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's average operating margin of 22.6% was exceptional.
- Net margins stood at a healthy 18.1% (average) for Dolby in the Trailing Twelve Months.
- The company has an operating cash flow which is 3 times the net income. We see this as a positive signal.
- Dolby's return on invested capital of 14.1% is good.
- The company has a healthy free cash flow margin of 21.1%.
Should you sell DLB stock?
- Over the last 5 years, the company registered a poor revenue growth of .
- DLB stock is trading at a PE ratio of 26.7, which is worse than the industry average multiple of 19.9.
- The company is trading at a price to sales multiple of 4.8, which is higher in comparison to the Audio Video Home Products industry average of 1.5, making DLB stock expensive.