Dorman Story

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DORM -- USA Stock  

USD 101.45  3.48  3.32%

Dorman Products is scheduled to announce its earnings today. The next earnings report is expected on the 26th of April 2021. Dorman Products Accounts Payable Turnover is relatively stable at the moment as compared to the past year. The company's current value of Accounts Payable Turnover is estimated at 15.17. Accrued Expenses Turnover is expected to hike to 32.23 this year, although the value of Revenue Per Employee will most likely fall to nearly 519.3 K. As many passive investors are finally getting excited about consumer cyclical space, Dorman Products could be a good starting point. I will address a few possible reasons stakeholders do not currently respect this stock.
Published over a week ago
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Should I trade my Dorman (NASDAQ:DORM) position?
The company currently holds 34.43 M in liabilities with Debt to Equity (D/E) ratio of 0.04, which may suggest the firm is not taking enough advantage from borrowing. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Dorman Products has an asset utilization ratio of 165.63 percent. This denotes that the company is making $1.66 for each dollar of assets. An increasing asset utilization means that Dorman Products is more efficient with each dollar of assets it utilizes for everyday operations.
Dorman Products financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Dorman Products, including all of Dorman Products's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Dorman Products assets, the company is considered highly leveraged. Understanding the composition and structure of overall Dorman Products debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Dorman Total Liabilities

Dorman Products liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Dorman Products has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Dorman Products balance sheet include debt obligations and money owed to different Dorman Products vendors, workers, and loan providers. Below is the chart of Dorman short long-term liabilities accounts currently reported on its balance sheet.
You can use Dorman Products financial leverage analysis tool to get a better grip on understanding its financial position

How important is Dorman Products's Liquidity

Dorman Products financial leverage refers to using borrowed capital as a funding source to finance Dorman Products ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Dorman Products financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Dorman Products's total debt and its cash.

A Deeper Perspective

The new indifference towards the small price fluctuations of Dorman Products could raise concerns from stakeholders as the firm it trading at a share price of 93.08 on 170,151 in volume. The company directors and management did not add any value to Dorman Products investors in January. However, most investors can still diversify their portfolios with Dorman Products to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.01. The current volatility is consistent with the ongoing market swings in January 2021 as well as with Dorman Products unsystematic, company-specific events.

Asset Breakdown

184.3 M
Assets Non Current
612.3 M
Current Assets
Total Assets796.61 Million
Current Assets612.35 Million
Assets Non Current184.26 Million
Goodwill45.88 Million
Tax Assets10.58 Million

Dorman technical analysis denotes possible reversion

Variance is down to 3.7. It may denote a possible volatility pull down. Dorman Products exhibits very low volatility with skewness of -0.41 and kurtosis of 2.07. However, we advise investors to further study Dorman Products technical indicators to make sure all market info is available and is reliable.

Our Final Take On Dorman Products

When is the right time to buy or sell Dorman Products? Buying stocks such as Dorman Products isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis. To conclude, as of the 22nd of February 2021, our up-to-date 30 days buy-hold-sell advice on the company is Buy. We believe Dorman Products is fairly valued with very small odds of financial turmoil for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Dorman Products. Please refer to our Terms of Use for any information regarding our disclosure principles.

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