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Dorman Products
(NASDAQ:DORM)
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Rating:66Neutral
Price Target:
$131.00
▲(2.18% Upside)
Action:Reiterated
Date:08/04/26
DORM scores highest on financial performance (strong growth, solid margins, and improving leverage), which is the primary support for the overall score. The score is held back by weak near-term technical signals and only moderate valuation (P/E ~21.3 with no dividend yield provided). Earnings-call commentary is supportive (raised EPS and margin outlook), but reduced sales guidance and reliance on one-time tariff refunds temper conviction.
Positive Factors
Strong revenue growth and profitability
Dorman is demonstrating meaningful scale in its replacement-parts platform, with strong revenue growth alongside healthy gross and operating margins. This combination indicates broad demand and operating capability, supporting continued investment in products, distribution, and category expansion over the next several quarters.
Negative Factors
Reduced sales growth outlook
The lower sales outlook indicates that near-term demand and volume growth are weaker than previously expected, even though management still projects expansion. Slower top-line growth can limit operating leverage, reduce the pace of earnings compounding, and make future margin improvement more dependent on execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and profitability
Dorman is demonstrating meaningful scale in its replacement-parts platform, with strong revenue growth alongside healthy gross and operating margins. This combination indicates broad demand and operating capability, supporting continued investment in products, distribution, and category expansion over the next several quarters.
Read all positive factors
Dorman Products Key Performance Indicators (KPIs)
Any
Revenue By Segment
Details revenue contributions from each business segment, indicating which areas are performing well and which may need strategic adjustments.
Details revenue contributions from each business segment, indicating which areas are performing well and which may need strategic adjustments.
Data provided by:
The Fly
The FlyDorman Products (DORM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.57B
Dividend Yield4.5%
Average Volume (3M)214.46K
Price to Earnings (P/E)16.7
Beta (1Y)0.82
Revenue Growth3.30%
EPS Growth-1.80%
CountryUS
Employees3,871
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)7.26
Shares Outstanding29,675,617
10 Day Avg. Volume269,619
30 Day Avg. Volume214,461
Financial Highlights & Ratios
PEG Ratio2.44
Price to Book (P/B)2.57
Price to Sales (P/S)1.78
P/FCF Ratio50.07
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue2.06
Enterprise Value/Gross Profit4.89
Enterprise Value/Ebitda11.73
Forecast
1Y Price Target
$159.40Price Target Upside24.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)8.67
Revenue Forecast (FY)$2.21B
Dorman Products Business Overview & Revenue Model
Company Description
Dorman Products, Inc. (DORM) is a global supplier within the automotive aftermarket, providing an extensive range of replacement parts and fasteners for passenger vehicles, light trucks, and heavy-duty commercial trucks. Their comprehensive produc...
How the Company Makes Money
Dorman primarily makes money by selling replacement automotive parts into the automotive aftermarket. Its revenue model is largely based on (1) developing and sourcing a wide assortment of repair parts, including “hard-to-find” or failure-prone co...
Dorman Products Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
Overall the call was positive: management reported record EPS, strong cash flow, an improved balance sheet and raised full-year EPS guidance despite lowering sales guidance. The company highlighted stabilization of the tariff environment, targeted price reductions, ongoing product innovation and opportunities for volume growth from new business wins. Offsetting these positives, comparable (ex-refund) margins and sales were weaker, Light Duty faced tougher volume comps, Heavy Duty market conditions remain challenged and some discretionary/DIY categories showed softness. Management expects margins and sales to normalize through H2 and provide a foundation for 2027.Positive Updates
Record earnings and strong cash generation
Consolidated Q2 net sales of $545M (up ~1% YoY); adjusted diluted EPS a record $3.08 (up 50% YoY). Adjusted operating income was $122M with an adjusted operating margin of 22.3% (up 600 bps YoY). Operating cash flow was $153M and free cash flow was $144M.
Negative Updates
Top-line guidance trimmed due to pricing actions and volume
Full-year net sales guidance cut from 7%–9% to 3%–5% reflecting Q1–H1 performance, targeted price reductions tied to the lower tariff environment, and lower Light Duty volume versus a strong prior-year comp (Q2 2025 Light Duty growth was 10%).
Read all updates
Q2-2026 Updates
Positive
Negative
Record earnings and strong cash generation
Consolidated Q2 net sales of $545M (up ~1% YoY); adjusted diluted EPS a record $3.08 (up 50% YoY). Adjusted operating income was $122M with an adjusted operating margin of 22.3% (up 600 bps YoY). Operating cash flow was $153M and free cash flow was $144M.
