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Dorman Products
(NASDAQ:DORM)
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Rating:71Outperform
Price Target:
$151.00
▲(36.45% Upside)
Action:Reiterated
Date:06/17/26
The score is driven primarily by solid profitability and a healthier leverage profile, partially offset by weaker and less consistent cash flow. The earnings call supports a cautiously positive outlook with reaffirmed full-year guidance and strong capital returns, but margin compression and tariff uncertainty keep risks elevated. Technicals are moderately supportive in the near term, while valuation appears mid-range based on the provided P/E.
Positive Factors
Margin Strength
Sustained gross margins near 41% and steady high-single-digit net margins indicate durable pricing power and product mix advantages in the aftermarket. Broad SKU coverage and late-model repair focus support repeat demand and resilient profitability over the medium term.
Negative Factors
Weakened Cash Conversion
Volatile and reduced cash conversion undermines sustainable internal funding for capex, buybacks, and debt service. With FCF down recently, the company faces greater reliance on liquidity or capital markets to support capital return commitments and strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Strength
Sustained gross margins near 41% and steady high-single-digit net margins indicate durable pricing power and product mix advantages in the aftermarket. Broad SKU coverage and late-model repair focus support repeat demand and resilient profitability over the medium term.
Read all positive factors
Dorman Products Key Performance Indicators (KPIs)
Any
Revenue By Segment
Details revenue contributions from each business segment, indicating which areas are performing well and which may need strategic adjustments.
Details revenue contributions from each business segment, indicating which areas are performing well and which may need strategic adjustments.
Data provided by:
The Fly
The FlyDorman Products (DORM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.08B
Dividend YieldN/A
Average Volume (3M)257.44K
Price to Earnings (P/E)22.2
Beta (1Y)0.74
Revenue Growth5.04%
EPS Growth-10.80%
CountryUS
Employees3,787
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)6.24
Shares Outstanding29,882,790
10 Day Avg. Volume266,618
30 Day Avg. Volume257,436
Financial Highlights & Ratios
PEG Ratio2.44
Price to Book (P/B)2.57
Price to Sales (P/S)1.78
P/FCF Ratio50.07
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue1.94
Enterprise Value/Gross Profit4.77
Enterprise Value/Ebitda12.26
Forecast
1Y Price Target
$151.50Price Target Upside36.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)8.28
Revenue Forecast (FY)$2.29B
Dorman Products Business Overview & Revenue Model
Company Description
Dorman Products, Inc. (DORM) is a global supplier within the automotive aftermarket, providing an extensive range of replacement parts and fasteners for passenger vehicles, light trucks, and heavy-duty commercial trucks. Their comprehensive produc...
How the Company Makes Money
Dorman makes money primarily by selling automotive replacement parts in the North American aftermarket. Its core revenue model is product sales to automotive parts distributors, retailers, and other channel partners that supply professional repair...
Dorman Products Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: solid top-line growth (+4% YoY) with strong cash generation, a record share-repurchase program, a healthy balance sheet (net leverage ~0.99x) and reaffirmed full-year guidance, but these positives were tempered by meaningful margin compression (adjusted operating margin down 490 bps), a ~22% decline in adjusted EPS, and significant tariff-related cost uncertainty that weighed on volumes and near-term profitability. Management expects tariff pressure to abate through the year and for margins to recover, but uncertainties (future tariff regime and IEEPA refund outcomes) and a challenging heavy-duty market keep risks elevated.Positive Updates
Consolidated Revenue Growth
Total net sales of $529 million, up 4% year-over-year; two-year net sales growth of ~18% versus Q1 2024, driven primarily by pricing initiatives.
Negative Updates
Significant Margin Compression and EPS Decline
Adjusted operating margin was 12.1%, down 490 basis points YoY; adjusted gross margin ~36%, down 490 basis points; adjusted EBITDA margin 15.2%, down 440 basis points; adjusted diluted EPS $1.57, down approximately 22% YoY—largely driven by tariff-related costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Total net sales of $529 million, up 4% year-over-year; two-year net sales growth of ~18% versus Q1 2024, driven primarily by pricing initiatives.
