Dorman Products (DORM) AI Stock Analysis

• Market Cap: $4.39B
• Dividend Yield: N/A
• Average Volume (3M): 160.57K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.75
• Revenue Growth: 6.76%
• EPS Growth: 34.97%
• Country: US
• Employees: 3,787
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.06
• Shares Outstanding: 30,534,243
• 10 Day Avg. Volume: 195,961
• 30 Day Avg. Volume: 160,568
• 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: 0.98
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 5.06
• Enterprise Value/Ebitda: 11.05
• 1Y Price Target: $178.50
• Price Target Upside: 24.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: $167.00 ▲(16.13% Upside)

Dorman Products' strong financial performance and positive earnings call outlook are the most significant factors driving the score. The company's strategic initiatives and improved guidance reflect its resilience and growth potential. Technical indicators suggest mixed momentum, while valuation remains reasonable. The absence of corporate events does not impact the overall assessment.

Positive Factors

Revenue Growth

The 8% year-over-year sales growth indicates strong demand and market presence, particularly in the light-duty segment, supporting long-term revenue expansion.

Margin Expansion

The increase in operating margin reflects effective cost management and pricing strategies, which enhance profitability and competitive advantage.

Guidance Increase

The upward revision of sales and EPS guidance demonstrates confidence in strategic initiatives and market conditions, indicating robust future performance.

Negative Factors

Free Cash Flow Decline

The decline in free cash flow growth could limit investment capabilities and financial flexibility, affecting long-term growth opportunities.

Tariff Impact

Tariff costs have significantly impacted cash flow, posing challenges to cost management and potentially affecting profitability and cash reserves.

Heavy-Duty Segment Challenges

Economic uncertainty and tariffs are limiting growth in the heavy-duty segment, which may hinder overall market diversification and revenue potential.

Dorman Products Business Overview & Revenue Model

Company Description

Dorman Products, Inc. (DORM) is a leading provider of aftermarket automotive parts and accessories, primarily focused on the automotive replacement parts market. The company serves various sectors, including passenger vehicles, heavy-duty trucks, and automotive repair shops. Dorman specializes in offering a wide range of products, including brake parts, engine components, electrical systems, and body parts, with a particular emphasis on hard-to-find or obsolete items that provide customers with a one-stop solution for their automotive needs.

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: 143.81
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 143.81 is below the 20-day moving average (MA) of 147.63, below the 50-day MA of 154.45, and above the 200-day MA of 132.14, indicating a neutral trend. The MACD of -2.97 indicates Negative momentum. The RSI at 50.05 is Neutral, neither overbought nor oversold. The STOCH value of 81.04 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	81 Outperform	$3.13B	10.85	22.96%	0.24%	-3.26%	-45.84%
DORM	75 Outperform	$4.39B	19.57	17.38%	―	6.76%	34.97%
LEA	73 Outperform	$5.27B	11.62	9.51%	3.11%	-3.12%	-8.23%
LKQ	70 Outperform	$7.75B	11.04	11.20%	3.92%	-3.02%	-1.02%
GNTX	66 Neutral	$5.80B	14.99	16.38%	1.82%	2.43%	-1.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	61 Neutral	$2.54B	―	-5.00%	2.02%	-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.