DORMAN PRODUCTS INC (DORM) Stock Fundamental Analysis
NASDAQ:DORM - Nasdaq - US2582781009 - Common Stock - Currency: USD
DORM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. DORM gets an excellent profitability rating and is at the same time showing great financial health properties. DORM is not valued too expensively and it also shows a decent growth rate. This makes DORM very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year DORM was profitable.
In the past year DORM had a positive cash flow from operations.
DORM had positive earnings in each of the past 5 years.
In the past 5 years DORM always reported a positive cash flow from operatings.
1.2 Ratios
DORM has a Return On Assets of 8.84%. This is amongst the best in the industry. DORM outperforms 92.59% of its industry peers.
DORM has a Return On Equity of 16.05%. This is amongst the best in the industry. DORM outperforms 92.59% of its industry peers.
With an excellent Return On Invested Capital value of 12.64%, DORM belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
DORM had an Average Return On Invested Capital over the past 3 years of 9.34%. This is in line with the industry average of 9.05%.
The last Return On Invested Capital (12.64%) for DORM is above the 3 year average (9.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 16.05% | ||
| ROIC | 12.64% |
ROA(3y)6.22%
ROA(5y)7.06%
ROE(3y)12.47%
ROE(5y)12.81%
ROIC(3y)9.34%
ROIC(5y)9.92%
1.3 Margins
Looking at the Profit Margin, with a value of 10.48%, DORM belongs to the top of the industry, outperforming 97.53% of the companies in the same industry.
In the last couple of years the Profit Margin of DORM has grown nicely.
Looking at the Operating Margin, with a value of 15.55%, DORM belongs to the top of the industry, outperforming 98.77% of the companies in the same industry.
DORM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 40.65%, DORM belongs to the best of the industry, outperforming 93.83% of the companies in the same industry.
In the last couple of years the Gross Margin of DORM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.55% | ||
| PM (TTM) | 10.48% | ||
| GM | 40.65% |
OM growth 3Y4.55%
OM growth 5Y6.44%
PM growth 3Y-1.1%
PM growth 5Y2.27%
GM growth 3Y5.26%
GM growth 5Y3.2%
2. Health
2.1 Basic Checks
DORM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DORM has less shares outstanding than it did 1 year ago.
DORM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DORM has an improved debt to assets ratio.
2.2 Solvency
DORM has an Altman-Z score of 4.49. This indicates that DORM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.49, DORM belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
DORM has a debt to FCF ratio of 2.42. This is a good value and a sign of high solvency as DORM would need 2.42 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.42, DORM belongs to the top of the industry, outperforming 93.83% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that DORM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.33, DORM is not doing good in the industry: 64.20% of the companies in the same industry are doing better.
Although DORM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 4.49 |
ROIC/WACC1.25
WACC10.09%
2.3 Liquidity
A Current Ratio of 2.62 indicates that DORM has no problem at all paying its short term obligations.
The Current ratio of DORM (2.62) is better than 82.72% of its industry peers.
A Quick Ratio of 1.22 indicates that DORM should not have too much problems paying its short term obligations.
DORM's Quick ratio of 1.22 is fine compared to the rest of the industry. DORM outperforms 72.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
DORM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.39%, which is quite impressive.
DORM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.83% yearly.
DORM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.03%.
Measured over the past years, DORM shows a quite strong growth in Revenue. The Revenue has been growing by 15.18% on average per year.
EPS 1Y (TTM)48.39%
EPS 3Y15.37%
EPS 5Y21.83%
EPS Q2Q%54.2%
Revenue 1Y (TTM)6.03%
Revenue growth 3Y14.31%
Revenue growth 5Y15.18%
Sales Q2Q%8.32%
3.2 Future
Based on estimates for the next years, DORM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.00% on average per year.
Based on estimates for the next years, DORM will show a small growth in Revenue. The Revenue will grow by 4.76% on average per year.
EPS Next Y11.5%
EPS Next 2Y10%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.75%
Revenue Next 2Y4.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.63, which indicates a correct valuation of DORM.
DORM's Price/Earnings ratio is in line with the industry average.
DORM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.20, the valuation of DORM can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DORM is on the same level as its industry peers.