Read all positive updates
Company Guidance
Management reaffirmed 2026 guidance calling for full‑year net sales growth of 7%–9% (pricing plus modest volume gains, primarily in the back half), adjusted operating margin of 15%–16% with an exit rate in the high‑teens, adjusted diluted EPS of $8.10–$8.50, and a full‑year tax rate of ~23.5%; the outlook includes tariffs enacted as of May 4, 2026, but excludes any potential IEEPA tariff refunds, tariff changes after May 4, 2026, future acquisitions/divestitures or additional repurchases. Management expects all three segments to roughly track the sales range and to drive margin expansion through supplier diversification, productivity and automation initiatives. For context, Q1 results that underlie the guide were: net sales $529M (+4% YoY), adjusted operating margin 12.1%, adjusted EBITDA margin 15.2%, adjusted diluted EPS $1.57, operating cash flow $44M and free cash flow $35M; capital deployment included $51M of repurchases (~435k shares at ~$118 avg) with $408M remaining authorization, net debt ≈$413M, total liquidity $627M and net leverage ~0.99x adjusted EBITDA.Dorman Products Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.15B | 2.13B | 2.01B | 1.93B | 1.73B | 1.35B |
| Gross Profit | 874.92M | 876.16M | 806.36M | 685.42M | 564.45M | 462.92M |
| EBITDA | 340.50M | 359.75M | 352.68M | 271.29M | 216.46M | 207.12M |
| Net Income | 190.24M | 204.19M | 190.00M | 129.26M | 121.55M | 131.53M |
Balance Sheet | ||||||
| Total Assets | 2.44B | 2.49B | 2.42B | 2.29B | 2.34B | 1.67B |
| Cash, Cash Equivalents and Short-Term Investments | 43.06M | 49.44M | 57.14M | 36.81M | 46.03M | 58.78M |
| Total Debt | 548.24M | 633.05M | 572.78M | 683.80M | 848.46M | 301.87M |
| Total Liabilities | 968.43M | 1.02B | 1.13B | 1.12B | 1.30B | 740.38M |
| Stockholders Equity | 1.47B | 1.48B | 1.29B | 1.17B | 1.04B | 932.74M |
Cash Flow | ||||||
| Free Cash Flow | 70.72M | 75.67M | 191.63M | 164.79M | 3.81M | 80.50M |
| Operating Cash Flow | 106.16M | 113.63M | 231.05M | 208.76M | 41.69M | 100.34M |
| Investing Cash Flow | -35.43M | -37.97M | -39.32M | -43.90M | -526.84M | -365.32M |
| Financing Cash Flow | -88.57M | -83.69M | -170.98M | -174.11M | 472.50M | 168.24M |
Dorman Products Technical Analysis
Positive
110.66
Price Trends
125.18
Positive
117.66
Positive
125.69
Positive
Market Momentum
3.99
Negative
64.01
Neutral
64.91
Neutral
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 110.66 is below the 20-day moving average (MA) of 132.13, below the 50-day MA of 125.18, and below the 200-day MA of 125.69, indicating a bullish trend. The MACD of 3.99 indicates Negative momentum. The RSI at 64.01 is Neutral, neither overbought nor oversold. The STOCH value of 64.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DORM.
Dorman Products Risk Analysis
Dorman Products disclosed 40 risk factors in its most recent earnings report. Dorman Products reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dorman Products Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.08B | 13.64 | 15.67% | 2.05% | 14.48% | 3.93% | |
74 Outperform | $6.75B | 13.50 | 10.41% | 2.63% | 2.86% | 17.30% | |
72 Outperform | $2.85B | 17.55 | 11.08% | 0.57% | -2.04% | -43.19% | |
71 Outperform | $4.08B | 22.20 | 13.06% | ― | 5.04% | -10.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $6.47B | 12.73 | 7.93% | 4.00% | -1.37% | -24.48% | |
49 Neutral | $2.84B | -20.08 | -12.67% | 1.70% | -23.37% | -131.29% |
* Consumer Cyclical Sector Average
DORM
Dorman Products
138.50
16.00
13.06%
DAN
Dana Incorporated
27.33
10.77
65.04%
GNTX
Gentex
24.20
1.58
6.98%
LEA
Lear
136.14
32.29
31.09%
LKQ
LKQ
25.38
-11.67
-31.49%
VC
Visteon
106.58
-2.81
-2.57%
Dorman Products Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Dorman Products Restructures Debt With New Notes, Revolver
Positive
Jun 17, 2026
On June 16, 2026, Dorman Products, Inc. issued $450 million of 6.250% senior unsecured notes due June 15, 2034, with semi-annual interest payments and full, unconditional guarantees from certain wholly owned subsidiaries, while establishing standa...
Business Operations and StrategyPrivate Placements and Financing
Dorman Products Announces $450 Million Senior Notes Offering
Positive
Jun 3, 2026
On June 2, 2026, Dorman Products, Inc. announced that it entered into a purchase agreement to issue and sell $450 million of 6.250% senior notes due 2034 in a private offering to qualified institutional buyers and certain non-U.S. investors. The n...
Executive/Board ChangesShareholder Meetings
Dorman Products Shareholders Approve Directors and Incentive Plan
Positive
May 18, 2026
Dorman Products held its 2026 Annual Meeting of Shareholders on May 15, 2026, where investors voted on board composition, executive pay, auditor ratification and a new incentive plan. Shareholders elected eight directors to one-year terms, includi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.