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DLB

Dolby Laboratories NYSE:DLB Stock Report

Last Price

US$70.82

Market Cap

US$7.1b

7D

-6.8%

1Y

-29.9%

Updated

01 Jul, 2022

Data

Company Financials +
DLB fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends2/6

DLB Stock Overview

Dolby Laboratories, Inc. creates audio and imaging technologies that transform entertainment and communications at the cinema, DTV, transmissions and devices, mobile devices, OTT video and music services, and home entertainment 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$70.82
52 Week HighUS$104.25
52 Week LowUS$69.18
Beta0.99
1 Month Change-8.38%
3 Month Change-10.46%
1 Year Change-29.88%
3 Year Change8.90%
5 Year Change40.94%
Change since IPO191.44%

Recent News & Updates

Jun 17
Is It Time To Consider Buying Dolby Laboratories, Inc. (NYSE:DLB)?

Is It Time To Consider Buying Dolby Laboratories, Inc. (NYSE:DLB)?

While Dolby Laboratories, Inc. ( NYSE:DLB ) might not be the most widely known stock at the moment, it received a lot...

May 18
Dolby Laboratories (NYSE:DLB) Will Want To Turn Around Its Return Trends

Dolby Laboratories (NYSE:DLB) Will Want To Turn Around Its Return Trends

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...

Shareholder Returns

DLBUS SoftwareUS Market
7D-6.8%-4.7%-2.5%
1Y-29.9%-23.7%-21.2%

Return vs Industry: DLB underperformed the US Software industry which returned -23.6% over the past year.

Return vs Market: DLB underperformed the US Market which returned -21.7% over the past year.

Price Volatility

Is DLB's price volatile compared to industry and market?
DLB volatility
DLB Average Weekly Movement3.7%
Software Industry Average Movement11.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: DLB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DLB's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19652,368Kevin Yeamanhttps://www.dolby.com

Dolby Laboratories, Inc. creates audio and imaging technologies that transform entertainment and communications at the cinema, DTV, transmissions and devices, mobile devices, OTT video and music services, and home entertainment 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 various media devices; Dolby AC-4, an digital 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$7.15b
Earnings (TTM)US$215.55m
Revenue (TTM)US$1.26b

33.2x

P/E Ratio

5.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DLB income statement (TTM)
RevenueUS$1.26b
Cost of RevenueUS$130.57m
Gross ProfitUS$1.13b
Other ExpensesUS$911.72m
EarningsUS$215.55m

Last Reported Earnings

Apr 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.14
Gross Margin89.62%
Net Profit Margin17.14%
Debt/Equity Ratio0%

How did DLB perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

46%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is DLB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DLB?

Other financial metrics that can be useful for relative valuation.

DLB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.9x
Enterprise Value/EBITDA18.7x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does DLB's PE Ratio compare to its peers?

DLB PE Ratio vs Peers
The above table shows the PE ratio for DLB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average57.5x
MSP Datto Holding
132x0.5%US$5.8b
NLOK NortonLifeLock
15.2x8.7%US$12.7b
QLYS Qualys
52.4x12.5%US$5.0b
TDC Teradata
30.1x22.0%US$3.9b
DLB Dolby Laboratories
33.2x23.6%US$7.1b

Price-To-Earnings vs Peers: DLB is good value based on its Price-To-Earnings Ratio (33.2x) compared to the peer average (57.5x).


Price to Earnings Ratio vs Industry

How does DLB's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: DLB is good value based on its Price-To-Earnings Ratio (33.2x) compared to the US Software industry average (38.1x)


Price to Earnings Ratio vs Fair Ratio

What is DLB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DLB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.2x
Fair PE Ratio35.1x

Price-To-Earnings vs Fair Ratio: DLB is good value based on its Price-To-Earnings Ratio (33.2x) compared to the estimated Fair Price-To-Earnings Ratio (35.1x).


Share Price vs Fair Value

What is the Fair Price of DLB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DLB ($70.82) is trading below our estimate of fair value ($119.76)

Significantly Below Fair Value: DLB is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: DLB is poor value based on its PEG Ratio (1.4x)


Discover undervalued companies

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLB's forecast earnings growth (23.6% per year) is above the savings rate (1.9%).

Earnings vs Market: DLB's earnings (23.6% per year) are forecast to grow faster than the US market (13.6% per year).

High Growth Earnings: DLB's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DLB's revenue (8.8% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: DLB's revenue (8.8% 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 (17%).


Discover growth companies

Past Performance

How has Dolby Laboratories performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DLB has high quality earnings.

Growing Profit Margin: DLB's current net profit margins (17.1%) are lower than last year (24.8%).


Past Earnings Growth Analysis

Earnings Trend: DLB's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: DLB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DLB had negative earnings growth (-29.3%) over the past year, making it difficult to compare to the Software industry average (26.8%).


Return on Equity

High ROE: DLB's Return on Equity (8.3%) is considered low.


Discover strong past performing companies

Financial Health

How is Dolby Laboratories's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DLB's short term assets ($1.6B) exceed its short term liabilities ($281.0M).

Long Term Liabilities: DLB's short term assets ($1.6B) exceed its long term liabilities ($176.8M).


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


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.41%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DLB's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.61%).

High Dividend: DLB's dividend (1.41%) is low compared to the top 25% of dividend payers in the US market (4.3%).


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 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45.6%), DLB's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (32.2%), DLB's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

6.3yrs

Average management tenure


CEO

Kevin Yeaman (56 yo)

13.25yrs

Tenure

US$9,629,118

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD9.63M) is about average for companies of similar size in the US market ($USD8.30M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: DLB's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: DLB's board of directors are considered experienced (9.3 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
  • Implied Market Cap: US$7.145b
  • Shares outstanding: 100.89m
  • 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 Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/04/01
Annual Earnings2021/09/24


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.