Balance sheet analysis
Dolby Laboratories’ total assets were $3 billion and $2.7 billion as of September 29, 2023 and as of September 30, 2022 , respectively.
Total current assets were $1.49 billion as of September 29, 2023, accounting for 50% of total assets.
Cash and cash equivalents were $745 million as of September 29, 2023, consisting of 24.8% of total assets.
Total liabilities were $607 million as of September 29, 2023, which was slightly less than $745 million in cash and cash equivalents.
The debt was minimal.
Profitability analysis
Dolby Laboratories’ total revenues were $1.3 billion, $1.25 billion and $1.28 billion in fiscal year ended September 29, 2023, in fiscal year ended September 30, 2022 and in fiscal year ended September 24, 2021, respectively.
Total revenues in 2023 were up 4% year-on-year.
Total revenues in 2022 were down 2.3% year-on-year.
We could see that the company’s total revenues was stagnant .
Net income was $200 million, $184 million and $310 million in 2023, 2022 and 2021, respectively.
Net profit margin was 15.4%,14.7% and 24.2% in 2023, 2022 and 2021, respectively.
The company’s return on equity was 8.4% and 8.2% in 2023 and 2022, respectively.
The company’s return on equity was not high.
Stock-based compensation was $118 million, $115 million and $100 million in 2023, 2022 and 2021, respectively.
We need to note that stock-based compensation expenses would reduce valuation in company.
Cash flow analysis
Net cash provided by operating activities was $367 million, $318.6 million and $447.8 million in 2023, 2022 and 2021, respectively.
Repurchases of common stock were $150 million, $530 million and $246 million for 2023, 2022 and 2021, respectively.
Payment of cash dividend was $103 million, $100 million and $89 million in 2023, 2022 and 2021, respectively.
Dolby Laboratories’ operating results for the quarterly period ended December 29, 2023.
The company’s total revenue was $315.6 million and $335 million in fiscal quarter ended December 29, 2023, and in fiscal quarter ended December 30,2022,respectively.
Net income was $67 million and $80 million in fiscal quarter ended December 29, 2023 and in fiscal quarter ended December 30, 2022, respectively.
Conclusion
The balance sheet was very healthy.
The return on equity was mediocre.
The company’s stock price is $83.17 per share, which is equivalent to $7.95 billion in market cap.
We reckon that the reasonable market price is $4 billion.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
Dolby Laboratories creates audio and imaging technologies that transform entertainment for content playback in movies, TV, music, gaming and user-generated content. Founded in 1965, our strengths stem from expertise in analog and digital signal processing and digital compression technologies that have transformed the ability of artists to convey entertainment experiences to their audiences through recorded media. Such technologies led to the development of our noise-reduction systems for analog tape recordings, and have since evolved into multiple offerings that enable more immersive sound for cinema, DTV transmissions and devices, mobile devices, OTT video and music services, home entertainment devices, and automobiles.
Today, we derive the majority of our revenue from licensing our audio technologies. We also derive revenue from licensing our consumer imaging technologies, as well as audio and imaging technologies for premium cinema offerings in collaboration with exhibitors. In addition to our licensing business, we provide products and services for a variety of applications in the cinema and broadcast markets, and offer solutions to companies building real-time digital experiences that increase audience engagement.
