Dolby Stock Analysis (NYSE:DLB)

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$49 $0.15 (0.31%) DLB stock closing price Jan 20, 2017 (Closing)
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Dolby
Updated on : Jan 20, 2017
previous close
DLB 49 (0%)
S&P 500 2271.3 (0%)
Closing Price On: Jan 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Audio Video Home Products
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
1.4%
Operating Profit
Operating Margin:
22.6%
Sector Average:
11.1%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$72.9M
Net Income:
$23.9M
Dividend Yield
DLB dividend yield:
0.98%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
FCF Margin
Long Term Growth
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DLB PS :
4.8
Industry PS :
1.5
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
14.1%
Return on Equity:
9.9%
Free Cash Flow Margin:
21.1%
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Dolby Analysis Video

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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.

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