# Dorman Products (DORM.US)

Canonical: https://gigainvestors.com/s/DORM

Analysis as of: 2026-10-16T07:28:04.904Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $123.63 per share; close as of 2026-10-15.

Estimated value: low $102.93 per share, central $142.99 per share, high $167.30 per share. Buy at or below the central value $142.99 per share. Valuation as of 2026-10-16T07:28:04.904Z; scenarios are not confidence intervals.

Expected annual return: 11.1% at the stated quote. About 11.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.20×

- FY2018: 0.18×

- FY2019: 0.11×

- FY2020: 0.12×

- FY2021: 0.13×

- FY2022: 0.10×

- FY2023: 0.11×

- FY2024: 0.15×

- FY2025: 0.17×

- LTM to Jun 2026: 0.17×

### moat: pass

- ROIC, median of available years: 15.9%

- ROIC, second-lowest year: 12.0%

- Typical minus recent gross margin: -4.2 pp

- Typical gross margin (annual median): 36.9%

- Recent gross margin (lower of latest and 3-year median): 41.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.1%

- ROIC including acquisitions, ten-year median: 11.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 23.0%

- FY2018: 21.8%

- FY2019: 12.6%

- FY2020: 16.3%

- FY2021: 13.6%

- FY2022: 9.5%

- FY2023: 12.0%

- FY2024: 15.9%

- FY2025: 15.8%

- LTM to Jun 2026: 17.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.09×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $844M

- Net income, five-year total: $777M

- Return on incremental invested capital: 20.3%

- Working capital / revenue, annual change: 1.4 pp

- Working capital / revenue, change between three-year averages: 8.4 pp

- Working capital / revenue, final three-year average: 54.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.12×

- FY2022: 1.06×

- FY2023: 1.08×

- FY2024: 1.09×

- FY2025: 1.09×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 23.0% vs 15.8%

- Per-share earnings: 3.07 to 6.14 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.4%

- Ordinary dilution, 5-year annual growth: -1.0%

- Market cap gain: $1.2B

- Cumulative retained earnings: $787M

- Diluted shares, 10-year annual growth: -1.4%

- Diluted shares, 5-year annual growth: -1.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 9.1%

- Per-share value change: $3.07

- Per-share value, starting three-year median: $3.07

- Per-share value, ending three-year median: $6.14

- Buybacks concentrated in cheaper years (correlation): -0.12

- Average buyback yield: 1.6%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $738M

- Cumulative net income, 10 years: $1.3B

- ROIC, first three-year median: 23.0%

- ROIC, last three-year median: 15.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.07

- FY2017: $3.13

- FY2018: $4.02

- FY2019: $2.56

- FY2020: $3.30

- FY2021: $4.12

- FY2022: $3.85

- FY2023: $4.10

- FY2024: $6.14

- FY2025: $6.64

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 3.6%

- Receivables to sales index (DSRI): 0.79×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 17.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.56×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.44×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.2%

- FY2017: 1.6%

- FY2018: 6.2%

- FY2019: -1.1%

- FY2020: -3.7%

- FY2021: 1.9%

- FY2022: 3.4%

- FY2023: -3.5%

- FY2024: -1.7%

- FY2025: 3.6%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 24% since Aug 2025 · sales +1.2%

Story as of 2026-10-16T09:58:39.062Z; price observation 2026-10-15.

Price needs cash profits to grow 4.1% a year for ten years

- 2025-08-04: Dorman Products Inc (NASDAQ:DORM) Exceeds Q2 2025 Expectations and Raises Full-Year Guidance ([chartmill.com](https://www.chartmill.com/news/DORM/Chartmill-32236-Dorman-Products-Inc-NASDAQDORM-Exceeds-Q2-2025-Expectations-and-Raises-Full-Year-Guidance))

### Sales · FY2025–2026

sales +1.2%; source https://www.sec.gov/Archives/edgar/data/868780/000086878026000014/dorm-20251231.htm; observed 2026-02-27.

