend than 95.29% of the companies listed in the same industry.
- DLB's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
- On average, the dividend of DLB grows each year by 8.45%, which is quite nice.
- 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)8.45%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- DLB pays out 53.80% 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.
DP53.8%
EPS Next 2Y4.93%
EPS Next 3Y6.48%
63.98
-0.27 (-0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-29 2026-04-29
Inst Owners98.83%
Inst Owner Change-0.58%
Ins Owners1.26%
Ins Owner Change7%
Market Cap6.11B
Revenue(TTM)1.34B
Net Income(TTM)240.52M
Analysts80
Price Target89.58 (40.01%)
Short Float %5.62%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend1.33
Dividend Growth(5Y)8.45%
DP53.8%
Div Incr Years10
Div Non Decr Years10
Ex-Date02-10 2026-02-10 (0.36)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.87%
Min EPS beat(2)19.71%
Max EPS beat(2)40.03%
EPS beat(4)4
Avg EPS beat(4)18.19%
Min EPS beat(4)4.74%
Max EPS beat(4)40.03%
EPS beat(8)8
Avg EPS beat(8)14.94%
EPS beat(12)11
Avg EPS beat(12)15.41%
EPS beat(16)14
Avg EPS beat(16)15.04%
Revenue beat(2)1
Avg Revenue beat(2)1.53%
Min Revenue beat(2)-0.23%
Max Revenue beat(2)3.3%
Revenue beat(4)2
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)3.3%
Revenue beat(8)4
Avg Revenue beat(8)0.39%
Revenue beat(12)5
Avg Revenue beat(12)0.53%
Revenue beat(16)6
Avg Revenue beat(16)0.12%
PT rev (1m)-2.96%
PT rev (3m)-8.28%
EPS NQ rev (1m)-2.97%
EPS NQ rev (3m)-1.54%
EPS NY rev (1m)3%
EPS NY rev (3m)3%
Revenue NQ rev (1m)1.74%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 13.67 | ||
| P/S | 4.57 | ||
| P/FCF | 16.1 | ||
| P/OCF | 14.55 | ||
| P/B | 2.36 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 15.38 |
EPS(TTM)4.17
EY6.52%
EPS(NY)4.68
Fwd EY7.31%
FCF(TTM)3.97
FCFY6.21%
OCF(TTM)4.4
OCFY6.87%
SpS14.01
BVpS27.15
TBVpS17.79
PEG (NY)4.44
PEG (5Y)1.79
Graham Number50.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 9.27% | ||
| ROCE | 9.73% | ||
| ROIC | 8.23% | ||
| ROICexc | 10.75% | ||
| ROICexgc | 18.7% | ||
| OM | 19.98% | ||
| PM (TTM) | 17.97% | ||
| GM | 87.86% | ||
| FCFM | 28.36% |
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 | 45.24% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.67% | ||
| Profit Quality | 157.85% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.1 | ||
| Altman-Z | 8.36 |
F-Score7
WACC11.01%
ROIC/WACC0.75
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)6.11%
EPS 3Y10.5%
EPS 5Y8.55%
EPS Q2Q%-7.02%
EPS Next Y3.46%
EPS Next 2Y4.93%
EPS Next 3Y6.48%
EPS Next 5YN/A
Revenue 1Y (TTM)1.8%
Revenue growth 3Y2.47%
Revenue growth 5Y3.03%
Sales Q2Q%-2.88%
Revenue Next Year5%
Revenue Next 2Y4.46%
Revenue Next 3Y4.93%
Revenue Next 5YN/A
EBIT growth 1Y-3.6%
EBIT growth 3Y8.83%
EBIT growth 5Y4.89%
EBIT Next Year19.65%
EBIT Next 3Y11.28%
EBIT Next 5YN/A
FCF growth 1Y30.96%
FCF growth 3Y18.42%
FCF growth 5Y9.38%
OCF growth 1Y31.68%
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.
What is the valuation status for DLB stock?
ChartMill assigns a valuation rating of 5 / 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 expected EPS growth for DOLBY LABORATORIES INC-CL A (DLB) stock?
The Earnings per Share (EPS) of DOLBY LABORATORIES INC-CL A (DLB) is expected to grow by 3.46% in the next year.
Can you provide the dividend sustainability for DLB stock?
The dividend rating of DOLBY LABORATORIES INC-CL A (DLB) is 6 / 10 and the dividend payout ratio is 53.8%.