Dorman Products Inc.
Dorman Products, Inc. is a leading supplier of automotive replacement parts and hardware. It provides innovative solutions to keep vehicles operating safely and efficiently.
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Performance
Dorman Products, Inc. delivered strong financial performance in 2024, achieving net sales of $2.01 billion, a 4.1% increase from the previous year. The company reported a net income of $190 million, or $6.14 per diluted share, up 47% year-over-year. Adjusted diluted EPS rose 57% to $7.13. Gross margin improved to 40.1%, up from 35.5% in 2023, reflecting operational efficiencies and strategic investments in product innovation. The Light Duty segment led growth, with a 7% sales increase and a 18.2% profit margin, while the Heavy Duty segment experienced a 10% decline in sales and a decrease in profit margin to 2.8%. The Specialty Vehicle segment remained stable with a slight sales increase and a profit margin of 15.2%. Looking ahead, Dorman projects 2025 adjusted diluted EPS between $7.55 and $7.85, indicating continued confidence in its growth trajectory.
Quality of Earnings
The company demonstrates strong adherence to General Accounting Principles, with financial reports that conform to GAAP, are decision-useful, sustainable, and offer returns exceeding the cost of capital. There have been no recent changes to accounting policies, and all required financial reports are submitted on time. Revenue quality is also robust, marked by high predictability—with a substantial portion of clients returning year after year—strong profitability with gross margins exceeding 70%, diversified income sources with no client accounting for more than 15% of revenue, and clear growth in both revenue and net income. Additionally, there are no significant financial report warning signs: earnings contain minimal accrual components, do not narrowly beat benchmarks in a suspicious pattern, and revenue is not recognized prematurely. Expenses are not misrepresented, audit opinions are unqualified, goodwill is properly assessed, and the company does not rely on aggressive accounting tactics such as related-party transactions or off-balance-sheet debt. Operating cash flows align with net income, earnings are recurring and persistent, and there is no history of restatements or enforcement actions, reinforcing the reliability and quality of the company’s financial reporting.
Quality of revenue can be self checked with this questionnaire:
Conclusions were based on an annual report:
Company Summary
Dorman Products, Inc. is a U.S.-based manufacturer and distributor of aftermarket automotive replacement parts, offering over 118,000 products for passenger cars, light trucks, heavy-duty vehicles, and specialty vehicles.
