📊 DORM Key Takeaways
Is DORM a Good Investment? Thesis Analysis
Dorman Products demonstrates solid operational fundamentals with 42.1% gross margins and 14.1% operating margins, supported by 6% revenue growth and strong cash generation (75.7M free cash flow). The company maintains a conservative balance sheet with 0.30x debt-to-equity and exceptional 28.2x interest coverage, indicating financial stability despite a mature automotive parts market.
Why Buy DORM? Key Strengths
- Strong profitability with 42.1% gross margin and 9.6% net margin above automotive supplier industry averages
- Robust cash flow generation with $75.7M free cash flow and 3.6% FCF margin providing financial flexibility
- Excellent balance sheet health with 3.09x current ratio, 0.30x debt-to-equity, and 28.2x interest coverage indicating low financial risk
- Consistent revenue growth of 6% YoY with operational leverage demonstrated by 8.1% EPS growth despite flat net income YoY
DORM Investment Risks to Consider
- Flat net income growth (+0% YoY) despite 6% revenue growth suggests operational efficiency gains are not translating to bottom-line expansion
- Modest free cash flow margin of 3.6% and capital expenditure of $38M may limit reinvestment capacity relative to market opportunities
- Exposure to cyclical automotive industry with vulnerability to OEM production cuts and economic downturns affecting demand for vehicle parts
- Net margin of 9.6% is solid but relatively constrained, leaving limited cushion for cost inflation or competitive pricing pressure
Key Metrics to Watch
- Operating margin trend and ability to expand beyond current 14.1% amid cost pressures
- Revenue growth trajectory sustainability beyond 6% as market maturity may limit expansion
- Free cash flow conversion and capital allocation discipline to maximize shareholder returns
- Debt reduction progress and interest coverage maintenance if market conditions deteriorate
- Gross margin stability in face of raw material and labor cost volatility in manufacturing
DORM Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.6% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.09x current ratio provides a solid financial cushion.
DORM Profitability Ratios
DORM vs Default Sector
How Dorman Products, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DORM Overvalued or Undervalued?
Based on fundamental analysis, Dorman Products, Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DORM Balance Sheet & Liquidity
DORM 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Dorman Products, Inc.'s revenue has grown significantly by 58% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.10 reflects profitable operations.
DORM Growth Metrics (YoY)
DORM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $503.8M | $55.3M | $1.80 |
| Q2 2025 | $503.0M | $47.4M | $1.53 |
| Q1 2025 | $468.7M | $32.8M | $1.05 |
| Q3 2024 | $488.2M | $40.5M | $1.28 |
| Q2 2024 | $480.6M | $32.8M | $1.04 |
| Q1 2024 | $466.7M | $5.7M | $0.18 |
| Q3 2023 | $413.5M | $30.6M | $0.97 |
| Q2 2023 | $417.4M | $32.8M | $1.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DORM Capital Allocation
DORM SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Dorman Products, Inc. (CIK: 0000868780)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773692037.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772745292.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772745286.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772745281.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772745275.xml | View → |
❓ Frequently Asked Questions about DORM
What is the AI rating for DORM?
Dorman Products, Inc. (DORM) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DORM's key strengths?
Claude: Strong profitability with 42.1% gross margin and 9.6% net margin above automotive supplier industry averages. Robust cash flow generation with $75.7M free cash flow and 3.6% FCF margin providing financial flexibility.
What are the risks of investing in DORM?
Claude: Flat net income growth (+0% YoY) despite 6% revenue growth suggests operational efficiency gains are not translating to bottom-line expansion. Modest free cash flow margin of 3.6% and capital expenditure of $38M may limit reinvestment capacity relative to market opportunities.
What is DORM's revenue and growth?
Dorman Products, Inc. reported revenue of $2.1B.
Does DORM pay dividends?
Dorman Products, Inc. pays dividends, with $54.7M distributed to shareholders in the trailing twelve months.
Where can I find DORM SEC filings?
Official SEC filings for Dorman Products, Inc. (CIK: 0000868780) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DORM's EPS?
Dorman Products, Inc. has a diluted EPS of $6.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DORM a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Dorman Products, Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DORM stock overvalued or undervalued?
Valuation metrics for DORM: ROE of 13.8% (sector avg: 15%), net margin of 9.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy DORM stock in 2026?
Our dual AI analysis gives Dorman Products, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DORM's free cash flow?
Dorman Products, Inc.'s operating cash flow is $113.6M, with capital expenditures of $38.0M. FCF margin is 3.6%.
How does DORM compare to other Default stocks?
Vs Default sector averages: Net margin 9.6% (avg: 12%), ROE 13.8% (avg: 15%), current ratio 3.09 (avg: 1.8).