Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, audio technologist Dolby Laboratories
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.
|Headquarters (Founded)||San Francisco (1965)|
|Market Cap||$3.6 billion|
|Trailing-12-Month Revenue||$955.5 million|
|Management||CEO Kevin Yeaman (since 2009)
CFO Murray Demo (since 2009)
|Return on Equity (Average, Past 3 Years)||19.8%|
|Cash/Debt||$942.8 million / $0|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 4,080 members who have rated Dolby believe the stock will outperform the S&P 500 going forward. These bulls include All-Star wpfan, who is ranked in the top 15% of our community, and witness1260.
Just last week, wpfan tapped Dolby as a solid bargain opportunity:
Undervalued to begin with at this point. Wise leadership, good products that will find their way into lots of devices. The stock has been damaged MUCH more that the business actually has.
In fact, Dolby sports a cheapish forward P/E of 13.3. That represents a discount to competitors DTS (16.2), Sony (52.3), and SRS Labs (23.9).
CAPS member witness1260 elaborates on the bull case:
I don't think Dolby's going away. They've upped their R&D spending considerably. ... They're working to keep up with changes in technology. ... It's worth pointing out how huge their margins are as well, but I think that comes more out of the fact that most of their revenue is from licensing, which is what's starting to dry up. Still, I don't think Dolby is done and I would expect some catch-up.
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