Dorman Products, Inc.

Dorman Products, Inc.

DORMยทNASDAQ

$124.75

+0.12%
Consumer CyclicalAuto - Parts

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.

At a Glance

Live Snapshot
Market Cap$3.73B
EPS6.6400
P/E Ratio18.79
Earnings Date08/03/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 18.8).

Valuation inputs: P/E 18.8, earnings yield +5.3%, momentum +0.1%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +13.8%, ROIC +13.0%).

Profitability stack: net margin +9.6%, ROE +13.8%, ROIC +13.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +40.8%, momentum +0.1%, net margin +9.6%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Dorman Products, Inc. Market vs Earnings Trajectory

DORM ยท NASDAQ

Loading price and EPS data...

Dorman Products, Inc.

Dorman Products, Inc. Fair Value Envelope

DORM ยท NASDAQ

Our analysis suggests that DORM has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $124.75, this represents a potential HIDDEN relative to our calculated worth for Dorman Products, Inc..

Intrinsic Value
Current Price: $124.75
3Y+72.0%
5Y+101.0%
10Y+116.0%
3Y+23.0%
5Y+95.0%
10Y+148.0%
3Y+68.0%
5Y+91.0%
10Y+93.0%
3Y+173.0%
5Y-25.0%
10Y-7.0%
3Y+1889.0%
5Y-45.0%
10Y-25.0%
3Y+6.0%
5Y+104.0%
10Y+250.0%
Dorman Products, Inc.

Dorman Products, Inc. Profit Bridge

DORM ยท NASDAQ
Revenue2.13B
Cost of Goods Sold (1.25B)
Gross Profit876.16M
Operating Expenses (518.46M)
Operating Income357.70M
Interest Expense (28.57M)
Other Income/Expense-82.25M
Pretax Income275.44M
Income Tax (71.25M)
Net Income204.19M
Net Income
204.19M

Profitability Analysis

Gross Margin

41.1%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

16.8%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

9.6%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

25.9%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

41.13%
Gross Profit Margin
2%
3Y+26.0%
5Y+17.0%
10Y+5.0%
16.79%
Operating Profit Margin
15%
3Y+70.0%
5Y+38.0%
10Y-14.0%
9.59%
Net Profit Margin
1%
3Y+37.0%
5Y-2.0%
10Y-22.0%
13.82%
Return on Equity
-6%
3Y+19.0%
5Y+10.0%
10Y-22.0%
8.19%
Return on Assets
5%
3Y+58.0%
5Y-6.0%
10Y-45.0%
13.01%
Return on Invested Capital
13%
3Y+89.0%
5Y+11.0%
10Y-26.0%
DORM

Dorman Products, Inc. Cash Conversion Engine

DORM ยท NASDAQ
Net Income204.19M
Depreciation & Amortization55.73M
Stock-Based Compensation19.64M
Change in Working Capital-229.12M
Others57.04M
Capital Expenditures-37.97M
Free Cash Flow75.67M

Cash Flow Quality Analysis

FCF Conversion Rate

37.1%

Weak cash conversion. Significant portion of earnings not converting to cashโ€”review working capital trends and capital intensity.

CapEx Intensity

33.4%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

-60.5%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$229.12M

Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extensionโ€”monitor closely.

Cash Flow Quality Insight

Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.

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Dorman Products, Inc. Funding & Solvency Profile

DORM ยท NASDAQ
Cash & Cash Equivalents43.06M
Net Receivables503.03M
Inventory902.42M
Other Current Assets26.90M
Total Current Assets1 B
Property, Plant & Equipment276.78M
Goodwill & Intangible Assets639.12M
Long-Term Investments0.00
Other Non-Current Assets43.84M
Total Non-Current Assets321 M
Total Assets
2.44B

Financial Health Analysis

Current Ratio

3.29x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.66x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

1 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

61% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Dorman Products, Inc. Street Expectations Map

DORM ยท NASDAQ

Wall Street analysts project that DORM stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 140.00, with estimates ranging from a low of 140.00 to a high of 140.00.

Lowest Target
140.00
12.22%
Consensus Target
140.00
12.22%
Highest Target
140.00
12.22%

The consensus 1-year price target stands at 140.00, with estimates ranging from a low of 140.00 to a high of 140.00.

Analyst Consensus Analysis

Upside Potential

+12.2%

Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

High

Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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Dorman Products, Inc. Insider Positioning

DORM ยท NASDAQ

During the last 12 months, insiders have sold $1.73M worth of DORM shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

318

32.50K

Net Activity

-32K

-$32K

3-6 Months

Bought

0

0.00

Sold

2.1K

264.10K

Net Activity

-264K

-$264K

6-9 Months

Bought

0

0.00

Sold

8.3K

1.15M

Net Activity

-1.1M

-$1.15M

9-12 Months

Bought

0

0.00

Sold

2.0K

281.92K

Net Activity

-282K

-$282K

Top Buyers

No buying activity

Top Sellers

1
MJ

Mcknight John

Officer: President, Heavy Duty

6.0K sharesโ€ข2 transactions

$778K

2
HD

Hession David

Officer: Svp And Cfo

2.9K sharesโ€ข1 transactions

$390K

3
LDM

Long Donna M.

Officer: Svp, Cio

2.4K sharesโ€ข4 transactions

$321K

4
BGC

Bowen Gregory C.

Officer: Vp, Chief Accounting Officer

1.5K sharesโ€ข1 transactions

$237K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $1.73M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$32K

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

4 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

No Dividend Yield Data

DORM has not reported any dividend yield values in the available annual periods.

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dorm Dividend History

DORM
10Y CAGR +0%
Latest $1.5
Annual $1.5
Stable dividend payments
Last Period: +0%