Dorman Products (DORM) AI Stock Analysis

• Market Cap: $3.88B
• Dividend Yield: N/A
• Average Volume (3M): 189.41K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.72
• Revenue Growth: 6.03%
• EPS Growth: 40.36%
• Country: US
• Employees: 3,787
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Parts
• EPS (TTM): 2.02
• Shares Outstanding: 30,511,173
• 10 Day Avg. Volume: 167,444
• 30 Day Avg. Volume: 189,408
• PEG Ratio: -3.32
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 668.09
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 4.00
• Enterprise Value/Ebitda: 2.25
• 1Y Price Target: $149.00
• Price Target Upside: 16.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $147.00 ▲(14.63%Upside)

Dorman Products holds a solid overall stock score, driven by robust financial performance marked by revenue and margin growth. The positive sentiment from the earnings call, with emphasis on light duty segment success and effective debt management, further boosts confidence. However, technical indicators point to potential overbought conditions, and the valuation suggests limited upside. The absence of dividends may deter income-seeking investors. Challenges in heavy duty and specialty vehicle segments due to tariffs and economic uncertainties are notable risks.

Positive Factors

Earnings

DORM's Q1/25 results were better than expectations and consensus estimates, driven by the Light-Duty segment.

Market Share

Net sales growth of 8.3% was greater than the low- to mid-single digit market growth, indicating market share gains.

Negative Factors

Market Challenges

The Heavy Duty segment will continue to be negatively impacted by a weak Class 8 trucking market.

Segment Performance

Sales in both Heavy Duty and Specialty Vehicle segments experienced declines, leading to decreased operating profits.

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 parts and accessories to the aftermarket industry. The company's business model revolves around identifying common automotive failures and developing proprietary solutions to address these issues, which are then sold to retailers, warehouse distributors, and specialty markets. Key revenue streams include sales of replacement parts and components, which are designed to be cost-effective alternatives to original equipment parts. Partnerships with major automotive retailers and distribution networks also play a crucial role in facilitating product reach and availability, thereby contributing significantly to Dorman's earnings.

Dorman Products Financial Statement Overview

Summary

Dorman Products demonstrates strong financial health with significant revenue and profit growth, efficient cash flow management, and improved profitability margins. Despite increased leverage, the company maintains a sound balance sheet with effective debt management. Future focus should include improving EBIT margin and maintaining free cash flow stability.

Income Statement

Dorman Products shows a strong income statement with notable revenue growth, increasing from $1,092.7M in 2020 to $2,048.2M in TTM (Trailing-Twelve-Months) 2025, indicating robust business expansion. The gross profit margin improved from 35.1% in 2020 to 40.7% in TTM 2025, showcasing better operational efficiency. Net profit margin has also strengthened from 9.8% in 2020 to 10.5% in TTM 2025. However, EBIT margin remains moderate and could be improved.

Balance Sheet

The balance sheet reflects a stable financial position with a decreasing debt-to-equity ratio from 0.43 in 2020 to 0.42 in TTM 2025, suggesting effective debt management. Return on Equity (ROE) improved from 12.5% in 2020 to 16.1% in TTM 2025, indicating enhanced shareholder returns. However, the equity ratio has decreased slightly from 69.9% in 2020 to 55.1% in TTM 2025, suggesting increased leverage.

Cash Flow

Cash flow analysis shows a positive trend with free cash flow increasing from $136.5M in 2020 to $190.7M in TTM 2025. Operating cash flow to net income ratio remains healthy, indicating efficient cash generation relative to profits. However, potential risks include fluctuating capital expenditures impacting free cash flow stability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.05B	2.01B	1.93B	1.73B	1.35B	1.09B
	Gross Profit
832.62M	806.36M	685.42M	564.45M	462.92M	383.12M
	EBIT
324.47M	292.91M	214.76M	127.11M	171.55M	101.07M
	EBITDA
392.19M	352.68M	271.29M	275.66M	221.81M	133.37M
	Net Income Common Stockholders
214.68M	190.00M	129.26M	121.55M	131.53M	106.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
60.61M	57.14M	36.81M	46.03M	58.78M	155.58M
	Total Assets
2.43B	2.42B	2.29B	2.34B	1.67B	1.22B
	Total Debt
562.94M	572.78M	683.80M	832.55M	291.80M	37.08M
	Net Debt
502.33M	515.64M	646.99M	786.51M	233.02M	-118.49M
	Total Liabilities
1.09B	1.13B	1.12B	1.30B	740.38M	367.10M
	Stockholders Equity
1.34B	1.29B	1.17B	1.04B	932.74M	853.56M
Cash Flow		Free Cash Flow
190.65M	191.63M	164.79M	3.81M	80.50M	136.52M
	Operating Cash Flow
230.30M	231.05M	208.76M	41.69M	100.34M	151.97M
	Investing Cash Flow
-39.55M	-39.32M	-43.90M	-526.84M	-365.32M	-30.26M
	Financing Cash Flow
-164.22M	-170.98M	-174.11M	472.50M	168.24M	-34.48M

Dorman Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 128.24
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 128.24 is above the 20-day moving average (MA) of 127.95, above the 50-day MA of 121.19, and above the 200-day MA of 124.26, indicating a bullish trend. The MACD of 1.34 indicates Positive momentum. The RSI at 56.78 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 is Neutral, 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
BWA	76 Outperform	$7.40B	27.08	5.38%	1.32%	-8.22%	-52.61%
LEA	75 Outperform	$5.03B	11.02	10.00%	3.29%	-3.15%	-6.70%
DORM	74 Outperform	$3.88B	18.42	17.09%	―	6.03%	40.36%
MOD	73 Outperform	$4.93B	28.44	22.20%	―	4.87%	-29.43%
LKQ	70 Outperform	$10.17B	14.72	11.37%	3.07%	-0.74%	-13.75%
GNTX	66 Neutral	$4.96B	12.92	15.90%	2.18%	-1.66%	-9.20%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%

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.

The most recent analyst rating on (DORM) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Dorman Products stock, see the DORM Stock Forecast page.

Dorman Products Appoints New Chief Accounting Officer

On May 19, 2025, Dorman Products appointed Gregory Bowen as Vice President, Chief Accounting Officer, and principal accounting officer, marking a significant leadership change. The 2025 Annual Meeting of Shareholders, held on May 16, 2025, resulted in the election of eight directors, approval of executive compensation, and ratification of KPMG LLP as the independent auditor, reflecting shareholder support for the company’s governance and financial strategies.

The most recent analyst rating on (DORM) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Dorman Products stock, see the DORM Stock Forecast page.