DLB Industrials

Dolby Laboratories, Inc.

$63.32+0.06%

Price as of close on Nov 3, 2026 · Financials updated Oct 8, 2026

Basics

Sector: Industrials
Industry: Specialty Business Services
Country: United States
Market cap: 5.9B USD
Enterprise value: 5.3B USD
Full-time employees: 2,051

Overall health

Strength: lower risk than most peers: more short-term liquidity and less debt relative to equitylower risk: more liquidity and less debt vs equity
Drawback: growing more slowly than most peersgrowing more slowly than peers
About average: valuation

Ranks #622 of 2,308 industrials companies (top 27%)

See how it ranks against its peers

Worth knowing

Stock pay is large next to buybacks. Stock-based pay expense $367M vs $434M spent repurchasing shares over the 3 fiscal years to FY Sep 2025.
Over three fiscal years Dolby Laboratories recorded $367M of stock-based pay expense and spent $434M repurchasing shares (repurchases can include shares withheld to cover employees' taxes).Over three fiscal years Dolby Laboratories recorded $367M of stock-based pay expense and spent $434M repurchasing shares.
Profits growing faster than sales. Since FY Sep 2022: revenue +7.6%, operating profit +28%.
Since FY Sep 2022, Dolby Laboratories's revenue grew 7.6% while operating profit grew 28%: each extra dollar of sales is adding more profit.
Profit is backed by cash. Free cash flow is 174% of reported profit.
Dolby Laboratories's free cash flow is 174% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.
Wide margins. Operating margin 18% (12 months to Jun 2026) vs a peer median of 7.7%.Operating margin 18% vs peers 7.7%.
Dolby Laboratories keeps 18% of revenue as operating profit, more than 85% of peers (median 7.7%).

StockQuotient Score

62/ 100

Oct 5 63 → Nov 4 62 (-1)

Valuation

Is the price right?

51/100

Moderate▼ 1 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 52 → 51

Share price +0.9%-1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Helped by:

▲ FCF yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield3.8%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.00Sector median: 0.0377 · MAD: 0.0294

EBITDA yield6.7%

Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 monthsReported value50% base weight · Z-score -0.07Sector median: 0.0695 · MAD: 0.0425

Free cash flow yield6.6%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 0.77Sector median: 0.0370 · MAD: 0.0370

Other data (not scored)

Book yield43.2%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.5027 · MAD: 0.2823

Growth

Is it growing?

32/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ EPS growth
▼ Revenue growth
▼ 3-yr revenue

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth-12.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.78Sector median: 0.0709 · MAD: 0.2481

3-year revenue growth1.7%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score -0.40Sector median: 0.0421 · MAD: 0.0625

Revenue growth0.6%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.50Sector median: 0.0439 · MAD: 0.0766

Profitability

Does it earn well?

79/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ Operating margin
▲ ROA
▲ ROIC

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin17.7%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.96Sector median: 0.0773 · MAD: 0.0507

Return on assets7.2%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.69Sector median: 0.0311 · MAD: 0.0241

Return on invested capital9.9%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.49Sector median: 0.0715 · MAD: 0.0558

Other data (not scored)

Gross margin87.6%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentileInformational · 0% composite weightSector median: 0.2573 · MAD: 0.1038

Return on equity8.8%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0802 · MAD: 0.0639

Risk

Debt, liquidity, price swings

Lower

Lower relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ Debt / equity
▲ Current ratio

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.78

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -0.48Sector median: 0.6440 · MAD: 0.2745

Current ratio3.19×

SEC filings · latest balance sheetReported value33% base weight · Z-score 2.92Sector median: 1.6180 · MAD: 0.5360

Debt / equity0.02×

Yahoo Finance fallback · no standard SEC debt tagReported value33% base weight · Z-score 1.14Sector median: 0.4019 · MAD: 0.3378

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Dolby Laboratories

Is Dolby Laboratories getting weaker?: Its latest SEC filing (Jul 30, 2026) showed no major changes. Its overall score is unchanged at 62/100 since Oct 28, 2026.
How is Dolby Laboratories valued vs its peers?: Priced about in line with its peers. Valuation scores 51/100 against 2,459 industrials peers. Free cash flow yield 6.6% vs a peer median of 3.7% (stronger than 71% of peers).Free cash flow yield 6.6% vs peers 3.7% (stronger than 71% of peers).
Is Dolby Laboratories growing?: More slowly than most of its peers. Growth scores 32/100 against 2,459 industrials peers. Earnings per share growth -12.3% vs a peer median of 7.1% (weaker than 70% of peers).Earnings per share growth -12.3% vs peers 7.1% (weaker than 70% of peers).
How profitable is Dolby Laboratories?: More profitable than most of its peers. Profitability scores 79/100 against 2,459 industrials peers. Operating margin 17.7% vs a peer median of 7.7% (stronger than 85% of peers).Operating margin 17.7% vs peers 7.7% (stronger than 85% of peers).
How risky is Dolby Laboratories?: Lower risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings. Debt / equity 0.02× vs a peer median of 0.40× (stronger than 90% of peers).Debt / equity 0.02× vs peers 0.40× (stronger than 90% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 26, 2026 · filed Jul 30, 2026 · compared with the quarter ended Mar 27, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	1.4B USD	1.4B USD	−0.8%
Net income (12 months)	243.6M USD	226.2M USD	−7.2%
Operating margin	18.5%	17.7%	−0.8 pts
Free cash flow (12 months)	301.5M USD	392.7M USD	+30.3%
Cash	594.3M USD	669.4M USD	+12.6%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Sector: Industrials · 318 companies

Valuations in Industrials are near the top of their range since 2016.