Read all positive updates
Company Guidance
Dorman updated its full‑year 2026 guidance to net sales growth of 3%–5% (down from prior 7%–9%) and adjusted diluted EPS of $8.50–$8.80 (up from $8.10–$8.50), with a onetime IEEPA refund benefit of ~$0.30 (comparable EPS excluding the benefit $8.20–$8.50; midpoint $8.35, up 10% vs. last year’s $7.62 and up 17% on a 2‑year stack). Management expects second‑half net sales growth in the mid‑single‑digit range (Light Duty mid‑single‑digit, Heavy Duty slightly above, Specialty Vehicles slightly below), full‑year adjusted operating income margin of ~15.5%–16.5% (vs. prior 15%–16%), gross margins to exit Q4 at ~40%, and back‑half adjusted diluted EPS of $3.85–$4.15 (up 9%–17% vs. the 2H'25 comparable of $3.54).Dorman Products Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
76
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.16B | 2.13B | 2.01B | 1.93B | 1.73B | 1.35B |
| Gross Profit | 906.63M | 876.16M | 806.36M | 685.42M | 564.45M | 462.92M |
| EBITDA | 378.26M | 359.75M | 352.68M | 271.29M | 216.46M | 207.12M |
| Net Income | 219.30M | 204.19M | 190.00M | 129.26M | 121.55M | 131.53M |
Balance Sheet | ||||||
| Total Assets | 2.50B | 2.49B | 2.42B | 2.29B | 2.34B | 1.67B |
| Cash, Cash Equivalents and Short-Term Investments | 131.98M | 49.44M | 57.14M | 36.81M | 46.03M | 58.78M |
| Total Debt | 528.25M | 633.05M | 572.78M | 683.80M | 848.46M | 301.87M |
| Total Liabilities | 985.12M | 1.02B | 1.13B | 1.12B | 1.30B | 740.38M |
| Stockholders Equity | 1.52B | 1.48B | 1.29B | 1.17B | 1.04B | 932.74M |
Cash Flow | ||||||
| Free Cash Flow | 214.17M | 75.67M | 191.63M | 164.79M | 3.81M | 80.50M |
| Operating Cash Flow | 250.23M | 113.63M | 231.05M | 208.76M | 41.69M | 100.34M |
| Investing Cash Flow | -28.85M | -37.97M | -39.32M | -43.90M | -526.84M | -365.32M |
| Financing Cash Flow | -146.32M | -83.69M | -170.98M | -174.11M | 472.50M | 168.24M |
Dorman Products Technical Analysis
Negative
128.21
Price Trends
128.55
Negative
129.73
Negative
123.42
Negative
Market Momentum
-1.62
Negative
37.73
Neutral
25.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DORM, the sentiment is Negative. The current price of 128.21 is above the 20-day moving average (MA) of 123.13, below the 50-day MA of 128.55, and above the 200-day MA of 123.42, indicating a bearish trend. The MACD of -1.62 indicates Negative momentum. The RSI at 37.73 is Neutral, neither overbought nor oversold. The STOCH value of 25.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DORM.
Dorman Products Risk Analysis
Dorman Products disclosed 40 risk factors in its most recent earnings report. Dorman Products reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dorman Products Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $819.22M | 16.13 | 7.36% | 3.55% | 11.32% | 27.67% | |
66 Neutral | $3.57B | 16.67 | 14.76% | 4.50% | 3.30% | -1.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $5.53B | 12.18 | 7.09% | 5.49% | -2.55% | -33.32% | |
52 Neutral | $299.15M | 28.52 | 2.30% | ― | 3.26% | ― | |
48 Neutral | $197.28M | -48.10 | -1.57% | ― | -0.82% | -353.36% | |
47 Neutral | $2.84B | -6.84 | -35.66% | ― | ― | 22.69% |
* Consumer Cyclical Sector Average
DORM
Dorman Products
120.40
-17.99
-13.00%
LKQ
LKQ
21.84
-6.07
-21.76%
MPAA
Motorcar Parts Of America
10.42
-4.96
-32.25%
SMP
Standard Motor Products
36.67
-0.31
-0.84%
QS
QuantumScape
4.58
-12.41
-73.04%
HLLY
Holley
2.49
-0.42
-14.43%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.