Dorman Products, Inc.

DORM

$130.08

+0.32%

N/A+$0.42

Consumer Cyclical

Auto - Parts

NASDAQ

Active Trading

Dorman Products, Inc. (DORM) is a global supplier within the automotive aftermarket, providing an extensive range of replacement parts and fasteners for ...

Fundamental Analysis of DORM

Key Strengths

Established brand portfolio (OE Solutions, HELP!, Conduct-Tite) with strong recognition in the aftermarket.

Broad product catalog covering engine, electronics, chassis, and hardware, meeting or exceeding OE specs.

Risk Factors

High dependence on consumer discretionary spending; economic downturns could reduce repair expenditures.

Inventory management challenges due to low inventory turnover (1.5) and long cash conversion cycle (~282 days).

Profitability

Net Margin10.18%

Operating Margin17.12%

Valuation

P/E Ratio17.86x

Current Ratio3.60

Efficiency

ROE14.76%

ROA8.77%

Fundamental Analysis of DORM

Dorman Products, Inc. is a leading supplier in the automotive aftermarket, providing a broad range of replacement parts and fasteners that often meet or exceed original equipment specifications. The company has a long history (since 1918) and a strong brand portfolio, including OE Solutions, HELP!, and Conduct-Tite, which are well-recognized in the industry. Revenue has shown resilience, with a focus on solutions-first innovation, particularly in hard-to-find parts and complex electronics, which provides a competitive edge. The company's financial metrics indicate solid profitability, with a net margin of 10.2%, operating margin of 17.1%, and EBITDA margin of 16.9%. Return on equity is strong at 14.8%, and return on assets is 8.8%, reflecting efficient use of capital. The balance sheet is conservative, with a debt-to-equity ratio of 34.9% and strong liquidity (current ratio of 3.6, quick ratio of 1.7). Free cash flow generation is healthy, with a free cash flow yield of 5.1% and a price-to-free-cash-flow ratio of ~19.7. The company pays a modest dividend, though its yield is low due to recent price appreciation. Analysts view the stock as a 'hold' with a score of 6, reflecting its stable fundamentals but modest near-term growth prospects. Risks include consumer cyclicality, inventory management challenges (inventory turnover is low at 1.5), and potential margin pressure from competition. However, long-term drivers like the aging vehicle fleet and increasing vehicle complexity support demand for aftermarket parts. With a beta of 0.98, the stock has average market sensitivity. Overall, DORM is a steady performer in a niche market, suitable for long-term investors seeking moderate growth and income.

Key Strengths of DORM

Established brand portfolio (OE Solutions, HELP!, Conduct-Tite) with strong recognition in the aftermarket.
Broad product catalog covering engine, electronics, chassis, and hardware, meeting or exceeding OE specs.
Focus on innovation and hard-to-find parts, creating high-margin niches that are difficult to disintermediate.
Extensive distribution network including online platforms, national distributors, and mass merchandisers.
Solid financial health: high current ratio (3.6), manageable debt (D/E ~35%), and consistent free cash flow generation.
Strong profitability metrics: net margin of 10.2%, ROE of 14.8%, and ROA of 8.8%.
Long operating history since 1918, indicating industry expertise and stability.
Recognition as a top workplace, aiding in talent retention and attraction.

Risk Factors of DORM

High dependence on consumer discretionary spending; economic downturns could reduce repair expenditures.
Inventory management challenges due to low inventory turnover (1.5) and long cash conversion cycle (~282 days).
Competition from other aftermarket suppliers and potential disruption from e-commerce or new technologies.
Exposure to raw material cost fluctuations and supply chain disruptions.
Moderate leverage and interest rate sensitivity despite current conservative debt levels.
Limited revenue growth potential in a mature market, with revenue growth not specified but market cap suggests modest growth.
Dependency on the automotive industry; shifts to electric vehicles may reduce demand for certain parts.
Potential regulatory changes affecting product standards or import tariffs.

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$3.89B

17.9x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin42.07%

Net Profit Margin10.18%

Debt/Equity Ratio0.35

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of DORM

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of DORM

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	16.12%	—	—	Flat
Operating Margin	—	21.34%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of DORM

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	3.598	—	—	Flat
Quick Ratio	—	1.726	—	—	Flat
Debt / Equity	—	0.349	—	—	Flat

Valuation of DORM

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	11.45x	—	—	Flat
P/B	—	2.65x	—	—	Flat

About UsPrivacy PolicyTerms of ServiceDisclaimerStock DirectoryETFsIndices13F HoldingsAnalyst TargetsFree ToolsTechnology MapJoin our Slack

Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer