Dolby Laboratories

DLB

Information Technology Services · Technology

Price

$49.07

-0.92 (-1.84%)

Market Cap

$4.69B

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count falling — buybacks

−6.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 104.6M (2021) → 97.5M (2025)

Dolby Laboratories makes audio and video technology that improves how sound and pictures look and feel in movies, music, and games. Its most well-known products are Dolby Atmos (surround sound) and Dolby Vision (high-quality picture), which are used by movie studios, streaming services like Netflix and Apple TV+, smartphone makers, and TV manufacturers. Dolby is one of the most recognized audio brands in the world and has been licensing its technology to Hollywood studios for decades.

Dolby makes most of its money by charging licensing fees when device makers — like Samsung or Sony — include Dolby technology in their products, such as TVs, phones, and laptops. The company operates globally, with a significant portion of revenue coming from Asia-Pacific markets where consumer electronics are manufactured. Its main competitive advantage is its deep library of patents and long-term contracts with major studios and hardware makers, though a key risk is that streaming platforms and device makers could develop competing audio and video standards of their own.

Winston Score History

Politician Trades

3 trades / 12mo

1 Congressional buy and 2 sells on DLB in the last 12 months.

Unlock the full Smart Money Map — every trade plotted on the price chart with politicians, amounts and returns since each trade. Founder's Deal is $57/mo locked for life.

Unlock politician trades

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+7.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+5.3% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$262M/ year

→ Flat (-1% vs prior year)

19.4% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

1.3%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$594M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Dolby Laboratories is growing revenue at 7% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

88.7%

Premium pricing power — 88.7% gross margin

Operating Margin

29.1%

Excellent — 29.1% operating margin

ROCE

4.4%

Weak — 4.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

+6.4%

Slow sales growth (6.4% YoY)

EPS YoY

+13.9%

Earnings growing (13.9% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

162%

Turns 162% of profit into real cash

FCF Margin

29.8%

Converts sales into free cash efficiently (29.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

0.00

Conservative — low debt load (0.00)

Interest Cover

100.00x

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

16.6x

Fair value — P/E 16.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+5.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (16.6 → 11.4)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend Yield

2.87%

Moderate income — 2.87% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+9.3%

Dividend growing modestly (9.3% YoY)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial