Dorman Products, Inc. (DORM) stock analysis

P/E below its 5-year median

Dorman Products's P/E of 19.7 is below its own 5-year median of 21.4.

P/E above the industry

Dorman Products's P/E of 19.7 is above the Motor Vehicles and Motor Vehicle Equipment median of 17.4.

EV/EBITDA below its 5-year median

Dorman Products's EV/EBITDA of 12.1 is below its 5-year median of 12.5.

P/B above the industry

Dorman Products's price-to-book of 2.49 is above the Motor Vehicles and Motor Vehicle Equipment median of 1.57.

Trading above fair value

The share price of $132.31 is above our fair value estimate of $111.29.

Margin of safety under 20%

The price is 18.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 7.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 19.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -18.2% over the last twelve months, against a 5-year average of 13.8% a year.

Growing slower than the industry

Revenue grew 2.2% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance lowered

Dorman Products lowered its full-year 2026 Net Sales Growth vs. 2025 outlook on Aug 3, 2026.

Gross margin slipping

Gross margin was 41.1% over the last twelve months, against 41.9% a year earlier.

Return on equity under 15%

Return on equity was 13.3% over the last twelve months and averaged 13.8% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 11.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Dorman Products's return on equity of 13.3% is above the Motor Vehicles and Motor Vehicle Equipment median of 3.5%.

Earnings grew over 5 years

Net income grew 13.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 9.3% over the last twelve months, against a 5-year average of 8.5%.

Net margin above the industry

Dorman Products's net margin of 9.3% is above the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

Low debt

Debt is 28.2% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 68.7% of total debt.

Interest well covered

Operating income covers interest expense 10.8 times.

Short-term assets cover short-term debts

Current assets are 3.65 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.91; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Dorman Products has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.