| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 67 | 17.5x | 17.8x | Top tier | |
Growth | 62 | 3.3% | 7.1% | Around median | |
Quality | 71 | 11.7% | 4.5% | Top tier | |
Safety | 80 | 1.2x | 2.6x | Top tier | |
Capital Return | 70 | — | 2.12% | Top tier | |
Momentum | 47 | -8.1% | 2.9% | Around median | |
Sentiment | 44 | 5 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Dorman Products operates in the vehicle aftermarket, generating revenue through three segments: Light Duty, Heavy Duty, and Specialty Vehicle. The company focuses on developing alternatives to original equipment parts and improved repair solutions, such as the aluminum oil pan for Ford F-150 vehicles, the hydrocarbon injection nozzle for heavy-duty vehicles, and Super ATV products for specialty vehicles. Most of its portfolio is based on non-discretionary repairs, with a greater emphasis on serving customers who rely on technicians to perform repairs rather than doing the repairs themselves.
In Q2 fiscal 2026, Dorman recorded record revenue of $544.6 million, up approximately 1% year over year, and gross profit of $251.2 million, equivalent to a calculated gross margin of approximately 46.1%. Reported net income was $87.8 million and earnings per share were $2.93, while adjusted earnings per share were $3.08, up 50% year over year. However, the recovery of IEEPA tariff costs added approximately $1.18 to adjusted earnings per share, resulting in comparable adjusted earnings per share of $1.90 after excluding it.
The Light Duty segment accounted for approximately $424 million, or nearly 78% of Q2 fiscal 2026 sales, with sales flat year over year and volume declining. The Heavy Duty segment generated $66 million, growing approximately 7%, while the Specialty Vehicle segment recorded $54 million, down 1%. Consolidated adjusted operating margin was 22.3%, but declined to 14.2% after excluding the recovery benefit, approximately 210 basis points lower year over year due to the impact of lower Light Duty volume.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of $140 and identical high and low targets of $140; the absence of any variation among the targets means the available estimate range does not provide a broad test of differences in opinion. The target is approximately 16% below the 52-week range high of $166.89 and approximately 42% above its low of $98.45, while the available data does not include a valid price-to-earnings ratio that can be used to value the stock; therefore, the positive consensus should be weighed against the reduction in sales growth guidance and the quarter's reliance on a one-time tariff recovery.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue was $544.6 million and net income was $87.8 million, while reported earnings per share reached $2.93. Adjusted earnings per share reached a record $3.08, up 50% year over year. However, the recovery of IEEPA tariff costs added approximately $1.18, resulting in comparable adjusted earnings per share of $1.90 after excluding it.
The company lowered its net sales growth range to 3%–5% from 7%–9%. Management attributed this to first-half fiscal 2026 performance, including declines in certain volumes, and to price reductions that began after tariff costs decreased. Nevertheless, it expects mid-single-digit growth in the second half of fiscal 2026, driven largely by new business wins and product launches.
The segment generated $424 million in Q2 fiscal 2026, representing nearly 78% of the company's sales, with revenue flat year over year and volume declining. Its operating margin was 24.7% after expanding 620 basis points, but the result benefited from the tariff recovery, while the first-half margin was 19.4%. The demand outlook is supported by an average light-duty vehicle age of 12.9 years, higher miles driven, and the portfolio's focus on non-discretionary repairs.
Dorman launched an aluminum oil pan for a broad range of Ford F-150 vehicles as an alternative to the plastic part prone to warping and leaking, and added a magnetic drain plug. In heavy-duty vehicles, it introduced a hydrocarbon injection nozzle, new power steering fluid and windshield washer fluid reservoirs, and two LED light assemblies. Super ATV also introduced a vented windshield for the CFMoto Z10 platform, alongside the expansion of repair parts aimed at older specialty vehicles.
The company ended Q2 fiscal 2026 with net debt of approximately $318 million and liquidity of $931 million. Its net leverage ratio was 0.69 times adjusted earnings before interest, taxes, depreciation, and amortization, after increasing its revolving credit facility to $800 million and extending its maturity to 2031. It also issued $450 million of unsecured notes due in 2034 and repurchased approximately 398 thousand shares for $47 million, with $363 million remaining under the repurchase authorization extending through 2027.
The first risk is volume weakness within the Light Duty segment and demand pressure on discretionary do-it-yourself categories, alongside a 1% decline in Specialty Vehicle sales in Q2 fiscal 2026. In heavy-duty vehicles, management does not expect meaningful growth in miles driven or freight tonnage during 2026 due to the ongoing freight recession, high fuel prices, and inflation. The decline in comparable gross margin to 38% and comparable adjusted operating margin to 14.2% also shows that underlying earnings were significantly weaker than the reported figures affected by the tariff recovery.
