One-glance verdict
Overvalued
$44.77 our estimate vs market $126.63
Wall Street consensus: $162.38 (262.7% higher than our fair-value estimate)
183% above our estimate, beyond the bull case
Fundamentals snapshot
Dorman Products, Inc.
DORM · NMS · Consumer Cyclical · Auto Parts
Current price
$126.63
52-week range
$98.45 - $165.43
Market cap
$3.76B
Balance sheet
Healthy
12.47x Strong cushion
Net debt $396.27M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 1.2% last year.
- Reward Returns 15.0% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
Dorman Products, Inc.
Dorman Products sells replacement parts for cars and trucks that you would buy after an original part breaks, from engine components to door handles. The company makes its money by offering a huge variety of these "aftermarket" parts through auto part stores and repair shops. This matters because as long as vehicles need repairs, there's a steady and reliable demand for the essential products Dorman provides.
How the company got here
Dorman Products was founded in 1918 by two brothers, Jack and Lew Dorman, who saw a business opportunity in selling hard-to-find automotive hardware from salvaged vehicles. For decades, the company focused on expanding its range of replacement parts for the automotive aftermarket (the market for parts and services for vehicles after they are sold). Key turning points include the acquisition of Dayton Parts in 2021, which expanded Dorman into the heavy-duty truck parts market, and the 2022 acquisition of SuperATV, which gave the company a significant presence in specialty vehicle accessories. These moves have transformed Dorman from its core business of car parts into a more diversified supplier for various types of vehicles.
What it actually does
Dorman Products is a supplier of replacement parts for vehicles, but with a specific focus. Instead of making common, generic parts, Dorman specializes in identifying parts that frequently fail or are hard to find from the original car manufacturer and then creating a better or more affordable replacement. This means they sell everything from engine and suspension components to door handles and electronics for cars, trucks, and even off-road vehicles. Their products are sold through auto parts retailers, wholesale distributors, and repair shops to both professional mechanics and do-it-yourself car owners.
Light Duty
This is Dorman's largest and original business segment, making up the majority of its revenue. It focuses on providing replacement parts and hardware for passenger cars and light trucks. This includes a huge variety of products that you might need if your car breaks down, such as engine manifolds, control arms (part of the suspension system that connects the wheels to the car's frame), and window regulators. A key part of their strategy is offering what they call "OE FIX" solutions, which are parts redesigned to be better or easier to install than the original ones from the carmaker.
Heavy Duty
This segment provides aftermarket (parts made by companies other than the original vehicle manufacturer) parts for commercial trucks and trailers, like the big rigs you see on the highway. The products are geared towards the needs of trucking fleets and repair shops where getting a vehicle back on the road quickly is critical. This part of the business was significantly expanded with the acquisition of Dayton Parts and sells items like suspension components, coolant reservoirs, and lighting under the Dorman HD Solutions and Dayton Parts brands.
Specialty Vehicle
This is a newer and smaller, but growing, part of Dorman's business that was established with the purchase of SuperATV. It focuses on accessories and upgrade parts for powersports and off-road vehicles like UTVs (utility task vehicles). Unlike the other segments that focus on necessary repairs, this division caters more to enthusiasts who want to customize and improve their recreational vehicles. Products include items like upgraded windshields, suspension lifts, and other performance-enhancing parts.
What management is betting on now
Dorman's current strategy focuses on a few key areas. A major priority is to continue launching thousands of new and unique parts each year, particularly those that are difficult for consumers to find elsewhere, as this drives growth and sets them apart from competitors. They are also focused on growing their Heavy Duty and Specialty Vehicle segments to diversify their business beyond just passenger cars. Management is also making strategic acquisitions (buying other companies) to enter new product categories and expand their market reach. Finally, they are working on operational efficiencies to improve their profitability.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$35.74M
FY2024 Q4
$63.25M
FY2025 Q1
$40.25M
FY2025 Q2
$98.00K
FY2025 Q3
$1.82M
FY2025 Q4
$33.49M
FY2026 Q1
$35.31M
FY2026 Q2
$143.55M
Revenue
$544.60M
Net income
$87.77M
Diluted EPS
2.93
Operating cash flow
$152.62M
Free cash flow
$143.55M
Fetching…
Sources
Revenue
$528.77M
Net income
$43.55M
Diluted EPS
1.43
Operating cash flow
$43.76M
Free cash flow
$35.31M
Fetching…
Sources
Revenue
$537.93M
Net income
$11.56M
Diluted EPS
0.38
Operating cash flow
$41.64M
Free cash flow
$33.49M
Fetching…
Sources
Revenue
$543.74M
Net income
$76.42M
Diluted EPS
2.48
Operating cash flow
$12.21M
Free cash flow
$1.82M
Fetching…
Sources
Revenue
$540.96M
Net income
$58.71M
Diluted EPS
1.91
Operating cash flow
$8.55M
Free cash flow
$98.00K
Fetching…
Sources
Revenue
$507.69M
Net income
$57.51M
Diluted EPS
1.87
Operating cash flow
$51.24M
Free cash flow
$40.25M
Fetching…
Sources
Revenue
$533.77M
Net income
$54.51M
Diluted EPS
1.76
Operating cash flow
$71.42M
Free cash flow
$63.25M
Fetching…
Sources
Revenue
$503.77M
Net income
$55.25M
Diluted EPS
1.80
Operating cash flow
$44.29M
Free cash flow
$35.74M
Fetching…
Sources
Is it cheap or expensive?
Fair value $44.77 vs current price $126.63
Wall Street consensus is the average analyst price target: $162.38 (262.7% higher than our fair-value estimate).
Our most-likely fair value is $44.77 a share — about 64.6% below today's price of $126.63, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net debt $396.3M. Interest coverage 12.5x.
Net debt
$396.27M
Interest coverage
12.47x
Dorman Products, Inc.'s profit covers its interest bill about 12.5 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
DORM
BASELINE
Dorman Products, Inc.
Total debt $528.25M Interest coverage 12.47x This is the baseline the peer rows are being compared against.
Total debt $5.31B Interest coverage 4.85x -61% vs DORM Carries about 2.6x less debt cushion than DORM.
Total debt $2.22B Interest coverage 2.14x -83% vs DORM Carries about 5.8x less debt cushion than DORM.
Total debt $697.76M Interest coverage 4.44x -64% vs DORM Carries about 2.8x less debt cushion than DORM.
Total debt $680.16M Interest coverage 0.89x -93% vs DORM Carries about 14.0x less debt cushion than DORM.
Total debt $232.86M Interest coverage 1.22x -90% vs DORM Carries about 10.2x less debt cushion than DORM.
What you should know
The case for and against DORM
3 Rewards
0 Risks
Rewards
-
Revenue grew 1.2% last year.
-
Returns 15.0% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.59x
Forward P/E
13.71x
P/B
2.48x
P/S
1.74x
EV/EBITDA
9.88x
PEG ratio
1.17x
Profitability
How much profit each dollar creates
Gross margin
42.3%
Operating margin
23.6%
Net margin
10.2%
ROE
15.0%
ROA
9.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.35x
Current ratio
3.60x
Quick ratio
1.59x
Total debt
$528.25M
Total cash
$131.98M
Growth
How the business has been compounding
Revenue TTM
$2.16B
Revenue 5Y CAGR
12.2%
EPS TTM
7.20
EPS 5Y CAGR
19.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$250.23M
Free CF TTM
$75.67M
FCF margin
3.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2012-12-13