NYSE:DLB

Stock Analysis Report

Dolby Laboratories

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.


Snowflake Analysis

Flawless balance sheet with proven 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.1%

DLB

12.0%

US Electronic

10.5%

US Market


1 Year Return

-14.3%

DLB

-18.0%

US Electronic

-11.5%

US Market

Return vs Industry: DLB exceeded the US Electronic industry which returned -18% over the past year.

Return vs Market: DLB underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

DLBIndustryMarket
7 Day9.1%12.0%10.5%
30 Day-17.9%-18.1%-15.4%
90 Day-21.3%-28.0%-21.4%
1 Year-13.3%-14.3%-17.2%-18.0%-9.6%-11.5%
3 Year6.5%2.9%0.6%-2.2%12.6%5.4%
5 Year49.6%41.4%25.9%19.6%32.8%18.1%

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?

22.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DLB ($53.94) is trading below our estimate of fair value ($65.61)

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 poor value based on its PE Ratio (26.5x) compared to the Electronic industry average (14.5x).

PE vs Market: DLB is poor value based on its PE Ratio (26.5x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: DLB is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: DLB is overvalued based on its PB Ratio (2.3x) compared to the US Electronic industry average (1.5x).


Next Steps

Future Growth

How is Dolby Laboratories forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLB's forecast earnings growth (10.7% per year) is above the savings rate (1.7%).

Earnings vs Market: DLB's earnings (10.7% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: DLB's revenue (5.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: DLB's revenue (5.4% 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 (14.2%).


Next Steps

Past Performance

How has Dolby Laboratories performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLB has high quality earnings.

Growing Profit Margin: DLB's current net profit margins (16.7%) are lower than last year (18.1%).


Past Earnings Growth Analysis

Earnings Trend: DLB's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: DLB's earnings growth over the past year (7.4%) exceeds its 5-year average (2.2% per year).

Earnings vs Industry: DLB earnings growth over the past year (7.4%) exceeded the Electronic industry 3.2%.


Return on Equity

High ROE: DLB's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Dolby Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: DLB's short term assets ($1.4B) exceed its short term liabilities ($293.5M).

Long Term Liabilities: DLB's short term assets ($1.4B) exceed its long term liabilities ($261.1M).


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

Inventory Level: DLB has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DLB's debt is covered by short term assets.


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DLB's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: DLB's dividend (1.63%) is low compared to the top 25% of dividend payers in the US market (5.45%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.3%), 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 (26.4% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Kevin Yeaman (53yo)

11s

Tenure

US$7,360,030

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD7.36M) is about average for companies of similar size in the US market ($USD7.47M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Yeaman
President11yrsUS$7.36m0.033% $1.8m
Lewis Chew
Executive VP & CFO7.75yrsUS$2.69m0.064% $3.5m
Andy Sherman
Executive VP9.17yrsUS$2.72m0.015% $833.3k
Todd Pendleton
Senior VP & Chief Marketing Officer1.67yrsUS$2.44mno data
Giles Baker
Senior Vice President of Consumer Entertainment3.42yrsUS$2.60m0.031% $1.7m
Ryan Nicholson
VP & Corporate Controller1yrno data0.0027% $148.1k
Jason Dea
Director of Corporate Finance & Investor Relationsno datano datano data
Craig Todd
CTO & Senior VPno datano datano data
Andrew Border
Vice President of Communications Business Groupno datano datano data
Linda Rogers
Senior Vice presidentof Human Resources3.17yrsno datano data

3.4yrs

Average Tenure

52yo

Average Age

Experienced Management: DLB's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Yeaman
President11yrsUS$7.36m0.033% $1.8m
Peter Gotcher
Independent Chairman9yrsUS$374.34k0.042% $2.3m
Avadis Tevanian
Independent Director11yrsUS$351.34k0.048% $2.6m
Roger Siboni
Independent Director15.67yrsUS$349.34k0.028% $1.5m
N. Jasper
Independent Director16.75yrsUS$309.34k0.012% $647.0k
Simon Segars
Independent Director5yrsUS$329.34k0.028% $1.5m
Micheline Chau
Independent Director7yrsUS$332.34k0.054% $2.9m
Anjali Sud
Independent Director0.83yrUS$181.00k0.0026% $139.4k
David Dolby
Director9yrsUS$314.34k23.95% $1.3b

9.0yrs

Average Tenure

59yo

Average Age

Experienced Board: DLB's board of directors are considered experienced (9.1 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$5.446b
  • Shares outstanding: 100.97m
  • Website: https://www.dolby.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FUODB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 2005
DLBNYSE (New York Stock Exchange)YesClass A Common StockUSUSDFeb 2005
FUOBRSE (Berne Stock Exchange)YesClass A Common StockCHCHFFeb 2005

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 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. In addition, the company designs and manufactures digital cinema servers, cinema processors, amplifiers, loudspeakers, hardware components, video conferencing solutions, and other products for the cinema, television, broadcast, and entertainment industries. Further, it offers various services to support theatrical and television production for cinema exhibition, broadcast, and home entertainment. The company serves film studios, content creators, post-production facilities, cinema operators, broadcasters, and video game designers. It sells its products directly to the end users, as well as through dealers and distributors worldwide. Dolby Laboratories, Inc. was founded in 1965 and is headquartered in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 00:30
End of Day Share Price2020/03/27 00:00
Earnings2019/12/27
Annual Earnings2019/09/27


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.