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Dolby Laboratories

Market Cap

US$10.3b

Last Updated

2021/04/20 22:27 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Dolby Laboratories's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

-1.3%

DLB

-1.0%

US Electronic

-0.8%

US Market


1 Year Return

83.2%

DLB

92.5%

US Electronic

58.4%

US Market

Return vs Industry: DLB underperformed the US Electronic industry which returned 87.8% over the past year.

Return vs Market: DLB exceeded the US Market which returned 55% over the past year.


Shareholder returns

DLBIndustryMarket
7 Day-1.3%-1.0%-0.8%
30 Day0.4%3.5%3.1%
90 Day4.7%4.6%4.2%
1 Year85.5%83.2%96.2%92.5%61.1%58.4%
3 Year56.7%51.2%70.5%63.5%66.0%55.4%
5 Year147.2%133.5%165.2%148.6%120.8%96.1%

Long-Term Price Volatility Vs. Market

How volatile is Dolby Laboratories's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

31.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DLB ($99.61) is trading above our estimate of fair value ($73.03)

Significantly Below Fair Value: DLB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DLB is poor value based on its PE Ratio (31.5x) compared to the US Electronic industry average (28.7x).

PE vs Market: DLB is poor value based on its PE Ratio (31.5x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: DLB is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: DLB is overvalued based on its PB Ratio (3.9x) compared to the US Electronic industry average (2.7x).


Future Growth

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

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLB's forecast earnings growth (7.4% per year) is above the savings rate (2%).

Earnings vs Market: DLB's earnings (7.4% per year) are forecast to grow slower than the US market (17.8% per year).

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

Revenue vs Market: DLB's revenue (5.5% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: DLB's revenue (5.5% 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 (15.1%).


Past Performance

How has Dolby Laboratories performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLB has high quality earnings.

Growing Profit Margin: DLB's current net profit margins (25.2%) are higher than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: DLB's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: DLB's earnings growth over the past year (54.1%) exceeds its 5-year average (8.4% per year).

Earnings vs Industry: DLB earnings growth over the past year (54.1%) exceeded the Electronic industry -6.4%.


Return on Equity

High ROE: DLB's Return on Equity (12.7%) is considered low.


Financial Health

How is Dolby Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: DLB's short term assets ($1.7B) exceed its short term liabilities ($316.4M).

Long Term Liabilities: DLB's short term assets ($1.7B) exceed its long term liabilities ($209.2M).


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?

0.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DLB's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: DLB's dividend (0.88%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.9%), 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 (23.9% payout ratio).


Next Steps

Management

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

6.7yrs

Average management tenure


CEO

Kevin Yeaman (54 yo)

12.08yrs

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 ($USD7.87M) is about average for companies of similar size in the US market ($USD11.18M).

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 seasoned and experienced (6.7 years average tenure).


Board Members

Experienced Board: DLB's board of directors are considered experienced (9.2 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dolby Laboratories, Inc.
  • Ticker: DLB
  • Exchange: NYSE
  • Founded: 1965
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$10.284b
  • Shares outstanding: 101.61m
  • Website: https://www.dolby.com

Number of Employees


Location

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

Listings


Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/20 22:27
End of Day Share Price2021/04/20 00:00
Earnings2020/12/25
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.