Dolby Stock Analysis (NYSE:DLB)

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$50.43 $0.35 (0.69%) DLB stock closing price May 24, 2017 (Closing)
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Dolby
Updated on : May 24, 2017
previous close
DLB 50.4 (0%)
S&P 500 2404.4 (0%)
Closing Price On: May 24, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Audio Video Home Products
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
23%
Sector Average:
11.8%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$87.6M
Net Income:
$50.6M
Dividend Yield
DLB dividend yield:
1.03%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DLB PS :
4.9
Industry PS :
1.5
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
13.7%
Return on Equity:
9.8%
Free Cash Flow Margin:
22%
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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 Q2 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy DLB stock?

  • The TTM operating margin was good at 23% for Dolby.
  • Net margins came in at average 18.3% for Dolby over the last twelve months.
  • The operating cash flow looks good at 1.7 times the net income.
  • Dolby generates a high return on invested capital of 13.7%.
  • Dolby has a healthy FCF (Free Cash Flow) margin of 22%.

Should you sell DLB stock?

  • Trading at a PE ratio of 27.1, DLB stock is overvalued in comparison to industry average multiple of 21.1.
  • The company is trading at a price to sales multiple of 4.9, which is higher in comparison to the Audio Video Home Products industry average of 1.5, making DLB stock expensive.

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