A Business at a Glance
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ITEM 1. BUSINESS Founded in 1965, we are in the business of improving entertainment experiences by inventing and innovating technologies that advance audio and video capture, transmission, and playback. We enable highly compelling experiences in movies and TV shows, music, sports and more by meeting the needs of content creators, distributors, and consumer electronics manufacturers. We have been at the forefront of multiple audio and video revolutions over the last sixty years including the transitions from mono to stereo then surround, analog to digital, and terrestrial broadcasting to streaming. Our strength and durability stem from our ability to combine our expertise in signal processing with our close relationships with artists and other industry experts to continually bring to the creative community technology that allows them to express themselves in new and compelling ways.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.3B | 1.3B | 1.3B | 1.3B | 1.3B | 1.3B |
| Net Income | 241M | 255M | 262M | 201M | 184M | 310M |
| EPS | $2.47 | $2.62 | $2.69 | $2.05 | $1.81 | $2.97 |
| Free Cash Flow | 386M | 436M | 297M | 337M | 271M | 393M |
| ROIC | 10.6% | 10.0% | 10.8% | 8.7% | 7.6% | 12.3% |
| Gross Margin | 87.9% | 70.8% | 75.1% | 68.5% | 67.0% | 72.5% |
| Debt/Equity | 0.00 | 0.23 | 0.25 | 0.26 | 0.20 | 0.19 |
| Dividends/Share | $1.34 | $1.32 | $1.23 | $1.11 | $1.02 | $0.91 |
| Operating Income | 247M | 265M | 258M | 216M | 207M | 344M |
| Operating Margin | 18.5% | 19.6% | 20.3% | 16.6% | 16.5% | 26.9% |
| ROE | 9.3% | 10.0% | 10.8% | 8.7% | 7.6% | 12.3% |
| Shares Outstanding | 97M | 97M | 97M | 98M | 102M | 104M |
Dolby Laboratories, Inc. passes 3 of 9 quality checks, indicating weak fundamentals.
Dolby Laboratories, Inc. trades at 25.1x trailing earnings, compared to its 15-year median P/E of 27.3x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 9.8x vs a median of 22.4x. The company's 5-year average ROIC is 9.9% with a gross margin of 70.8%. Total shareholder yield (dividends + buybacks) is 5.2%. At current prices, the estimated annualized return to fair value is +18.0%.
Dolby Laboratories, Inc. (DLB) has a current P/E ratio of 25.1, compared to its historical median P/E of 27.3. The stock is currently considered Fair based on its historical valuation range.
Dolby Laboratories, Inc. (DLB) has a 5-year average return on invested capital (ROIC) of 9.9%. This is below average and may indicate limited pricing power.
Dolby Laboratories, Inc. (DLB) has a market capitalization of $6.0B. It is classified as a mid-cap stock.
Yes, Dolby Laboratories, Inc. (DLB) pays a dividend with a trailing twelve-month yield of 2.16%. The company also returns capital through share buybacks, with a buyback yield of 3.01%.
Based on historical P/E analysis, Dolby Laboratories, Inc. (DLB) appears fair. The current P/E of 25.1 is 8% below its historical median of 27.3. The estimated fair value CAGR (P/E method) is 7.9%.
Dolby Laboratories, Inc. (DLB) operates in the Patent Owners & Lessors industry, within the Financials sector.
Dolby Laboratories, Inc. (DLB) reported annual revenue of $1.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Dolby Laboratories, Inc. (DLB) has a net profit margin of 18.9%. This is a healthy margin.
Dolby Laboratories, Inc. (DLB) generated $436 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Dolby Laboratories, Inc. (DLB) has a debt-to-equity ratio of 0.23. This indicates a conservatively financed balance sheet.
Dolby Laboratories, Inc. (DLB) reported earnings per share (EPS) of $2.62 in its most recent fiscal year.
Dolby Laboratories, Inc. (DLB) has a return on equity (ROE) of 10.0%. This indicates moderate shareholder returns.
Dolby Laboratories, Inc. (DLB) has a 5-year average gross margin of 70.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for Dolby Laboratories, Inc. (DLB), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Dolby Laboratories, Inc. (DLB) has a book value per share of $26.94, based on its most recent annual SEC filing.