Stock fact sheet · data as of
Dorman Products, Inc. (DORM): fair value, margin of safety and Wheel Score
Consumer Cyclical · Auto - Parts · United States · Value
Is DORM undervalued?
DORM closed at 123.63 on 16 Oct 2026, 23% below the GLS average fair value of 160.86 from 8 models (4 of them above the price). That is a moderate margin of safety: the stock passes the "below fair value" rule of the Sunday Scan, and the Wheel Score gives it 22 of the 25 Value points.
The 8 models disagree widely: Lynch gives 51.81 while GLS Growth gives 328.11. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files DORM under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for DORM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 113.29 | -8% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 91.55 | -26% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 162.34 | +31% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 51.81 | -58% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 328.11 | +165% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 202.19 | +64% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 255.97 | +107% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 81.59 | -34% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 17.03 | -86% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 165.00 | +33% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health DORM scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.8 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 9.7%, ROE 13.8%, ROA 8.2% - with debt at 0.43 times equity and a free-cash-flow yield of 5.8%.
Dorman Products, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Powertrain 50%, Chassis 47%, Hardware 4% (quarter Q3 FY2023).
Institutional ownership scores 10/10, insider activity 6/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 9.7% |
|---|---|---|---|
| GLS Moat | 6.8 / 10 | ROE | 13.8% |
| Debt / equity | 0.43 | ROA | 8.2% |
| Free-cash-flow yield | 5.8% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 6 · 5 / 10 |
Wheel Score 84: Prime
DORM scores 84 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 22/25), Piotroski health (18/20), the GLS moat (10/15), the option premium on offer (20/20) and how easily the stock trades (14/20).
Implied volatility is 48% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 746 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 414k shares a day on a market cap of $3.7B, with a beta of 1.02; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 22 / 25 | 23% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 10 / 15 | moat 6.8/10 | |
| Premium | 20 / 20 | implied volatility 48% | |
| Stability | 14 / 20 | 414k shares/day, $3.7B cap, beta 1.02 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Dorman Products, Inc. reports earnings on 26 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Auto - Parts
The 12 companies below are the closest to Dorman Products, Inc. by market cap within the Auto - Parts industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ATMU Atmus Filtration Technologies Inc. | 43.98 | 37.08 | -19% | 65Good | $3.6B |
| DAN Dana Incorporated | 28.49 | 29.24 | +3% | 45Weak | $3.1B |
| GNTX Gentex Corporation | 21.11 | 35.91 | +41% | 93Prime | $4.4B |
| GTX Garrett Motion Inc. | 24.45 | 27.54 | +11% | 76Good | $4.6B |
| QS QuantumScape Corporation | 3.93 | 0.2596 | -1414% | 34Weak | $2.4B |
| LKQ LKQ Corporation | 22.36 | 35.96 | +38% | 82Prime | $5.7B |
| VC Visteon Corporation | 86.61 | 175.91 | +51% | 76Good | $2.3B |
| LEA Lear Corporation | 121.49 | 231.62 | +48% | 79Good | $6.0B |
| MBLY Mobileye Global Inc. | 7.43 | 6.31 | -18% | 45Weak | $6.3B |
| PHIN PHINIA Inc. | 55.84 | 77.57 | +28% | 83Prime | $2.0B |
| HSAI Hesai Group | 13.36 | 27.57 | +52% | 77Good | $1.7B |
| ALV Autoliv, Inc. | 115.96 | 186.41 | +38% | 87Prime | $8.5B |
⚖ Compare DORM with 7 of them All Consumer Cyclical stocks →
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Start free See the Sunday ScanQuestions about DORM
Is DORM undervalued right now?
By the GLS models, moderately: at 123.63 the stock trades 23% below the average fair value of 160.86 (data as of 16 Oct 2026).
What is the Wheel Score of DORM and what does it mean?
DORM scores 84 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for DORM?
160.86 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Dorman Products, Inc. report earnings next?
The next earnings report is due on 26 Oct 2026 (after the close), 10 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does DORM have listed options, and how liquid are they?
Yes. The nightly snapshot found 254 listed contracts with 746 open interest across all expiries and implied volatility of 48% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.