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 (3.7/5)
Our Dolby stock opinion is based on fundamentals of the company. This Dolby stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy DLB stock?
- Dolby's revenue growth came in at 19.8% in 2016 Q3.
- Dolby's average operating margin of 23.4% was exceptional.
- Net margins came in at average 20.2% for Dolby over the last twelve months.
- The company has an operating cash flow which is 2 times the net income.
- Dolby generates a high return on invested capital of 14.6%.
- The company has a good Free Cash Flow (FCF) margin of 35.7%.
Should you sell DLB stock?
- Long term revenue growth of 0.6% over the past 5 years has been disappointing.
- DLB stock is trading at a PE ratio of 26.1, which is worse than the industry average multiple of 19.3.
- The company is trading at a price to sales multiple of 4.7, which is overvalued in comparison to the Audio Video Home Products industry average multiple of 1.3.