Dorman Products (DORM) AI Stock Analysis

• Market Cap: $5.00B
• Dividend Yield: N/A
• Average Volume (3M): 241.56K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.77
• Revenue Growth: 6.76%
• EPS Growth: 34.97%
• Country: US
• Employees: 3,787
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Auto - Parts
• EPS (TTM): 2.06
• Shares Outstanding: 30,534,243
• 10 Day Avg. Volume: 191,358
• 30 Day Avg. Volume: 241,563
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 5.06
• Enterprise Value/Ebitda: 11.05
• 1Y Price Target: $172.75
• Price Target Upside: 3.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $184.00 ▲(10.62% Upside)

Dorman Products receives a strong overall score due to its robust financial performance and positive earnings call, which highlighted significant revenue growth and improved guidance. However, technical indicators suggest the stock may be overbought, and valuation metrics indicate moderate pricing. The absence of a dividend yield and cash flow challenges are areas to watch.

Positive Factors

Financial Performance

DORM's shares are considered a compelling entry point, trading below its five-year average and offering a wider premium due to outsized sales and EBIT growth.

Innovation Strategy

DORM's innovation strategy provides unique competitive advantages, allowing its light duty business to grow significantly faster than the industry.

Market Share Gains

Net sales growth of 8.3% was greater than the low- to mid-single digit market growth, indicating market share gains.

Negative Factors

Market Conditions

The current market conditions are not ideal for heavy duty/specialty vehicles, and challenges may persist in the near term.

Sales Decline

Sales in both Heavy Duty and Specialty Vehicle segments experienced declines, leading to decreased operating profits.

Trucking Market

The Heavy Duty segment will continue to be negatively impacted by a weak Class 8 trucking market.

Dorman Products Business Overview & Revenue Model

Company Description

Dorman Products, Inc. supplies replacement parts and fasteners for passenger cars, light trucks, and medium- and heavy-duty trucks in the automotive aftermarket industry worldwide. It offers original equipment dealer products, such as intake and exhaust manifolds, window regulators, radiator fan assemblies, tire pressure monitor sensors, exhaust gas recirculation coolers, and complex electronics modules; fluid reservoirs, variable valve timing components, complex electronics, and integrated door lock actuators; and oil drain plugs, and wheel bolts and lug nuts. The company also provides automotive replacement parts, including door handles, keyless remotes and cases, and door hinge repairs; and heavy duty aftermarket parts for class 4-8 vehicles, such as lighting, cooling, engine management, wheel hardware, air tanks, and cab products. It offers powertrain products comprising cooling products, harmonic balancers, fluid lines and reservoirs, connectors, 4-wheel drive components, other engine, and transmission and axle components; and chassis products, such as control arms, ball joints, tie-rod ends, brake hardware and hydraulics, axle hardware, suspension arms, knuckles, links, bushings, leaf springs, other suspension, steering, and brake components. The company also provides automotive body products, including window lift motors, switches and handles, wiper, and other interior and exterior automotive body components; and hardware products comprising threaded bolts; automotive and home electrical wiring components; and other hardware assortments and merchandise. It offers its products under the OE Solutions, HELP!, OE FIX, Conduct-Tite, and HD Solutions brands through automotive aftermarket retailers, such as on-line platforms; national, regional, and local warehouse distributors; and specialty markets; salvage yards; local independent parts wholesalers; and mass merchants. The company was founded in 1918 and is headquartered in Colmar, Pennsylvania.

How the Company Makes Money

Dorman Products generates revenue primarily through the sale of its extensive catalog of automotive parts and accessories, which are sold to both professional and DIY (do-it-yourself) customers. The company's revenue model is built on a combination of direct sales to automotive distributors, retailers, and online platforms, as well as through partnerships with major automotive chains and repair shops. Key revenue streams include sales of unique and proprietary parts that address specific vehicle needs, which often cannot be found from original equipment manufacturers (OEM). Additionally, Dorman benefits from ongoing demand in the automotive aftermarket industry due to vehicle aging, which drives the need for replacement parts. The company also engages in strategic partnerships and collaborations with automotive industry players to expand its product offerings and enhance market reach, contributing significantly to its overall earnings.

Dorman Products Financial Statement Overview

Summary

Dorman Products demonstrates strong revenue growth and profitability, supported by efficient cost management and a solid balance sheet. The company has improved its leverage position, enhancing financial stability. However, the decline in free cash flow growth and lower cash conversion ratios highlight areas for improvement in cash flow management.

Income Statement

Dorman Products shows strong revenue growth with a consistent increase over the years, highlighted by a 1.86% growth in the TTM period. The gross profit margin has improved to 40.88% in the TTM, indicating efficient cost management. However, the EBIT margin has slightly decreased compared to the previous year, suggesting potential operational cost pressures. Overall, the company maintains a healthy net profit margin of 10.83% in the TTM, reflecting solid profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.40 in the TTM, indicating a reduction in leverage and a stronger equity position. Return on equity is robust at 17.17%, demonstrating effective utilization of shareholder funds. The equity ratio stands at a healthy level, showing a stable financial structure. However, the company should continue to monitor its debt levels to maintain financial flexibility.

Cash Flow

Dorman Products experienced a decline in free cash flow growth by 26.92% in the TTM, which could impact future investment capabilities. The operating cash flow to net income ratio is relatively low at 0.34, suggesting potential challenges in converting earnings into cash. Despite this, the free cash flow to net income ratio remains strong at 79.39%, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.09B	2.01B	1.93B	1.73B	1.35B	1.09B
Gross Profit	852.73M	806.36M	685.42M	564.45M	462.92M	383.12M
EBITDA	390.71M	352.68M	271.29M	275.66M	221.81M	133.37M
Net Income	225.98M	190.00M	129.26M	121.55M	131.53M	106.87M
Balance Sheet
Total Assets	2.47B	2.42B	2.29B	2.34B	1.67B	1.22B
Cash, Cash Equivalents and Short-Term Investments	56.84M	57.14M	36.81M	46.03M	58.78M	155.58M
Total Debt	559.31M	572.78M	683.80M	832.55M	291.80M	37.08M
Total Liabilities	1.07B	1.13B	1.12B	1.30B	740.38M	367.10M
Stockholders Equity	1.40B	1.29B	1.17B	1.04B	932.74M	853.56M
Cash Flow
Free Cash Flow	139.34M	191.63M	164.79M	3.81M	80.50M	136.52M
Operating Cash Flow	175.50M	231.05M	208.76M	41.69M	100.34M	151.97M
Investing Cash Flow	-36.07M	-39.32M	-43.90M	-526.84M	-365.32M	-30.26M
Financing Cash Flow	-129.90M	-170.98M	-174.11M	472.50M	168.24M	-34.48M

Dorman Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 166.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DORM, the sentiment is Positive. The current price of 166.34 is above the 20-day moving average (MA) of 158.00, above the 50-day MA of 138.13, and above the 200-day MA of 129.71, indicating a bullish trend. The MACD of 7.66 indicates Positive momentum. The RSI at 73.28 is Negative, neither overbought nor oversold. The STOCH value of 84.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DORM.

Dorman Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	82 Outperform	$3.41B	11.93	22.96%	0.22%	-3.26%	-45.84%
LEA	76 Outperform	$5.91B	12.97	9.51%	2.77%	-3.12%	-8.23%
DORM	76 Outperform	$5.00B	22.27	17.38%	―	6.76%	34.97%
LKQ	69 Neutral	$8.33B	11.90	11.20%	3.71%	-3.02%	-1.02%
GNTX	66 Neutral	$6.25B	16.14	16.38%	1.69%	2.43%	-1.25%
Sector *	61 Neutral	$17.92B	12.81	-2.97%	2.98%	1.30%	-14.28%
DAN	61 Neutral	$2.70B	―	-5.00%	1.93%	-14.46%	-2170.83%

Dorman Products Corporate Events

Dorman Products Announces CFO Retirement and Transition

On June 2, 2025, Dorman Products announced the upcoming retirement of its Senior Vice President and Chief Financial Officer, David M. Hession, who has played a crucial role in the company’s financial success since 2019. The company has initiated a search for his successor and plans a smooth transition with Hession remaining in an advisory role post-retirement, reflecting Dorman’s commitment to maintaining its strong financial performance and strategic growth.