NasdaqGS:DORM

Stock Analysis Report

Executive Summary

Dorman Products, Inc. supplies automotive replacement parts, automotive hardware, and brake products to the automotive aftermarket and mass merchandise markets in the United States, Canada, Mexico, Europe, the Middle East, and Australia.

Snowflake

Fundamentals

Flawless balance sheet with limited growth.


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


Market Performance


7 Day Return

1.4%

DORM

3.3%

US Auto Components

0.5%

US Market


1 Year Return

21.0%

DORM

-2.4%

US Auto Components

6.8%

US Market

Return vs Industry: DORM exceeded the US Auto Components industry which returned -2.4% over the past year.

Return vs Market: DORM exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

DORMIndustryMarket
7 Day1.4%3.3%0.5%
30 Day2.5%2.7%-0.8%
90 Day0.5%1.1%-0.9%
1 Year21.0%21.0%-0.9%-2.4%9.2%6.8%
3 Year34.8%34.8%10.9%-0.5%45.6%36.2%
5 Year89.0%89.0%19.7%3.3%63.2%45.4%

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?

23.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DORM ($82.29) is trading above our estimate of fair value ($10)

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 (23.8x) compared to the Auto Components industry average (16.5x).

PE vs Market: DORM is poor value based on its PE Ratio (23.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: DORM is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: DORM is overvalued based on its PB Ratio (3.6x) 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?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DORM's forecast earnings growth (18.3% per year) is above the savings rate (2.7%).

Earnings vs Market: DORM's earnings (18.3% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: DORM's revenue (7.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: DORM's revenue (7.1% 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?

7.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DORM's earnings have grown by 7.6% 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 (-0.3%) over the past year, making it difficult to compare to the Auto Components industry average (8.1%).


Return on Equity

High ROE: DORM's Return on Equity (15.1%) is considered low.


Return on Assets

ROA vs Industry: DORM has a higher Return on Assets than the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: DORM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Dorman Products's financial position?


Financial Position Analysis

Short Term Liabilities: DORM's short term assets ($724.3M) exceeds its short term liabilities ($214.5M)

Long Term Liabilities: DORM's short term assets (724.3M) exceeds its long term liabilities (51.4M)


Debt to Equity History and Analysis

Debt Level: DORM is debt free.

Reducing Debt: DORM has not had any debt for past 5 years.

Debt Coverage: DORM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DORM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: DORM has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if DORM's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Dorman Products's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Kevin Olsen (47yo)

0.8yrs

Tenure

US$873,328

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.8yrs

Average Tenure

51yo

Average Age

Experienced Management: DORM's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

63yo

Average Age

Experienced Board: DORM's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Steven Berman (59yo)

    Founder & Executive Chairman

    • Tenure: 4.1yrs
    • Compensation: US$765.61k
  • David Cohen (58yo)

    Senior Vice President - Product

    • Tenure: 2.3yrs
  • Tom Knoblauch (62yo)

    Corporate Counsel

    • Tenure: 0.5yrs
  • Mike Ginnetti (42yo)

    VP & Corporate Controller

    • Tenure: 0.6yrs
    • Compensation: US$404.41k
  • Jeffery Darby (51yo)

    Senior Vice President of Sales & Marketing

    • Tenure: 8.7yrs
    • Compensation: US$673.79k
  • Mike Kealey (44yo)

    Executive Vice President of Commercial

    • Tenure: 8.7yrs
    • Compensation: US$1.53m
  • Kevin Olsen (47yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$873.33k
  • Mike Dempsey

    Senior Vice President of Supply Chain

    • Tenure: 2.3yrs
  • David Hession

    Senior VP & CFO

    • Tenure: 0.6yrs
  • Joseph Braun

    Senior VP & General Counsel

    • Tenure: 0.5yrs

Board Members

  • Mike Stakias (69yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$157.53k
  • Rich Riley (63yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$165.03k
  • Steven Berman (59yo)

    Founder & Executive Chairman

    • Tenure: 4.1yrs
    • Compensation: US$765.61k
  • Jack Gavin (63yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$157.53k
  • Paul Lederer (80yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$170.03k
  • Kelly Romano (57yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$150.03k
  • Kevin Olsen (47yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$873.33k

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$2.682b
  • Shares outstanding: 32.60m
  • 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 automotive replacement parts, automotive hardware, and brake products to the automotive aftermarket and mass merchandise markets in the United States, Canada, Mexico, Europe, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:56
End of Day Share Price2019/10/18 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.