Dorman Products (DORM) AI Stock Analysis

• Market Cap: $4.74B
• Dividend Yield: N/A
• Average Volume (3M): 172.02K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.70
• 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: 151,124
• 30 Day Avg. Volume: 172,017
• 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: 0.91
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 5.06
• Enterprise Value/Ebitda: 11.05
• 1Y Price Target: $181.83
• Price Target Upside: 17.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: $184.00 ▲(18.48% Upside)

Dorman Products receives a strong overall score due to its robust financial performance and positive earnings call, which highlighted significant revenue growth and improved guidance. However, technical indicators suggest the stock may be overbought, and valuation metrics indicate moderate pricing. The absence of a dividend yield and cash flow challenges are areas to watch.

Positive Factors

Revenue Growth

The 8% YoY revenue growth indicates strong demand and effective market strategies, supporting long-term business expansion and market position.

Margin Expansion

Improved margins reflect efficient cost management and pricing strategies, enhancing profitability and competitive edge over time.

Positive Guidance

Upward revision of sales and EPS guidance underscores confidence in strategic initiatives and market conditions, indicating robust future prospects.

Negative Factors

Free Cash Flow Decline

Reduced cash flow growth may limit investment capabilities and flexibility, potentially impacting long-term strategic initiatives and financial health.

Tariff Impact on Cash Flow

Tariff-related cash flow challenges could strain financial resources, affecting operational efficiency and strategic investments in the long run.

Challenges in Heavy-Duty Segment

Minimal growth in the heavy-duty segment suggests market vulnerabilities, potentially hindering overall growth and diversification efforts.

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 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: 155.30
• 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 155.3 is below the 20-day moving average (MA) of 159.37, above the 50-day MA of 147.66, and above the 200-day MA of 131.07, indicating a neutral trend. The MACD of 1.04 indicates Positive momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of 27.03 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
MOD	77 Outperform	$7.28B	39.73	20.22%	―	6.45%	14.21%
LEA	76 Outperform	$5.40B	11.85	9.24%	3.04%	-3.12%	-8.23%
DORM	76 Outperform	$4.74B	21.13	17.38%	―	6.76%	34.97%
LKQ	69 Neutral	$7.80B	11.13	10.88%	3.96%	-3.02%	-1.02%
BWA	67 Neutral	$9.53B	47.02	3.55%	1.14%	-2.12%	-69.42%
GNTX	66 Neutral	$6.34B	16.38	―	1.66%	2.43%	-1.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.