- FY2017: $903M 

- FY2018: $974M 

- FY2019: $991M 

- FY2020: $1.1B 

- FY2021: $1.3B 

- FY2022: $1.7B 

- FY2023: $1.9B 

- FY2024: $2.0B 

- FY2025: $2.1B 

- FY2026: $2.2B 

### Gross margin · FY2026

gross margin 42.1%; source https://www.sec.gov/Archives/edgar/data/868780/000086878026000014/dorm-20251231.htm; observed 2026-02-27.

- FY2017: 39.7% 

- FY2018: 38.3% 

- FY2019: 34.3% 

- FY2020: 35.1% 

- FY2021: 34.4% 

- FY2022: 32.6% 

- FY2023: 35.5% 

- FY2024: 40.1% 

- FY2025: 41.1% 

- FY2026: 42.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in auto parts; annual sales are USD 2.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/868780/000086878026000014/dorm-20251231.htm (filed 2026-02-27); FY2025: revenue 2130319000; grossProfit 876157000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DORM.US: Dorman Products, Inc. supplies replacement and upgrade parts for the motor vehicle aftermarket industry in the United States and internationally. It operates through segments Light Duty, Heavy Duty, and Specialty Vehicle segments. The company offers engine products, including intake and exhaust manifolds, oil filters and coolers, fans, thermostat housings, and throttle bodies; undercar products, such as fluid lines, fluid reservoirs, connectors, 4-wheel drive components and axles, drain plugs, other engine, transmission, and axle components; steering and suspension products comprising control arms, ball joints, tie-rod ends, brake hardware and hydraulics, wheel and axle hardware, suspension arms, knuckles, links, bushings, and leaf springs, as well as other suspension, steering, and brake components; body products, including door handles and hinges, window lift motors, window regulators, switches and handles, wiper components, lighting, electrical, and other interior and exterior vehicle body components, including windshields for UTVs; electronics products, such as new and remanufactured modules, clusters and sensors; and hardware products consisting of threaded bolts and auto body fasteners, automotive and home electrical wiring components, and other hardware assortments and merchandise. It also provides OE FIX solutions, including exhaust manifolds, metal heater hose connectors, and aluminum oil filter housings; and intake manifolds, exhaust manifolds, oil filters and coolers, exhaust gas recirculation coolers, driveshafts, UTV windshields, and complex electronics modules. The company markets its products under the DORMAN, DORMAN OE FIX, HELP!, Conduct-Tite, Dayton Parts, SuperATV, Keller Performance Products, Assault Industries, Gboost, and GDP brands through aftermarket retailers, dealers, and national, regional, and local wholesale distributors and specialty markets. Dorman Products, Inc. was founded in 1918 and is headquartered in Colmar, Pennsylvania.

### Why customers stay

Margins ranged from 35.5% to 41.1% during 2023–25; it earns 15.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 35.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 40.1%.

- Source: https://www.sec.gov/Archives/edgar/data/868780/000086878026000014/dorm-20251231.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 41.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2017,0.23044072119843015],[2018,0.21847155459300294],[2019,0.1258218800119849],[2020,0.16306180916097127],[2021,0.13583684007457367],[2022,0.0949359613016536],[2023,0.1201359877606963],[2024,0.15896639757452322],[2025,0.15846668877421785],[2026,0.17919170250202554]]; median 0.15871654317437053. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 2 of 10 years; bought back USD 40.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2016: growth capex 1152000; upkeep 18907000; owner earnings 106049000. Growth capex / owner earnings = 0.010862902997670888.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 2226000; upkeep 22224000; owner earnings 106599000. Growth capex / owner earnings = 0.02088199701685757.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 0; upkeep 26106000; owner earnings 135887000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 1940151.8542827964; upkeep 27619848.145717204; owner earnings 82057151.8542828. Growth capex / owner earnings = 0.023643909280791523.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 0; upkeep 15450000; owner earnings 123727000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 0; upkeep 19840000; owner earnings 146885000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 0; upkeep 37883000; owner earnings 128343000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: growth capex 0; upkeep 43968000; owner earnings 140020000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: growth capex 0; upkeep 39421000; owner earnings 207283000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/868780/000086878026000014/dorm-20251231.htm (filed 2026-02-27); FY2025: growth capex 0; upkeep 37969000; owner earnings 221957000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,1184000],[2021,2455000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/868780/000086878026000014/dorm-20251231.htm (filed 2026-02-27); FY2025: cash repurchases 40591000 USD.

