Dorman Products (DORM) AI Stock Analysis

• Market Cap: $4.10B
• Dividend Yield: N/A
• Average Volume (3M): 251.19K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.84
• Revenue Growth: 7.94%
• EPS Growth: 34.84%
• Country: US
• Employees: 3,787
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.62
• Shares Outstanding: 30,562,643
• 10 Day Avg. Volume: 300,731
• 30 Day Avg. Volume: 251,187
• PEG Ratio: 0.43
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 20.82
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 5.93
• Enterprise Value/Ebitda: 12.69
• 1Y Price Target: $181.40
• Price Target Upside: 36.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 8.72
• Revenue Forecast (FY): $2.17B

• Rating: 75 Outperform
• Price Target: $156.00 ▲(17.11% Upside)

Dorman Products demonstrates solid financial performance and positive earnings call insights, with strong revenue and margin growth. However, technical indicators suggest potential bearish momentum, and the decline in free cash flow growth is a concern. The stock is reasonably valued, but the absence of a dividend yield may deter income-focused investors.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Margin Expansion

Robust margin expansion reflects efficient cost management and pricing strategies, enhancing profitability and competitive positioning.

Supplier Diversification

Supplier diversification reduces dependency on a single region, mitigating risks and improving supply chain resilience, which is crucial for long-term stability.

Negative Factors

Tariff-Related Challenges

Tariff impacts on cash flow can strain financial resources, affecting the company's ability to reinvest and sustain growth.

Heavy Duty Segment Challenges

Ongoing challenges in the Heavy Duty segment could limit growth opportunities and profitability in this key market area.

Decline in Free Cash Flow

A decline in free cash flow limits the company's ability to fund operations and invest in growth, potentially impacting long-term financial health.

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 shows strong financial performance with robust revenue and profit growth, efficient cost management, and operational effectiveness. The balance sheet is solid with controlled leverage and strong equity positioning. However, the decline in free cash flow growth is a concern, necessitating attention to cash flow management.

Income Statement

Dorman Products has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 1.92% and consistent improvement in profitability metrics. The gross profit margin has improved to 40.88% in the TTM, indicating efficient cost management. The net profit margin has also increased to 10.83%, reflecting enhanced profitability. EBIT and EBITDA margins have shown positive trends, reaching 16.03% and 18.73% respectively, showcasing operational efficiency. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The balance sheet of Dorman Products is stable with a manageable debt-to-equity ratio of 0.44 in the TTM, indicating prudent leverage. The return on equity has improved to 16.98%, showcasing effective utilization of shareholder funds. The equity ratio stands at 53.36%, reflecting a strong equity base relative to total assets. While the debt levels have decreased over time, maintaining this trajectory will be crucial to ensure financial stability.

Cash Flow

The cash flow statement presents mixed results. Although the operating cash flow to net income ratio is at 0.31, indicating moderate cash generation from operations, the free cash flow has declined by 24.34% in the TTM, raising concerns about cash availability for reinvestment. The free cash flow to net income ratio is healthy at 0.79, suggesting that a significant portion of earnings is converted into free cash flow. Continued focus on improving cash flow generation will be essential.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	2.13B	2.01B	1.93B	1.73B	991.33M	973.71M
Gross Profit	890.36M	806.36M	685.42M	564.45M	339.82M	373.28M
EBITDA	416.19M	352.68M	271.29M	216.46M	105.83M	198.53M
Net Income	247.15M	190.00M	129.26M	121.55M	83.76M	133.60M
Balance Sheet
Total Assets	2.42B	2.42B	2.29B	2.34B	1.04B	889.36M
Cash, Cash Equivalents and Short-Term Investments	57.14M	57.14M	36.81M	46.03M	68.35M	43.46M
Total Debt	572.78M	572.78M	683.80M	848.46M	29.73M	0.00
Total Liabilities	1.13B	1.13B	1.12B	1.30B	267.49M	161.73M
Stockholders Equity	1.29B	1.29B	1.17B	1.04B	773.58M	727.62M
Cash Flow
Free Cash Flow	105.42M	191.63M	164.79M	3.81M	65.75M	52.01M
Operating Cash Flow	143.41M	231.05M	208.76M	41.69M	95.31M	78.11M
Investing Cash Flow	-37.89M	-39.32M	-43.90M	-526.84M	-29.56M	-59.15M
Financing Cash Flow	-94.92M	-170.98M	-174.11M	472.50M	-40.85M	-46.94M

Dorman Products Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 133.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DORM, the sentiment is Negative. The current price of 133.21 is below the 20-day moving average (MA) of 140.39, below the 50-day MA of 148.91, and above the 200-day MA of 132.98, indicating a neutral trend. The MACD of -4.64 indicates Positive momentum. The RSI at 38.70 is Neutral, neither overbought nor oversold. The STOCH value of 45.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DORM.

Dorman Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DORM	75 Outperform	$4.10B	16.58	18.19%	―	7.94%	34.84%
LEA	75 Outperform	$5.61B	13.23	8.96%	2.81%	-1.90%	-13.86%
VC	71 Outperform	$2.93B	9.63	23.16%	0.25%	-4.03%	-39.51%
LKQ	70 Neutral	$7.92B	11.49	10.87%	3.85%	-3.71%	-0.27%
GNTX	66 Neutral	$5.10B	13.79	15.23%	2.06%	2.99%	-9.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	54 Neutral	$2.50B	48.42	-4.82%	1.84%	-18.23%	―

Dorman Products Corporate Events

Dorman Products Reports Strong Q3 2025 Performance

Dorman Products, Inc., a prominent player in the motor vehicle aftermarket industry, is known for its innovative aftermarket replacement products that enhance vehicle maintenance and repair. The company has a rich history of over 100 years, providing solutions that save time and money for vehicle professionals and enthusiasts.

Dorman Products’ Earnings Call Highlights Growth Amid Tariff Challenges

Dorman Products’ recent earnings call conveyed a generally positive sentiment, highlighting strong revenue and margin growth. The company has effectively implemented pricing strategies and diversified its supplier base, which has significantly boosted its earnings per share (EPS). However, challenges persist, particularly due to tariff-related impacts on cash flow and struggles within specific segments like Heavy Duty and Specialty Vehicles.

Dorman Products Reports Strong Q2 2025 Results

Dorman Products, Inc. is a prominent supplier in the motor vehicle aftermarket industry, known for offering a wide range of replacement parts and innovative solutions for cars, trucks, and specialty vehicles. Founded over a century ago, the company continues to expand its global presence with a focus on convenience and reliability.

Dorman Products Reports Strong Q2 Earnings and Positive Outlook

The latest earnings call from Dorman Products painted a picture of robust business performance, particularly in the light-duty segment. The company reported substantial revenue growth and margin expansion, leading to a significant increase in earnings per share (EPS) and positive guidance for the full year. However, challenges such as tariff impacts and underperformance in the specialty vehicle and heavy-duty segments were also acknowledged.