Dorman Products Inc (DORM, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $2.86 billion, with the current stock price at $90.69. Over the past week, Dorman's stock has seen a gain of 1.03%, and looking at the past three months, the stock has surged by an impressive 13.90%. When compared to the GF Value of $139.53, Dorman Products Inc is currently significantly undervalued, a status that has been consistent over the past three months, with the past GF Value recorded at $148.31.
Introduction to Dorman Products Inc
Dorman Products Inc, operating within the Vehicles & Parts industry, is a leading supplier of original equipment parts for automobiles. The company's diverse product portfolio includes automotive and heavy-duty replacement parts, automotive hardware, brake parts, and fasteners. Dorman's products are marketed under various brands such as Dorman, OE Solutions, Help!, Conduct-Tite, and HD Solutions. The company's primary market is the United States, where it distributes its products through aftermarket retailers, warehouse distributors, specialty markets, and salvage yards. Dorman operates as a single reportable segment, focusing on the motor vehicle aftermarket industry, catering to a wide range of vehicles from passenger cars to heavy-duty trucks and specialty vehicles.
Assessing Dorman's Profitability
Dorman Products Inc boasts a high Profitability Rank of 9 out of 10, indicating robust profitability metrics relative to its industry peers. The company's operating margin stands at 8.79%, outperforming 72.56% of 1,283 companies in the Vehicles & Parts industry. Dorman's return on equity (ROE) is 9.09%, surpassing 56.71% of its industry counterparts. Additionally, the return on assets (ROA) at 4.43% and return on invested capital (ROIC) at 7.51% both demonstrate Dorman's efficient use of its assets and capital, better than 60% and 62.66% of the industry, respectively. Impressively, Dorman has maintained profitability for the past 10 years, a testament to its consistent performance and financial stability.
Growth Trajectory of Dorman Products
The Growth Rank for Dorman Products Inc is a perfect 10 out of 10, reflecting the company's exceptional growth in revenue and profitability. Dorman's 3-year revenue growth rate per share is an impressive 21.90%, outpacing 85.74% of 1,206 companies in its industry. The 5-year revenue growth rate per share also stands strong at 14.80%. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is 8.24%, indicating a positive outlook for future earnings. The 3-year EPS without NRI growth rate is 14.60%, and the 5-year EPS growth rate is 4.00%, both showcasing Dorman's ability to increase earnings over time.
Key Shareholders in Dorman Products
Among the notable shareholders of Dorman Products Inc, Chuck Royce (Trades, Portfolio) stands out with a significant holding of 527,830 shares, accounting for 1.68% of the company's shares. Another prominent investor, Murray Stahl (Trades, Portfolio), holds a stake of 3,000 shares, representing 0.01% of the company. These investors' confidence in Dorman reflects the company's strong fundamentals and potential for continued growth.
Competitive Landscape
When compared to its closest competitors, Dorman Products Inc holds its ground with a market capitalization of $2.86 billion. QuantumScape Corp (QS, Financial) has a slightly higher market cap at $3.02 billion, while Garrett Motion Inc (GTX, Financial) is valued at $2.29 billion. Adient PLC (ADNT, Financial), another competitor, has a market cap of $3.11 billion. These companies, all operating within the same industry and with similar market capitalizations, provide a context for evaluating Dorman's performance and market position.
Conclusion
In summary, Dorman Products Inc's stock performance has been remarkable, with a 13.90% gain over the past three months and a current valuation that is significantly undervalued according to the GF Value. The company's high profitability and growth ranks, coupled with its consistent profitability over the past decade, paint a picture of a robust company with solid growth prospects. The confidence shown by significant shareholders like Chuck Royce (Trades, Portfolio) and Murray Stahl (Trades, Portfolio) further solidifies the company's standing. When juxtaposed with its competitors, Dorman's market capitalization and financial metrics demonstrate its competitive edge in the Vehicles & Parts industry. Investors looking for a company with strong fundamentals and growth potential may find Dorman Products Inc an attractive option.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
