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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Dolby Laboratories, Inc. (XNYS:DLB) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
DLB
Name:
DOLBY LABORATORIES, INC. (XNYS:DLB)
Sector:
5.78M
Industry:
Information Technology Services
CEO:
Mr. Kevin Yeaman
Total Employees:
2,368
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -93.89% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF DOLBY LABORATORIES, INC.(DLB) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND INFORMATION TECHNOLOGY SERVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
72.86
One Month Price Target:
$73.26
Six Month Price Target :
$75.25
Likely Price in One Year's Time:
Ticker:
$77.64
Likely Trading Range Today Under (Normal Volatility)
$72.63
Price Upper limit ($) :
$73.14
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$69.81
This week:
$66.05
This month :
$59.23
Other Primary facts
Market Cap:
7.05B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
97.68M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
15.35%
-14.12%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$87.00
$80.52
$58.72
$65.20
Medium risk (<10%) entry points
Buy Call
Sell Call
$78.41
Buy Put:
Sell Put:
$77.03
$67.29
$68.69
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
DLB
Sharpe Ratio:
1.15%
Comparison:
DLB, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -36.59% lower than the industry
& is -49.58% lower than the market/S&P 500 average
Average Returns/Yield of
DLB
Daily returns:
0.03%
Weekly returns:
0.16%
Monthly returns:
0.65%
Yearly returns:
14.44%
Comparison of returns:
Average annual returns/yield (last 3 years) is -46.08% below industry average
Classification:
DLB, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.92
Statistical test of Returns:
DLB has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.05%
Weekly Volatility:
4.59%
Monthly Volatility:
9.18%
Yearly Volatility:
31.79%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.53%
Volatility in last five trading days has been -74.13% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.18%
Weekly VaR:
-9.35%
Monthly VaR:
-18.70%
How Much Can the price of
DLB
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-16%
Worst case (decline):
-64.79%
This translates to price declining to:
$61.08
This translates to price declining to:
$25.65
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
DLB is a 32.00% riskier investment compared to the market/S&P 500 & is 13.09% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -32.36% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
DLB
Beta in relation to market/S&P 500--0.98
Expected beta in 1 year's time:
0.828
Expected beta in 3 year's time:
1.17
Unlevered (debt free) Beta:
0.958
Beta in relation to Nasdaq (XNAS):
0.793
Beta in relation to all global stocks::
0.701
Beta Comparison & Analysis
Beta of competitors/peers::
1.033
Beta is -5.54% lower than peers
Average Industry Beta:
1.209
Beta is -19.28% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
6.12%
Sustainable growth rate is -95.89% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.020
Alpha is -168.18% below industry average alpha yield
Alpha is -130% below the market average
Analysis of Cost of Capital of
DLB
Equity cost of capital:
0.098
Equity cost of capital is -13.97% below industry mean WACC
Unlevered (without debt) cost of capital:
9.66%
Before-tax cost of debt:
0.59%
After-tax cost of debt:
0.46%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
0.46%
WACC is 14.97% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$12.88
Revenue growth rate per share of (3Y):
2.69
Annual revenue growth rate is 30.73% above the industry average
EPS:
$2.07
Expected Annual growth rate of EPS (3Y):
-0.94%
Expected future EPS growth rate is -127.66% lower than the Information Technology Services industry
Free cash flow (FCF) per share:
$3.13
Balance sheet equity growth per share: 37.71%
Equity growth rate per share is 20.28% higher than the industry
Debt per share
$0.54
EBITDA per share
$3.65
Valuation Analysis Today of
DLB
P/E Ratio:
37.63
P/E Ratio of Competitors/Peers:
9.37
P/E ratio is 301.40% higher than main peers & is -20.73% lower than the industry
Stock price/value with industry average P/E ratio: $98.26
DLB is -25.85% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $23.21
Present value of the expected future dividends only: $11.60
P/S (Price to Sales ratio):
5.66
Price to sales ratio is 54.93% above the industry mean
P/B (Price to book value ratio):
2.69
Price to free cash flow: 23.30
Price to free cash flow ratio is 9.28% higher than the industry
Net income growth rate (3Y):
659.19%
