Dolby Stock Analysis (NYSE:DLB)
Dolby Analysis Video
View Dolby stock analysis video. This is our DLB analyst opinion covering the buy and sell arguments for DLB stock.
Dolby Laboratories, Inc. Stock Rating (3.3/5)
Our Dolby stock opinion is based on fundamentals of the company. This Dolby stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy DLB stock?
- Dolby had a healthy average operating margin of 22.6% over the last 4 quarters.
- LTM Net margins were good at 18.1% for Dolby.
- The company has an operating cash flow which is 3 times the net income.
- Dolby's return on invested capital of 14.1% is good.
- Dolby has a healthy FCF (Free Cash Flow) margin of 21.1%.
Should you sell DLB stock?
- Long term revenue growth of over the past 5 years has been disappointing.
- The DLB stock currently trades at a PE of 26.8, which is expensive, compared to the industry average of 20.
- The company is trading at a price to sales multiple of 4.8, which is overvalued in comparison to the Audio Video Home Products industry average multiple of 1.5.