Dorman Products (DORM) AI Stock Analysis

• Market Cap: $3.87B
• Dividend Yield: N/A
• Average Volume (3M): 155.61K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.76
• 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: 160,382
• 30 Day Avg. Volume: 155,613
• 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: 1.11
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 4.84
• Enterprise Value/Ebitda: 10.36
• 1Y Price Target: $165.00
• Price Target Upside: 32.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $141.00 ▲(13.53% Upside)

The score is driven primarily by strong underlying financial performance (improving margins and solid leverage) and supportive earnings guidance with strong recent execution. Offsetting factors include weaker cash flow trends and tariff-related cash flow/margin risks, while technical indicators point to neutral-to-soft momentum. Valuation appears reasonable based on P/E, and leadership changes are a modest positive.

Positive Factors

High and Improving Margins

Sustained high gross and net margins reflect durable pricing power and cost control across Dorman’s aftermarket parts portfolio. Improved EBIT/EBITDA margins indicate structural operating leverage that should support cash earnings and reinvestment capacity over the next several quarters.

Prudent Leverage and Equity Base

A conservative leverage profile and strong equity ratio provide financial flexibility to weather industry cycles, fund product development, and pursue targeted growth. Improved ROE signals effective capital deployment that supports long-term shareholder value creation.

Supply Diversification Initiative

Actively diversifying suppliers away from China reduces structural tariff exposure and supply-chain concentration risk. This strategic shift should sustainably lower cost volatility and improve gross margin resilience versus peers reliant on single-source geographies.

Negative Factors

Weakened Cash Generation

Material decline in free cash flow and a low operating cash flow-to-net income ratio indicate weaker conversion of earnings into cash. Over months, this constrains reinvestment, dividend or buyback flexibility and increases reliance on operating improvements to fund growth.

Tariff and Trade Exposure

Ongoing tariff pressures constitute a structural input-cost and pricing risk for an import-reliant parts supplier. If tariffs persist or escalate, they can depress margins and cash generation, forcing sustained price increases or margin compression versus competitors with different sourcing.

Segment-Specific Operational Pressure

Underperformance in Heavy Duty and Specialty Vehicle segments signals structural demand and productivity headwinds in parts categories. Persistent weakness in these niches can limit consolidated revenue growth and require targeted capex or restructuring to restore margins over several quarters.

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 automotive replacement parts and accessories to both professional installers and consumers. The company operates a multi-channel distribution model, selling products through traditional automotive retailers, e-commerce platforms, and directly to repair shops. Key revenue streams include sales of new product lines developed through extensive research and development efforts, as well as revenue from expanding their product offerings in niche markets. Dorman also benefits from strategic partnerships with major automotive retailers and distributors, which enhance its market reach and visibility. Additionally, the company's focus on innovation, including the introduction of exclusive product solutions and enhancements, allows it to maintain competitive pricing while maximizing profit margins.

Dorman Products Financial Statement Overview

Summary

Strong profitability and operating efficiency (TTM gross margin 40.88%, net margin 10.83%; improving EBIT/EBITDA margins) and a solid balance sheet (debt-to-equity 0.44, equity ratio 53.36%). The main offset is weaker cash generation trends, with free cash flow down 24.34% TTM and a low operating cash flow to net income ratio (0.31).

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 2021	Dec 2020
Income Statement
Total Revenue	2.13B	2.01B	1.93B	1.73B	1.35B	1.09B
Gross Profit	890.36M	806.36M	685.42M	564.45M	462.92M	383.12M
EBITDA	416.19M	352.68M	271.29M	216.46M	207.12M	168.64M
Net Income	247.15M	190.00M	129.26M	121.55M	131.53M	106.87M
Balance Sheet
Total Assets	2.55B	2.42B	2.29B	2.34B	1.67B	1.22B
Cash, Cash Equivalents and Short-Term Investments	55.51M	57.14M	36.81M	46.03M	58.78M	155.58M
Total Debt	554.76M	572.78M	683.80M	848.46M	301.87M	37.08M
Total Liabilities	1.07B	1.13B	1.12B	1.30B	740.38M	367.10M
Stockholders Equity	1.48B	1.29B	1.17B	1.04B	932.74M	853.56M
Cash Flow
Free Cash Flow	105.42M	191.63M	164.79M	3.81M	80.50M	136.52M
Operating Cash Flow	143.41M	231.05M	208.76M	41.69M	100.34M	151.97M
Investing Cash Flow	-37.89M	-39.32M	-43.90M	-526.84M	-365.32M	-30.26M
Financing Cash Flow	-94.92M	-170.98M	-174.11M	472.50M	168.24M	-34.48M

Dorman Products Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 124.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 124.2 is below the 20-day moving average (MA) of 125.61, below the 50-day MA of 126.75, and below the 200-day MA of 133.67, indicating a bearish trend. The MACD of -0.72 indicates Negative momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of 43.78 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
GNTX	77 Outperform	$5.20B	13.66	15.36%	2.05%	2.99%	-9.80%
DORM	73 Outperform	$3.87B	15.53	18.19%	―	7.94%	34.84%
LEA	73 Outperform	$6.12B	14.45	8.96%	2.63%	-1.90%	-13.86%
VC	73 Outperform	$2.61B	8.60	23.16%	0.57%	-4.03%	-39.51%
LKQ	68 Neutral	$8.32B	12.07	10.87%	4.00%	-3.71%	-0.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	53 Neutral	$3.44B	66.73	-4.82%	1.70%	-18.23%	―

Dorman Products Corporate Events

Dorman Products announces broad senior leadership team changes

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 company that day as Senior Vice President, Chief Financial Officer Designate and Treasurer, succeeding retiring CFO David M. Hession once Dorman files its 2025 annual report, while Nathan J. Porter became Senior Vice President, Chief Operations Officer overseeing distribution, manufacturing, logistics, and sourcing. The company also promoted Eric B. Luftig, who has led product, engineering, quality, and manufacturing for the Light Duty business since 2021, to President, Light Duty, and appointed Steven A. Bashir as President, Heavy Duty, as part of a planned transition following John R. McKnight’s retirement, moves that collectively signal a deliberate refresh of Dorman’s leadership bench to support innovation, operational excellence, and long-term growth in the competitive aftermarket parts industry.

The most recent analyst rating on (DORM) stock is a Buy with a $150.00 price target. To see the full list of analyst forecasts on Dorman Products stock, see the DORM Stock Forecast page.