Fact based stock research
Dolby Laboratories (NYSE:DLB)

US25659T1079

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Dolby Laboratories stock research in summary

dolby.com

ANALYSIS: With an Obermatt Combined Rank of 70 (better than 70% compared with investment alternatives), Dolby Laboratories (Systems Software, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Dolby Laboratories are a good value (attractively priced) with a consolidated Value Rank of 61 (better than 61% of alternatives), are safely financed (Safety Rank of 93, which means low debt burdens), but show below-average growth (Growth Rank of 33). ...read more

RECOMMENDATION: A Combined Rank of 70, is a buy recommendation based on Dolby Laboratories's financial characteristics. As the company Dolby Laboratories's key financial metrics exhibit good value (Obermatt Value Rank of 61) but low growth (Obermatt Growth Rank of 33) while being safely financed (Obermatt Safety Rank of 93), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 61% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	USA
Industry	Systems Software
Index
Size class	Large

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Research History: Dolby Laboratories

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	11	65	54	n/a
GROWTH
GROWTH	53	27	43	n/a
SAFETY
SAFETY	100	97	100	n/a
SENTIMENT
SENTIMENT	n/a	97	58	^new
360° VIEW
360° VIEW	n/a	91	86	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Dolby Laboratories is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	11	65	54	n/a
GROWTH
GROWTH	53	27	43	n/a
SAFETY
SAFETY	100	97	100	n/a
COMBINED
COMBINED	69	69	87	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Dolby Laboratories the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 61 (better than 61% compared with alternatives), Dolby Laboratories shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Dolby Laboratories. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 51 which means that the stock price compared with what market professionals expect for future profits is lower than for 51% of comparable companies, indicating a good value concerning Dolby Laboratories's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 54, and for Dividend Yield with a Dividend Yield Rank of 60. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 61% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 39). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 61, is a buy recommendation based on Dolby Laboratories's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Dolby Laboratories has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Dolby Laboratories shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	69	53	39	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	19	54	51	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	12	51	49	n/a
DIVIDEND YIELD
DIVIDEND YIELD	10	55	57	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	11	65	54	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Dolby Laboratories; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 33 (better than 33% compared with alternatives), Dolby Laboratories shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Dolby Laboratories. Sales Growth has a below market rank of 38, which means that, currently, professionals expect the company to grow less than 62% of its competitors. The same is valid for Capital Growth, with a rank of 30, and Profit Growth, with a rank of 39. Currently, professionals expect the company to grow its profits less than 61% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 51, which means that the stock returns have recently been above 51% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 33, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Dolby Laboratories, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	29	33	37	n/a
PROFIT GROWTH
PROFIT GROWTH	100	36	43	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	44	39	n/a
STOCK RETURNS
STOCK RETURNS	72	31	59	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	53	27	43	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Dolby Laboratories.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 93 (better than 93% compared with alternatives) for 2024, the company Dolby Laboratories has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Dolby Laboratories is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Dolby Laboratories.Leverage is at 100, meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors.Refinancing is at a rank of 84, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 84% of its competitors. Liquidity is at 1, meaning that the company generates less profit to service its debt than 99% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 93 (better than 93% compared with alternatives), Dolby Laboratories has a financing structure that is significantly safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Dolby Laboratories more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	96	100	100	n/a
REFINANCING
REFINANCING	88	75	86	n/a
LIQUIDITY
LIQUIDITY	89	97	98	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	97	100	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Dolby Laboratories and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	90	41	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	17	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	87	71	^new
MARKET PULSE
MARKET PULSE	n/a	96	95	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	97	58	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Dolby Laboratories.
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