### Are managers owners

Insiders own 12.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DORM.US SharesStats.PercentInsiders = 12.867 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/868780/000086878026000014/dorm-20251231.htm (filed 2026-02-27); ue relative to those foreign currencies in the future, the prices charged by our suppliers for goods under new purchase orders may change in equivalent U.S. dollars. The largest portion of our overseas purchases comes from China. The Chinese yuan to U.S. dollar exchange rate has fluctuated over the past several years. Any future changes in the value of the Chinese yuan relative to the U.S. dollar may result in a change in the cost of goods that we purchase from China. However, the cost of the goods we procure is also affected by other factors, including raw material availability, labor costs, tariffs, and transportation costs.

We have operations located outside the United States with various functional currencies. Because our consolidated financial statements are denominated in U.S. dollars, the assets, liabilities, net sales, and expenses that are denominated in currencies other than the U.S. dollar must be converted into U.S. dollars using exchange rates for the current period. As a result, fluctuations in foreign currency exchange rates may impact our financial results.

Impact of Inflationary Costs

We experienced broad-based inflationary impacts during the year ended December 31, 2023, due primarily to global transportation and logistics constraints, which resulted in significantly higher transportation costs, tariffs and material costs, and wage inflation from an increasingly competitive labor market. Higher labor costs and material inflation resulting from geopolitical events, rising interest rates, disruptions to supply chain and logistics networks, and the trade policies of the U.S. or the countries where we source or sell our products may negatively impact our results in the future. We attempt to offset inflationary pressures with cost-saving initiatives, price increases to customers, and the use of alternative suppliers. There can be no assurance that we will be successful in implementing such cost-saving initiatives, pricing increases, or supplier diversification in the future to offset increased inflationary costs, or that the price increases we implement will not make our products uncompetitive or negatively impact customer demand.

Impact of Interest Rates

Our business is subject to interest rate risk under the terms of our customer accounts receivable sales programs, as a change in the Term Secured Overnight Financing Rate (“Term SOFR”) or alternative discount rate affects the cost incurred to factor eligible accounts receivable. Additionally, our outstanding borrowings under our credit facility bear interest at variable rates tied to Term SOFR or the applicable base rate. Under the terms of the credit facility, a change in interest rates affects the rate at which we can borrow funds thereunder and impacts the interest cost on existing borrowings. Interest rates may remain steady at their current levels for prolonged periods or ma

### What the price says

The price assumes cash profits grow 4.1% yearly over ten years; actual growth was 10.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate 0.046163526725953585. Price 123.63; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.580650645309024 → FY2025 7.216705683443881. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $64.24 per share

