Dolby (DLB)
NYSEInformation TechnologySoftware - ApplicationSnapshot 2026-09-09
$61.84-0.77%
Close 2026-09-09 · 1-day change
NYSEInformation TechnologySoftware - ApplicationSnapshot 2026-09-09
Broken: Primary pillar broken — Revenue growth at or above ~6% YoY: rev +4.5% vs 6%.
Dolby grows sales about 7% a year with improving profit margins. Cash from operations rose from $54.8M to $92.5M recently. Dividends keep growing, now $0.36 per share. The company trades cheap with a price-to-earnings ratio of 11.7.
Recent soft guidance and a 24% stock drop show risks. Revenue growth could slow below 6%. Profit margins and cash flow gains may stall. The market expects about 6% revenue growth, which may be optimistic.
The price is about 20% below our fair value near $62. Analysts expect roughly 6% revenue growth. Our view aligns with this but sees risk from recent soft guidance and market selloff.
Breaks if: Cash from operations falls below $54.8M next quarter
Breaks if: Dividend per share falls below $0.33 next quarter
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment is characterized as a durable compounder with a focus on expanding its market presence. The current thesis state is mixed, as recent financial performance has been strong, but there are concerns about declining revenue in the latest quarter.
The market appears to price DLB as cheap compared to its peers, with a slight expectations gap. This suggests that while the stock is not overly expensive, there is a low level of confidence in its execution quality.
Management has prioritized expanding Dolby Atmos and Vision adoption, but recent revenue trends show a decline. The company has maintained stable dividend payments and is actively executing share buybacks, which may support fundamentals in the near term.
Key factors for DLB's future include the potential for a favorable shift in interest rates and the performance of major tech sector peers. Additionally, any negative guidance from management could significantly impact sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. A partnership with Qube Cinema expands the total addressable market and boosts Dolby Atmos and Vision adoption. There are no significant threats noted at this time.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Gross profit falls below $303.5M next quarter
Breaks if: YoY revenue growth falls below 6% next year
Over the next 1 to 3 years, DLB's performance will depend on its ability to navigate revenue challenges while leveraging its strategic priorities. Not investment advice.