NasdaqGS:DORM

Stock Analysis Report

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Executive Summary

Dorman Products, Inc. supplies replacement parts and fasteners for passenger cars, light trucks, and heavy duty trucks to the automotive aftermarket industry in the United States, Canada, Mexico, Europe, the Middle East, and Australia.


Snowflake Analysis

Adequate balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Dorman Products's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DORM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

DORM

3.4%

US Auto Components

2.4%

US Market


1 Year Return

-15.4%

DORM

-4.0%

US Auto Components

9.2%

US Market

Return vs Industry: DORM underperformed the US Auto Components industry which returned -4% over the past year.

Return vs Market: DORM underperformed the US Market which returned 9.2% over the past year.


Shareholder returns

DORMIndustryMarket
7 Day7.9%3.4%2.4%
30 Day19.0%24.2%10.2%
90 Day19.7%5.9%3.4%
1 Year-15.4%-15.4%-2.7%-4.0%11.6%9.2%
3 Year-12.8%-12.8%-20.4%-28.7%33.7%24.9%
5 Year44.2%44.2%-12.2%-25.1%59.7%41.8%

Price Volatility Vs. Market

How volatile is Dorman Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dorman Products undervalued compared to its fair value and its price relative to the market?

28.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DORM ($72.03) is trading above our estimate of fair value ($12.13)

Significantly Below Fair Value: DORM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DORM is poor value based on its PE Ratio (28.2x) compared to the Auto Components industry average (14.4x).

PE vs Market: DORM is poor value based on its PE Ratio (28.2x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: DORM is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: DORM is overvalued based on its PB Ratio (2.9x) compared to the US Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Dorman Products forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DORM's forecast earnings growth (8.1% per year) is above the savings rate (2.2%).

Earnings vs Market: DORM's earnings (8.1% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: DORM's earnings are forecast to grow, but not significantly.

Revenue vs Market: DORM's revenue (5.8% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: DORM's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DORM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Dorman Products performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DORM has high quality earnings.

Growing Profit Margin: DORM's current net profit margins (8.3%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: DORM's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: DORM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DORM had negative earnings growth (-34.3%) over the past year, making it difficult to compare to the Auto Components industry average (5.2%).


Return on Equity

High ROE: DORM's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is Dorman Products's financial position?


Financial Position Analysis

Short Term Liabilities: DORM's short term assets ($854.3M) exceed its short term liabilities ($314.5M).

Long Term Liabilities: DORM's short term assets ($854.3M) exceed its long term liabilities ($46.9M).


Debt to Equity History and Analysis

Debt Level: DORM's debt to equity ratio (12.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DORM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: DORM's debt is well covered by operating cash flow (98.4%).

Interest Coverage: Insufficient data to determine if DORM's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Dorman Products's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DORM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DORM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DORM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DORM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DORM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Kevin Olsen (47yo)

1.42yrs

Tenure

US$2,150,123

Compensation

Mr. Kevin M. Olsen has been President of Dorman Products, Inc. since August 6, 2018 and serves as its Chief Executive Officer and Director since January 1, 2019. He served as Chief Operating Officer of Dor ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD2.15M) is below average for companies of similar size in the US market ($USD4.72M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Berman
Founder & Executive Chairman4.75yrsUS$668.10k3.68% $85.4m
Kevin Olsen
President1.42yrsUS$2.15m0.11% $2.7m
David Hession
Senior VP1.25yrsUS$1.26m0.0089% $205.7k
Joseph Braun
Senior VP1.17yrsUS$766.75k0.0078% $180.6k
Michael Kealey
Executive Vice President of Commercial3yrsUS$758.13k0.092% $2.1m
John McKnight
Senior Vice President of Global Operations0.58yrno datano data
Jeffery Darby
Senior Vice President of Sales & Marketing0.58yrUS$673.79k0.080% $1.9m
David Cohen
Senior Vice President - Product3yrsno datano data
Michael Dempsey
Senior Vice President of Supply Chain3yrsno datano data

1.3yrs

Average Tenure

50yo

Average Age

Experienced Management: DORM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Steven Berman
Founder & Executive Chairman4.75yrsUS$668.10k3.68% $85.4m
Kevin Olsen
President1.42yrsUS$2.15m0.11% $2.7m
G. Stakias
Independent Director4.75yrsUS$185.01k0.019% $435.1k
Richard Riley
Independent Director10.25yrsUS$195.01k0.067% $1.5m
John Gavin
Independent Director3.67yrsUS$190.01k0.023% $541.2k
Paul Lederer
Lead Independent Directorno dataUS$195.01k0.12% $2.8m
Kelly Romano
Independent Director2.58yrsUS$175.01k0.010% $240.5k

4.2yrs

Average Tenure

63yo

Average Age

Experienced Board: DORM's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DORM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dorman Products, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dorman Products, Inc.
  • Ticker: DORM
  • Exchange: NasdaqGS
  • Founded: 1978
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$2.322b
  • Shares outstanding: 32.23m
  • Website: https://www.dormanproducts.com

Number of Employees


Location

  • Dorman Products, Inc.
  • 3400 East Walnut Street
  • Colmar
  • Pennsylvania
  • 18915
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DORMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1991
RABDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1991

Biography

Dorman Products, Inc. supplies replacement parts and fasteners for passenger cars, light trucks, and heavy duty trucks to the automotive aftermarket industry in the United States, Canada, Mexico, Europe, the Middle East, and Australia. 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 fasteners, including oil drain plugs, and wheel bolts and lug nuts. The company provides automotive replacement parts comprising door handles, keyless remotes and cases, and door hinge repairs; and heavy duty aftermarket parts for class 4-8 vehicles comprising lighting, cooling, engine management, wheel hardware, air tanks, and cab products. It offers power-train product, including cooling products, harmonic balancers, fluid lines and reservoirs, connectors, 4-wheel drive components, other engine, and transmission and axle components; and chassis products consisting of control arms, brake hardware and hydraulics, axle hardware, suspension arms, knuckles, links, bushings, and other suspension, steering, and brake components. The company provided automotive body products, such as window lift motors, switches and handles, wiper, and other interior and exterior automotive body components; and hardware products comprising threaded bolts; auto body and home electrical wiring components; and other hardware assortments and merchandise. It offers its products under the OE Solutions, HELP!, and HD Solutions brands through automotive aftermarket retailers, including 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 1978 and is headquartered in Colmar, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 11:43
End of Day Share Price2020/06/03 00:00
Earnings2020/03/28
Annual Earnings2019/12/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.