- 2016-11: $72.24 per share

- 2016-12: $73.06 per share

- 2017-01: $69.02 per share

- 2017-02: $78.16 per share

- 2017-03: $82.13 per share

- 2017-04: $83.15 per share

- 2017-05: $83.40 per share

- 2017-06: $82.77 per share

- 2017-07: $78.08 per share

- 2017-08: $66.42 per share

- 2017-09: $71.62 per share

- 2017-10: $69.11 per share

- 2017-11: $68.31 per share

- 2017-12: $61.14 per share

- 2018-01: $75.44 per share

- 2018-02: $69.00 per share

- 2018-03: $66.21 per share

- 2018-04: $64.26 per share

- 2018-05: $64.52 per share

- 2018-06: $68.31 per share

- 2018-07: $74.68 per share

- 2018-08: $80.98 per share

- 2018-09: $76.92 per share

- 2018-10: $79.01 per share

- 2018-11: $87.86 per share

- 2018-12: $90.02 per share

- 2019-01: $85.95 per share

- 2019-02: $80.90 per share

- 2019-03: $88.09 per share

- 2019-04: $87.67 per share

- 2019-05: $81.66 per share

- 2019-06: $87.14 per share

- 2019-07: $71.88 per share

- 2019-08: $71.08 per share

- 2019-09: $79.54 per share

- 2019-10: $71.95 per share

- 2019-11: $74.32 per share

- 2019-12: $75.72 per share

- 2020-01: $69.80 per share

- 2020-02: $60.64 per share

- 2020-03: $55.27 per share

- 2020-04: $63.08 per share

- 2020-05: $69.92 per share

- 2020-06: $67.07 per share

- 2020-07: $81.75 per share

- 2020-08: $84.69 per share

- 2020-09: $90.38 per share

- 2020-10: $89.27 per share

- 2020-11: $92.37 per share

- 2020-12: $86.82 per share

- 2021-01: $90.83 per share

- 2021-02: $99.71 per share

- 2021-03: $102.64 per share

- 2021-04: $99.18 per share

- 2021-05: $102.38 per share

- 2021-06: $103.67 per share

- 2021-07: $101.15 per share

- 2021-08: $93.86 per share

- 2021-09: $94.67 per share

- 2021-10: $104.38 per share

- 2021-11: $110.98 per share

- 2021-12: $113.01 per share

- 2022-01: $93.63 per share

- 2022-02: $93.42 per share

- 2022-03: $95.03 per share

- 2022-04: $98.72 per share

- 2022-05: $101.05 per share

- 2022-06: $109.71 per share

- 2022-07: $101.09 per share

- 2022-08: $90.65 per share

- 2022-09: $82.12 per share

- 2022-10: $81.62 per share

- 2022-11: $89.64 per share

- 2022-12: $80.87 per share

- 2023-01: $97.06 per share

- 2023-02: $93.03 per share

- 2023-03: $86.26 per share

- 2023-04: $86.16 per share

- 2023-05: $82.05 per share

- 2023-06: $78.83 per share

- 2023-07: $84.69 per share

- 2023-08: $82.51 per share

- 2023-09: $75.76 per share

- 2023-10: $62.18 per share

- 2023-11: $72.04 per share

- 2023-12: $83.41 per share

- 2024-01: $81.41 per share

- 2024-02: $94.22 per share

- 2024-03: $96.39 per share

- 2024-04: $87.45 per share

- 2024-05: $91.97 per share

- 2024-06: $91.48 per share

- 2024-07: $101.37 per share

- 2024-08: $113.42 per share

- 2024-09: $113.12 per share

- 2024-10: $114.03 per share

- 2024-11: $139.98 per share

- 2024-12: $129.55 per share

- 2025-01: $131.28 per share

- 2025-02: $131.46 per share

- 2025-03: $120.54 per share

- 2025-04: $113.30 per share

- 2025-05: $129.31 per share

- 2025-06: $122.67 per share

- 2025-07: $120.62 per share

- 2025-08: $161.79 per share

- 2025-09: $155.88 per share

- 2025-10: $134.13 per share

- 2025-11: $132.27 per share

- 2025-12: $123.19 per share

- 2026-01: $124.20 per share

- 2026-02: $117.86 per share

- 2026-03: $104.36 per share

- 2026-04: $112.51 per share

- 2026-05: $123.92 per share

- 2026-06: $136.45 per share

- 2026-07: $133.16 per share

- 2026-08: $128.85 per share

- 2026-09: $122.60 per share

- 2026-10: $123.63 per share

## Annual estimated value (USD per share)

- FY2016: low $44.36 per share, central $62.96 per share, high $73.34 per share

- FY2017: low $45.57 per share, central $65.75 per share, high $77.00 per share

- FY2018: low $50.97 per share, central $74.03 per share, high $86.88 per share

- FY2019: low $47.91 per share, central $64.68 per share, high $75.55 per share

- FY2020: low $55.42 per share, central $73.40 per share, high $85.29 per share

- FY2021: low $65.19 per share, central $91.83 per share, high $107.65 per share

- FY2022: low $77.71 per share, central $104.94 per share, high $122.89 per share

- FY2023: low $67.04 per share, central $93.15 per share, high $109.28 per share

- FY2024: low $90.03 per share, central $126.14 per share, high $147.96 per share

- FY2025: low $95.54 per share, central $133.75 per share, high $156.94 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/868780/000086878026000014/dorm-20251231.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.