DORM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 14.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DORM is valued a bit more expensive than 69.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DORM is valued a bit more expensive than the industry average as 60.49% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.63 | ||
| EV/EBITDA | 11.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of DORM may justify a higher PE ratio.
PEG (NY)1.36
PEG (5Y)0.72
EPS Next 2Y10%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DORM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
122.67
-1.65 (-1.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners85.28%
Inst Owner Change5.05%
Ins Owners10.81%
Ins Owner Change-3.16%
Market Cap3.74B
Analysts82
Price Target148.67 (21.2%)
Short Float %3.53%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.89%
Min EPS beat(2)9.67%
Max EPS beat(2)36.11%
EPS beat(4)4
Avg EPS beat(4)27.34%
Min EPS beat(4)9.67%
Max EPS beat(4)37.78%
EPS beat(8)6
Avg EPS beat(8)19.23%
EPS beat(12)6
Avg EPS beat(12)8.17%
EPS beat(16)8
Avg EPS beat(16)6.1%
Revenue beat(2)1
Avg Revenue beat(2)1.53%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)3.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)3.34%
Revenue beat(8)1
Avg Revenue beat(8)-1.83%
Revenue beat(12)3
Avg Revenue beat(12)-0.7%
Revenue beat(16)7
Avg Revenue beat(16)0.78%
PT rev (1m)0%
PT rev (3m)5.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.04%
EPS NY rev (1m)0%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 14.2 | ||
| P/S | 1.83 | ||
| P/FCF | 19.63 | ||
| P/OCF | 16.25 | ||
| P/B | 2.8 | ||
| P/tB | 6.02 | ||
| EV/EBITDA | 11.18 |
EPS(TTM)7.85
EY6.4%
EPS(NY)8.64
Fwd EY7.04%
FCF(TTM)6.25
FCFY5.09%
OCF(TTM)7.55
OCFY6.15%
SpS67.13
BVpS43.83
TBVpS20.37
PEG (NY)1.36
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 16.05% | ||
| ROCE | 16.75% | ||
| ROIC | 12.64% | ||
| ROICexc | 13.05% | ||
| ROICexgc | 21.36% | ||
| OM | 15.55% | ||
| PM (TTM) | 10.48% | ||
| GM | 40.65% | ||
| FCFM | 9.31% |
ROA(3y)6.22%
ROA(5y)7.06%
ROE(3y)12.47%
ROE(5y)12.81%
ROIC(3y)9.34%
ROIC(5y)9.92%
ROICexc(3y)9.58%
ROICexc(5y)10.64%
ROICexgc(3y)16.14%
ROICexgc(5y)16.08%
ROCE(3y)13.07%
ROCE(5y)14.22%
ROICexcg growth 3Y8.15%
ROICexcg growth 5Y10.63%
ROICexc growth 3Y3.74%
ROICexc growth 5Y2.76%
OM growth 3Y4.55%
OM growth 5Y6.44%
PM growth 3Y-1.1%
PM growth 5Y2.27%
GM growth 3Y5.26%
GM growth 5Y3.2%
F-Score8
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.42 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 69.94% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 9.68 | ||
| Cash Conversion | 61.38% | ||
| Profit Quality | 88.81% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 4.49 |
F-Score8
WACC10.09%
ROIC/WACC1.25
Cap/Depr(3y)78.22%
Cap/Depr(5y)67.78%
Cap/Sales(3y)2.14%
Cap/Sales(5y)1.86%
Profit Quality(3y)77.16%
Profit Quality(5y)84.08%
High Growth Momentum
Growth
EPS 1Y (TTM)48.39%
EPS 3Y15.37%
EPS 5Y21.83%
EPS Q2Q%54.2%
EPS Next Y11.5%
EPS Next 2Y10%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.03%
Revenue growth 3Y14.31%
Revenue growth 5Y15.18%
Sales Q2Q%8.32%
Revenue Next Year4.75%
Revenue Next 2Y4.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y26.62%
EBIT growth 3Y19.51%
EBIT growth 5Y22.59%
EBIT Next Year26.36%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5347.23%
FCF growth 3Y33.52%
FCF growth 5Y23.87%
OCF growth 1Y415.22%
OCF growth 3Y32.07%
OCF growth 5Y19.38%