Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, audio technology specialist Dolby Laboratories (NYSE: DLB ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Dolby's business and see what CAPS investors are saying about the stock right now.
Dolby facts
| Headquarters (Founded) |
San Francisco (1965) |
| Market Cap |
$3.53 billion |
| Industry |
Electronic components |
| Trailing-12-Month Revenue |
$939.5 million |
| Management |
CEO Kevin Yeaman (since 2009)
CFO Murray Demo (since 2009)
|
| Return on Equity (Average, Past 3 Years) |
19.7% |
| Cash/Debt |
$903.7 million / $0 |
| Competitors |
DTS (Nasdaq: DTSI )
Sony (NYSE: SNE )
SRS Labs (Nasdaq: SRSL )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 4,001 who have rated Dolby believe the stock will outperform the S&P 500 going forward. These bulls include troym72 and All-Star TSIF, who is ranked in the top 0.1% of our community.
Earlier this week, troym72 touched on the stock's recent drop:
The 18% drop due to the announcement that Dolby technology is not in the current working version of Windows 8 is totally overblown. Even if DLB loses the Microsoft revenue, they are still worth more than the current trading price. Thumps up Dolby!
Dolby even boasts a robust three-year average operating margin of 47%. That's much higher than that of rivals DTS (26.7%), Sony (1.3%), and SRS Labs (4.8%).
CAPS All-Star TSIF elaborates on the Dolby bull case:
[T]here is nothing in the history that tells us that they are subject to a double dip recession anymore than anyone else. In actuality, they have proven they can ride through it. Dolby is an innovator and even in a recession there are some things consumers will stretch for. ...
So, for me, it's a chance to get a piece of an innovator, solid cash producer, at a bargain price. If things don't go optimal for Windows 8 in the next two years I'll see if Dolby makes up for some of it with the PC makers. If not, I still have a cash machine buying back its shares. I fully believe that market sell-offs have no mentality in choosing their victims; the market in these cases is extremely inefficient. The more I can leverage the inefficiencies the less risk I will have during further panic.
What do you think about Dolby, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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