85% of months since 2016 were valued lower than now.
41% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +20% and earnings +14% (medians): prices and earnings moved broadly together.
Median price-to-sales is −24% vs the whole market, against a usual −31%.

2016Shaded: most expensive fifth of its range2026

Shown for Industrials: too few Specialty Business Services companies have a long enough history of their own.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY Sep 2021	FY Sep 2022	FY Sep 2023	FY Sep 2024	FY Sep 2025	Change
Gross margin	89.9%	88.7%	88.3%	89.0%	88.1%	▼ 0.8 pts
Operating margin	26.9%	16.5%	16.6%	20.3%	19.6%	▼ 0.6 pts
Net margin	24.2%	14.7%	15.4%	20.6%	18.9%	▼ 1.7 pts
Return on assets (ROA)	10.0%	6.8%	6.7%	8.4%	7.9%	▼ 0.5 pts
Return on equity (ROE)	11.9%	8.2%	8.5%	10.6%	9.7%	▼ 0.8 pts
Free cash flow margin	30.7%	21.6%	25.9%	23.3%	32.3%	▲ 9.0 pts
Current ratio	5.58×	4.72×	3.52×	2.86×	3.17×	▲ 11%
Quick ratio	5.54×	4.64×	3.44×	2.78×	3.10×	▲ 12%
Interest coverage	718.98×	524.38×	—	—	—	—

DLB price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: lower risk than most peers: more short-term liquidity and less debt relative to equitylower risk: more liquidity and less debt vs equity

Drawback: growing more slowly than most peersgrowing more slowly than peers

About average: valuation

Ranks #622 of 2,308 industrials companies (top 27%)

See how it ranks against its peers

Worth knowing

Stock pay is large next to buybacks. Stock-based pay expense $367M vs $434M spent repurchasing shares over the 3 fiscal years to FY Sep 2025.

Over three fiscal years Dolby Laboratories recorded $367M of stock-based pay expense and spent $434M repurchasing shares (repurchases can include shares withheld to cover employees' taxes).Over three fiscal years Dolby Laboratories recorded $367M of stock-based pay expense and spent $434M repurchasing shares.

Profits growing faster than sales. Since FY Sep 2022: revenue +7.6%, operating profit +28%.

Since FY Sep 2022, Dolby Laboratories's revenue grew 7.6% while operating profit grew 28%: each extra dollar of sales is adding more profit.

Profit is backed by cash. Free cash flow is 174% of reported profit.

Dolby Laboratories's free cash flow is 174% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

Wide margins. Operating margin 18% (12 months to Jun 2026) vs a peer median of 7.7%.Operating margin 18% vs peers 7.7%.

Dolby Laboratories keeps 18% of revenue as operating profit, more than 85% of peers (median 7.7%).

Questions investors ask about Dolby Laboratories

Is Dolby Laboratories getting weaker?

Its latest SEC filing (Jul 30, 2026) showed no major changes. Its overall score is unchanged at 62/100 since Oct 28, 2026.

How is Dolby Laboratories valued vs its peers?

Priced about in line with its peers. Valuation scores 51/100 against 2,459 industrials peers. Free cash flow yield 6.6% vs a peer median of 3.7% (stronger than 71% of peers).Free cash flow yield 6.6% vs peers 3.7% (stronger than 71% of peers).

Is Dolby Laboratories growing?

More slowly than most of its peers. Growth scores 32/100 against 2,459 industrials peers. Earnings per share growth -12.3% vs a peer median of 7.1% (weaker than 70% of peers).Earnings per share growth -12.3% vs peers 7.1% (weaker than 70% of peers).

How profitable is Dolby Laboratories?

More profitable than most of its peers. Profitability scores 79/100 against 2,459 industrials peers. Operating margin 17.7% vs a peer median of 7.7% (stronger than 85% of peers).Operating margin 17.7% vs peers 7.7% (stronger than 85% of peers).

How risky is Dolby Laboratories?

Lower risk relative to 2,459 industrials peers, judged on debt, liquidity and share-price swings. Debt / equity 0.02× vs a peer median of 0.40× (stronger than 90% of peers).Debt / equity 0.02× vs peers 0.40× (stronger than 90% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

1.4B USD

1.4B USD

−0.8%

Net income (12 months)

243.6M USD

226.2M USD

−7.2%

Operating margin

18.5%

17.7%

−0.8 pts

Free cash flow (12 months)

301.5M USD

392.7M USD

+30.3%

Cash

594.3M USD

669.4M USD

+12.6%

Key ratios

FY Sep 2021

FY Sep 2022

FY Sep 2023

FY Sep 2024

FY Sep 2025

Change

Gross margin

89.9%

88.7%

88.3%

89.0%

88.1%

▼ 0.8 pts

Operating margin

26.9%

16.5%

16.6%

20.3%

19.6%

▼ 0.6 pts

Net margin

24.2%

14.7%

15.4%

20.6%

18.9%

▼ 1.7 pts

Return on assets (ROA)

10.0%

6.8%

6.7%

8.4%

7.9%

▼ 0.5 pts

Return on equity (ROE)

11.9%

8.2%

8.5%

10.6%

9.7%

▼ 0.8 pts

Free cash flow margin

30.7%

21.6%

25.9%

23.3%

32.3%

▲ 9.0 pts

Current ratio

5.58×

4.72×

3.52×

2.86×

3.17×

▲ 11%

Quick ratio

5.54×

4.64×

3.44×

2.78×

3.10×

▲ 12%

Interest coverage

718.98×

524.38×

—