The numbers: Fourth-quarter profit dropped 16% to $44 million, or 50 cents a share, as revenue declined 2.8% to $194 million. The operating margin widened from 27% to 28%. The balance sheet contains $231 million of cash and no debt.
The stock: DreamWorks has soared 131% in the past year, beating U.S. indices. The stock trades at a price-to-projected-earnings ratio of 16, on par with peers. Its PEG ratio, a measure of value relative to growth, of 0.5 represents a 55% discount to the industry average. A PEG ratio below 1 implies cheap shares.