Dorman Products (DORM)
NASDAQ:DORM
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Dorman Products
(NASDAQ:DORM)
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Rating:65Neutral
Price Target:
$108.00
▼(-1.33% Downside)
Action:DowngradedDate:02/28/26
The score is driven primarily by solid profitability and an improving leverage profile, offset by notably weaker and more volatile cash generation. Technicals further weigh on the score as the stock is in a clear downtrend with negative momentum. Valuation appears reasonable at ~17.75x earnings, and the earnings call was supportive on 2026 growth/margin recovery, but near-term tariff and segment-specific pressures remain key risks.
Positive Factors
Revenue & Margin Strength
Sustained top-line acceleration and above-average gross and EBIT margins indicate durable product demand and pricing power in the aftermarket. This margin base supports reinvestment in new SKUs, funds margin improvement initiatives, and provides a buffer versus cyclical OEM exposures.
Negative Factors
Weak & Volatile Cash Flow
Sharp swings in operating cash flow and weak cash conversion reduce confidence in free cash generation reliability. This constrains sustained capital returns, debt reduction or incremental product investment and increases sensitivity to working-capital timing and inventory exposures.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Strength
Sustained top-line acceleration and above-average gross and EBIT margins indicate durable product demand and pricing power in the aftermarket. This margin base supports reinvestment in new SKUs, funds margin improvement initiatives, and provides a buffer versus cyclical OEM exposures.
Read all positive factors
Dorman Products (DORM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.30B
Dividend YieldN/A
Average Volume (3M)289.17K
Price to Earnings (P/E)18.6
Beta (1Y)0.77
Revenue Growth7.94%
EPS Growth34.84%
CountryUS
Employees3,787
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)2.17
Shares Outstanding30,183,260
10 Day Avg. Volume205,850
30 Day Avg. Volume289,172
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 Cap1.18
Enterprise Value/Revenue1.82
Enterprise Value/Gross Profit4.36
Enterprise Value/Ebitda10.81
Forecast
1Y Price Target
$150.33Price Target Upside37.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)8.28
Revenue Forecast (FY)$2.29B
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 e...
How the Company Makes Money
Dorman makes money primarily by selling automotive replacement parts and assemblies under the Dorman brand and other brands/labels to customers in the automotive aftermarket, including major retailers, distributors/WDs, and professional repair cha...
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 Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presents a generally positive picture: the company delivered solid full-year revenue growth, material margin and EPS expansion, record new-product sales and improved leverage while providing confident 2026 guidance (7%–9% sales growth and recovery of margin profile). However, near-term headwinds are notable — tariff-driven high-cost inventory materially depressed full-year cash flow, Q4 shipments were impacted by a large customer changing ordering patterns, and a $51 million goodwill impairment underscores pressure in heavy-duty. Management expects these tariff timing effects to weigh on H1 2026 results but to reverse through the back half of the year with continued supplier diversification, automation and commercialization initiatives supporting recovery and long-term growth.Positive Updates
Full-Year Revenue Growth
Net sales of $2.13 billion for FY2025, up 6% year-over-year, driven by strong light-duty demand in H1 and tariff-related pricing in H2.
Negative Updates
Significant Cash Flow Impact from Tariffs
Full-year operating cash flow declined 51% year-over-year and free cash flow fell 61% YoY, primarily due to higher-cost inventory driven by tariffs.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth
Net sales of $2.13 billion for FY2025, up 6% year-over-year, driven by strong light-duty demand in H1 and tariff-related pricing in H2.
Read all positive updates
Company Guidance
Management guided 2026 net sales growth of 7%–9% (directionally similar across light‑duty, heavy‑duty and specialty), an operating margin of 15%–16% for the full year with a “high‑teens” exit rate, adjusted diluted EPS of $8.10–$8.50 (implying ~6%–12% comparable EPS growth), and an expected full‑year tax rate of ~23.5%; they said margins will be pressured in Q1 as higher‑cost, tariff‑impacted inventory hits in H1 (FIFO lag ~7–8 months) with meaningful margin improvement in H2, assumed mid‑single‑digit POS growth, continued supply diversification targeting China spend of ~30% in 2026, and guidance assumes tariff levels remain generally consistent with pre‑IEEPA rules (excluding any potential IEEPA refunds); balance‑sheet context: year‑end 2025 net debt $391M, net leverage 0.89x adjusted EBITDA, and total liquidity $648M.Dorman Products Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
74
Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.13B | 2.01B | 1.93B | 1.73B | 1.35B |
| Gross Profit | 876.16M | 806.36M | 685.42M | 564.45M | 462.92M |
| EBITDA | 359.75M | 352.68M | 271.29M | 216.46M | 207.12M |
| Net Income | 204.19M | 190.00M | 129.26M | 121.55M | 131.53M |
Balance Sheet | |||||
| Total Assets | 2.49B | 2.42B | 2.29B | 2.34B | 1.67B |
| Cash, Cash Equivalents and Short-Term Investments | 49.44M | 57.14M | 36.81M | 46.03M | 58.78M |
| Total Debt | 633.05M | 572.78M | 683.80M | 848.46M | 301.87M |
| Total Liabilities | 1.02B | 1.13B | 1.12B | 1.30B | 740.38M |
| Stockholders Equity | 1.48B | 1.29B | 1.17B | 1.04B | 932.74M |
Cash Flow | |||||
| Free Cash Flow | 75.67M | 191.63M | 164.79M | 3.81M | 80.50M |
| Operating Cash Flow | 113.63M | 231.05M | 208.76M | 41.69M | 100.34M |
| Investing Cash Flow | -37.97M | -39.32M | -43.90M | -526.84M | -365.32M |
| Financing Cash Flow | -83.69M | -170.98M | -174.11M | 472.50M | 168.24M |
Dorman Products Technical Analysis
Negative
109.46
Price Trends
114.68
Negative
120.91
Negative
131.54
Negative
Market Momentum
-1.86
Negative
53.93
Neutral
86.46
Negative
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 109.46 is above the 20-day moving average (MA) of 104.02, below the 50-day MA of 114.68, and below the 200-day MA of 131.54, indicating a neutral trend. The MACD of -1.86 indicates Negative momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 86.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.74B | 13.27 | 15.56% | 2.05% | 2.99% | -9.80% | |
72 Outperform | $6.32B | 14.06 | 8.79% | 2.63% | -1.90% | -13.86% | |
72 Outperform | $2.52B | 12.87 | 13.90% | 0.57% | -4.03% | -39.51% | |
68 Neutral | $7.75B | 12.73 | 9.42% | 4.00% | -3.71% | -0.27% | |
65 Neutral | $3.30B | 18.56 | 14.34% | ― | 7.94% | 34.84% | |
62 Neutral | $3.99B | 38.91 | -2.91% | 1.70% | -18.23% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
DORM
Dorman Products
109.46
-4.04
-3.56%
DAN
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36.46
25.64
237.09%
GNTX
Gentex
21.99
1.11
5.31%
LEA
Lear
124.60
48.27
63.24%
LKQ
LKQ
30.38
-10.25
-25.22%
VC
Visteon
94.00
24.83
35.90%
Dorman Products Corporate Events
Business Operations and StrategyExecutive/Board Changes
Dorman Products announces broad senior leadership team changes
Positive
Jan 20, 2026
On January 19, 2026, Dorman Products announced a suite of senior leadership changes intended to accelerate its growth strategy and sharpen execution across its light-duty and heavy-duty vehicle aftermarket segments. Charles W. Rayfield joined the ...
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.