Net income growth rate is -99.17% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 11.73%
Dividend yeild: 1.33%
Previous Dividend: $0.25
Previous adjusted dividend: $0.25
Previous Dividend: $0.97
Expected next dividend best case: $0.26
Expected next dividend worst case: $0.24
Average dividend payment (long-term): $0.23
Average dividend increase/decrease (growth rate) % per period: 1.36%
Expected next dividend payment date: 23/08/2022
Expected next dividend record date: 15/08/2022
Expected next dividend declaration date: 08/03/2022
Previous dividend payment date: 25/05/2022
Previous dividend record date: 17/05/2022
Previous dividend declaration date: 05/05/2022
Dividend History:
2022-05-16--$0.25
2021-11-29--$0.25
2021-05-14--$0.22
2022-02-15--$0.25
2021-08-10--$0.22
2021-02-08--$0.22
Dividend growth rate is -118.89% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
1.99%
Net debt to equity ratio:
-37.48%
Debt to assets ratio:
1.69%
Net debt to assets ratio:
-31.84%
Debt-to-asset ratio is -97.33% below industry average
Ability to repay debt:
Interest coverage ratio:
896.6
Interest coverage ratio is 2046.01% more than industry average
Looking forward:
Debt growth rate:
-11.12%
Annual debt growth is -287% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.746
Statistical significance of correlation:
DLB has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.596
Stock price is 25.12% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.596
Correlation of price movement with Nasdaq (^IXIC):
-0.012
Covariance of price movement with the market:
-0.014
Kurtosis
12.371
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
-0.175
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
DLB
Gross Profit Margin Ratio:
358%
Operating Profit Margin Ratio:
18.32%
Operating profit margin is -363.80% lower than the industry
Net Profit Margin Ratio:
358%
Effective Tax Rate:
9.18%
Effective tax rate is -65.24% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
8.17%
Return on equity (ROE) is -85.47% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
6.94%
Return on assets (ROA) is 8032.27% higher than the industry
Financial Leverage:
1.0x
Current Ratio:
5.98
Current ratio is 158.42% above industry average
Cash Conversion Cycle (days):
92.1
Cash conversion cycle is 145.60% above industry average
The remaining useful life of property plant & equipment is: 11.0 years
Stock based compensation to net income ratio:
15.15%
In-depth Efficiency Analysis
Revenue generated per employee:
531.2K
Each employee generates 26% more revenue than industry average revenue per employee
EBITDA generated per employee:
150.7K
Each employee generates 236% more EBITDA than industry average revenue per employee
Profit generated per employee:
91.0K
Each employee generates 969% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
2.4K
Each employee generates -137% less free cash flow than industry average revenue per employee
Assets/Capital per employee
595.3K
Each employee generates -137% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 6.11%
Growth rate in R&D investment/expenditure is -80.52% lower than the industry
Competitors/Peer firms of
DLB
CABLE ONE, INC. (XNYS:CABO)
PEARSON PLC (XNYS:PSO)
AUTOHOME INC. (XNYS:ATHM)
Mobile TeleSystems Public Joint Stock Company (XNYS:MBT)
Grupo Televisa SAB (XNYS:TV)
FIVERR INTERNATIONAL LTD (XNYS:FVRR)
THE INTERPUBLIC GROUP OF COMPANIES, INC. (XNYS:IPG)
KT CORPORATION (XNYS:KT)
SKILLZ INC. (XNYS:SKLZ)
Current Analyst Ratings
Strong buy�13%
Buy�8%
Hold�8%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
4/1/22
Revenue:
1.26B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
130.57M
1.13B
260.31M
271.45M
632.03M
360.58M
-
892.33M
3.37M
398.00K
119.14M
356.85M
230.39M
215.55M
237.08M
21.76M
215.55M
Statement of Cash Flow
Date:
Period:
27.42M
Differed Income Tax :
- 9004.00K
Stock Based Compensation :
32.66M
Change in Working Capital :
- 100935.00K
Accounts Receivables:
- 9965.00K
Other Working Capital:
4.79M
Other Non-Cash Items:
1.51M
Net Cash Provided by Operating Activities:
31.66M
Investments in PP&E:
- 14452.00K
Net Acquisitions:
-
Purchases of Investments:
- 113147.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
12/31/21
2022
Q1
1.06B
80.62M
1.14B
468.26M
13.14M
76.44M
1.70B
596.85M
-
-
120.99M
164.91M
61.33M
1.41B
-
3.10B
19.10M
15.31M
1.60M
21.43M
227.45M
283.29M
52.62M
102.38M
179.11M
-
462.40M
100.00K
2.65B
- 11521.0K
-
December 31, 2021 at 12:00:00 AM
1.02B
2.64B
3.10B
201.61M
67.93M
- 988759.0K
12.91M
- 11426.00K
- 126111.00K
-
21.37M
- 67493.00K
- 25283.00K
- 1435.00K
- 72839.00K
- 1310.00K
- 168600.00K
1.06B
1.23B
31.66M
- 25878.00K
5.78M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
DLB
2023
2024
2025
2026
2027
$72.62
$77.38
$82.46
$87.86
$93.62