Dolby Stock Analysis, Valuation (NYSE:DLB)

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$62.32 $1.22 (1.92%) DLB stock closing price Feb 21, 2018 (Closing)
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Dolby
Updated on : Feb 20, 2018
previous close
DLB 63.5 (0%)
S&P 500 2716.3 (0%)
Closing Price On: Feb 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Audio Video Home Products
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
3.7%
Operating Profit
Operating Margin:
24%
Sector Average:
11%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$17.2M
Net Income:
-$81.6M
Dividend Yield
DLB dividend yield:
0.91%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DLB PS :
5.9
Industry PS :
1.6
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.7%
Return on Equity:
3.2%
Free Cash Flow Margin:
-0.7%
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Dolby Stock Analysis

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View the Dolby stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for DLB stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Dolby Laboratories, Inc. Stock Rating 3.3/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for DLB stock analysis. Dolby valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Dolby stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy DLB stock?

  • The Year Over Year (YoY) revenue growth for Dolby was 8.1% in 2018 Q1.
  • The company saw a significant growth in revenue with a 5 year CAGR of 3.7%.
  • Dolby had a healthy average operating margin of 24% over the last 4 quarters.
  • Net margins came in at average 6.1% for Dolby over the last twelve months.

Should you sell DLB stock?

  • DLB stock is trading at a PS multiple of 5.9, which is a negative when compared to the Audio Video Home Products industry average multiple of 1.6.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -0.7%.

Comments on this video and Dolby stock

Investors can use Amigobulls Dolby stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, Dolby revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.