Investment Research report

Dorman Products Inc.

Previous Item
All Reports
Dorman Products Inc.
Out of Stock, Time to Part with Dorman
Download Report
Dorman Products Inc.
Download Report 2
Dorman Products Inc.
Download Report 3
Dorman Products Inc.
Download Report 4
Dorman Products Inc.
Download Report 5
Dorman Products Inc.
Download Report 6
Dorman Products Inc.
Download Report 7

Research Overview

S&P 500
Consumer Discretionary
Aug 16, 2017

After conducting a forensic financial and accounting review, Spruce Point believes Dorman Products Inc. (NASDAQ: DORM), a manufacturer of aftermarket automotive products, is a distributor stuck between a rock and a hard place as it sells both through Amazon, which is seeking to grow further into online auto parts distribution, and through the biggest brick and mortar retailers (Adv. Auto Parts / O’Reilly / AutoZone), which account for a majority of its sales, and is struggling with slower growth and margin pressure. Based on our investigation, we forecast 30% to 50% downside risk. 

The report highlights several key concerns with the company, including:

  • Data shows that revenue growth is slowing and has a history of being overstated
  • Evidence of hidden margin benefits from aggressive capitalization and FX tailwinds coming to an end
  • We believe that product innovation is slowing as well as prices are deflating
Downloads & More

Research Assets & Releases

Join The Mailing List

Spruce Point Alerts & Updates

See the other side of the Wall Street hype machine.