DORM Stock Analysis — Dorman Products
Sector: Auto Parts
AI Verdict
Dorman is cheap for the growth you're getting, but the moat relies on continued catalog expansion and distribution strength to justify a rerating.
Competitive Moat
Dorman Products specializes in aftermarket automotive parts, focusing on hard-to-find replacement components that are often unavailable from original manufacturers. Their moat comes from a deep catalog and efficient distribution network, making them a go-to for mechanics and retailers needing quick, reliable part sourcing.
Summary
Dorman is notable for a 43.1% expected EPS jump next year while trading at just 14.6x forward earnings.
Where It Stands
With a forward P/E of 14.6x versus the sector median of 20x and trailing EPS growth of 43.1%, Dorman is priced well below typical auto parts valuations for its growth rate.
Key Metrics
- Trailing P/E: 20.9x
- Forward P/E: 14.6x
- PEG Ratio: 0.49
- Earnings Growth: +0.4%
- Revenue Growth: +0.1%
- 52-Week High: $166.89
- 52-Week Low: $98.45
Analyst Consensus
13 Buy · 1 Hold · 0 Sell (14 analysts)
Bull Case
Analysts expect 43.1% EPS growth while the stock trades at only 14.6x next year's earnings, making it cheap for the growth on offer.
Bear Case
If the forward P/E rerates up to the sector median of 20x, the upside is clear, but if growth disappoints and the multiple falls back toward the trailing P/E of 20.9x, recent optimism could unwind quickly.
Catalyst to Watch
Watch for quarterly earnings updates—if EPS growth tracks above 40%, the low forward P/E could attract more buyers.