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DLB

Dolby LaboratoriesNYSE:DLB Stock Report

Market Cap

US$9.4b

7D

-0.9%

1Y

42.3%

Updated

26 Sep, 2021

Data

Company Financials +
DLB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends2/6

DLB Overview

Dolby Laboratories, Inc. creates audio and imaging technologies that transform entertainment and communications at the cinema, at home, at work, and on mobile devices.

Dolby Laboratories Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Dolby Laboratories
Historical stock prices
Current Share PriceUS$92.47
52 Week HighUS$64.07
52 Week LowUS$104.74
Beta0.96
1 Month Change-7.53%
3 Month Change-7.57%
1 Year Change42.28%
3 Year Change32.16%
5 Year Change70.33%
Change since IPO280.53%

Recent News & Updates

Sep 15
Calculating The Intrinsic Value Of Dolby Laboratories, Inc. (NYSE:DLB)

Calculating The Intrinsic Value Of Dolby Laboratories, Inc. (NYSE:DLB)

Does the September share price for Dolby Laboratories, Inc. ( NYSE:DLB ) reflect what it's really worth? Today, we will...

Sep 02
Should You Be Adding Dolby Laboratories (NYSE:DLB) To Your Watchlist Today?

Should You Be Adding Dolby Laboratories (NYSE:DLB) To Your Watchlist Today?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

DLBUS SoftwareUS Market
7D-0.9%0.5%0.1%
1Y42.3%38.7%35.3%

Return vs Industry: DLB exceeded the US Software industry which returned 38.7% over the past year.

Return vs Market: DLB exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is DLB's price volatile compared to industry and market?
DLB volatility
DLB Beta0.96
Industry Beta0.95
Market Beta1

Stable Share Price: DLB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DLB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19652,289Kevin Yeamanhttps://www.dolby.com

Dolby Laboratories, Inc. creates audio and imaging technologies that transform entertainment and communications at the cinema, at home, at work, and on mobile devices. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications.; AVC, a digital video codec with high bandwidth efficiency used in media devices; Dolby AC-4, an audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for cinema and a range of media devices. Its audio technologies also include Dolby Digital, a digital audio coding technology that provides multichannel sound to applications; Dolby Digital Plus, a digital audio coding technology that offers audio transmission for a range of media applications and devices; Dolby TrueHD, a digital audio coding technology providing encoding for media application; Dolby Vision, an imaging technology for cinema and media devices; Dolby Voice, an audio conferencing technology; and HEVC, a digital video codec with high bandwidth efficiency to support for media devices.

Dolby Laboratories Fundamentals Summary

How do Dolby Laboratories's earnings and revenue compare to its market cap?
DLB fundamental statistics
Market CapUS$9.38b
Earnings (TTM)US$292.87m
Revenue (TTM)US$1.27b

32.0x

P/E Ratio

7.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DLB income statement (TTM)
RevenueUS$1.27b
Cost of RevenueUS$141.79m
Gross ProfitUS$1.13b
ExpensesUS$832.77m
EarningsUS$292.87m

Last Reported Earnings

Jun 25, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.89
Gross Margin88.81%
Net Profit Margin23.11%
Debt/Equity Ratio0%

How did DLB perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

30%

Payout Ratio

Valuation

Is Dolby Laboratories undervalued compared to its fair value and its price relative to the market?

14.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DLB ($92.47) is trading below our estimate of fair value ($108.65)

Significantly Below Fair Value: DLB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DLB is good value based on its PE Ratio (32x) compared to the US Software industry average (59.8x).

PE vs Market: DLB is poor value based on its PE Ratio (32x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: DLB is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: DLB is good value based on its PB Ratio (3.6x) compared to the US Software industry average (7.9x).


Future Growth

How is Dolby Laboratories forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLB's forecast earnings growth (8.1% per year) is above the savings rate (2%).

Earnings vs Market: DLB's earnings (8.1% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: DLB's earnings are forecast to grow, but not significantly.

Revenue vs Market: DLB's revenue (6.2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: DLB's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DLB's Return on Equity is forecast to be low in 3 years time (15.6%).


Past Performance

How has Dolby Laboratories performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLB has high quality earnings.

Growing Profit Margin: DLB's current net profit margins (23.1%) are higher than last year (20.9%).


Past Earnings Growth Analysis

Earnings Trend: DLB's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: DLB's earnings growth over the past year (18%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: DLB earnings growth over the past year (18%) underperformed the Software industry 22.1%.


Return on Equity

High ROE: DLB's Return on Equity (11.4%) is considered low.


Financial Health

How is Dolby Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: DLB's short term assets ($1.8B) exceed its short term liabilities ($309.0M).

Long Term Liabilities: DLB's short term assets ($1.8B) exceed its long term liabilities ($198.4M).


Debt to Equity History and Analysis

Debt Level: DLB is debt free.

Reducing Debt: DLB has not had any debt for past 5 years.

Debt Coverage: DLB has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DLB has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Dolby Laboratories's current dividend yield, its reliability and sustainability?

0.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DLB's dividend (0.95%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: DLB's dividend (0.95%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DLB has been paying a dividend for less than 10 years.

Growing Dividend: DLB's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.3%), DLB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DLB's dividends in 3 years are forecast to be well covered by earnings (24.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Kevin Yeaman (55 yo)

12.5yrs

Tenure

US$7,868,836

Compensation

Mr. Kevin J. Yeaman has been the Chief Executive Officer, President and Director of Dolby Laboratories, Inc. since March 28, 2009. Mr. Yeaman served as the Chief Financial Officer of Dolby Laboratories Inc...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD7.87M) is about average for companies of similar size in the US market ($USD6.40M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DLB's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: DLB's board of directors are considered experienced (9.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DLB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dolby Laboratories, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Dolby Laboratories, Inc.
  • Ticker: DLB
  • Exchange: NYSE
  • Founded: 1965
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$9.375b
  • Shares outstanding: 101.39m
  • Website: https://www.dolby.com

Number of Employees


Location

  • Dolby Laboratories, Inc.
  • 1275 Market Street
  • San Francisco
  • California
  • 94103-1410
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:07
End of Day Share Price2021/09/24 00:00
Earnings2021/06/25
Annual Earnings2020/09/25


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.