Dolby Laboratories DLB

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
75/100
Strong

About Dolby Laboratories

Dolby Laboratories, Inc. engages in the design and manufacture of audio, imaging, accessibility, and other hardware and software solutions for television, broadcast, and live entertainment industries in the United States and internationally. The company develops and licenses its audio technologies, such as AAC, HE-AAC, and extended HE-AAC, a digital audio codec solution; AVC, a digital video codec used in STBs, … Full DLB analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 88.1% (top 5%) and operating margin at 19.6% (top 15%) indicate strong pricing power.
  • Strong Interest Coverage & Conservative Leverage Debt serviceability is strong (score 0.78), with robust interest coverage.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
74

Where DLB ranks in Specialty Business Services

Dolby Laboratories ranks #3 of 41 scored companies in Specialty Business Services by moat score — the top 7%. The widest moat in the group is Copart, Inc. (CPRT) at 81/100.

Moat scores for companies ranked near DLB in Specialty Business Services
# Company Moat score Rating
1 Copart, Inc. CPRT 81/100 Strong
2 Cintas Corporation CTAS 81/100 Strong
3 Dolby Laboratories DLB 75/100 Strong
4 RELX PLC PLC RELX 75/100 Moderate
5 Thomson Reuters Corp TRI 73/100 Moderate
6 UL Solutions Inc. ULS 72/100 Moderate
7 AZZ Inc. AZZ 71/100 Moderate
8 Cass Information Systems, Inc CASS 68/100 Moderate
9 Maximus, Inc. MMS 67/100 Moderate

See every General Corporate company ranked by moat score →

How DLB scores on the Corporate Default defenses

Pricing Power

Score 74 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 55 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 91 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 76 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 84 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 71 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding DLB's moat

What is Dolby Laboratories's moat score?

Dolby Laboratories (DLB) scores 75 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #3 of 41 scored companies in Specialty Business Services, the top 7%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 40 companies in Specialty Business Services. Its strongest defense is Customer Stickiness (91/100) and its weakest is Cost Advantage (55/100).

How does Dolby Laboratories compare with other Specialty Business Services companies?

Dolby Laboratories ranks #3 of 41 scored companies in Specialty Business Services by moat score. The widest moat in Specialty Business Services is Copart, Inc. (CPRT) at 81/100. The companies ranked closest are Cintas Corporation (CTAS) at 81 just above it and RELX PLC PLC (RELX) at 75 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 40 companies in Specialty Business Services. The defenses are then weighted to produce the overall score out of 100.

Why is Dolby Laboratories scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Dolby Laboratories?

The Corporate Default template measures 6 defenses, and DLB scores: Pricing Power (74), Cost Advantage (55), Customer Stickiness (91), Capital Efficiency (76), Resilience (84), Scale & Market Position (71). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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