Dorman Story

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DORM -- USA Stock  

USD 99.52  2.13  2.10%

Macroaxis News
By Gabriel Shpitalnik  
Macroaxis Story
It appears without question that Dorman Products will continue to recover much faster as its share price surged up 10.15% today. The company current daily volatility is 2.4 percent, with a beta of 0.11 and an alpha of 0.12 over DOW. While some millenniums are indifferent towards automobiles and trucks, it makes sense to summarize Dorman Products. I will address the reasons why this entity does not get much respect from stakeholders under the current market uncertainty.
Published 3 days ago
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Should you buy Dorman after the new volatility pull down?
Dorman Products currently holds roughly 170.5 M in cash with 181.38 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.32. Dorman Products has performance score of 5 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.1127, which means not very significant fluctuations relative to the market. Let's try to break down what Dorman's beta means in this case. As returns on the market increase, Dorman Products returns are expected to increase less than the market. However, during the bear market, the loss on holding Dorman Products will be expected to be smaller as well. Although it is extremely important to respect Dorman Products historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Dorman Products technical indicators, you can presently evaluate if the expected return of 0.18% will be sustainable into the future. Dorman Products right now shows a risk of 2.4%. Please confirm Dorman Products standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if Dorman Products will be following its price patterns.
Investing in Dorman Products, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Dorman Products along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Dorman Products' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Dorman Products in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Dorman Products. Your research has to be compared to or analyzed against Dorman Products' peers to derive any actionable benefits. When done correctly, Dorman Products' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Dorman Products.

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.

How Dorman utilizes its cash?

To perform a cash flow analysis of Dorman Products, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Dorman Products is receiving and how much cash it distributes out in a given period. The Dorman Products cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Dorman Products Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 115.26 Million

Dorman Products Correlation with Peers

Investors in Dorman can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Dorman Products. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Dorman Products and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Dorman is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Dorman for more details

Breaking down Dorman Products Indicators

We consider Dorman Products very steady. Dorman Products secures Sharpe Ratio (or Efficiency) of 0.0769, which denotes the company had 0.0769% of return per unit of risk over the last month. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Dorman Products, which you can use to evaluate future volatility of the firm. Please confirm Dorman Products Downside Deviation of 2.09, coefficient of variation of 1635.76, and Mean Deviation of 1.56 to check if the risk estimate we provide is consistent with the expected return of 0.18%.
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0.450.710.240.49
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0.240.380.290.21
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0.490.050.340.21
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Are Dorman Products technical ratios showing a collapse?

New potential upside is at 2.92. Dorman Products currently demonstrates below-verage downside deviation. It has Information Ratio of 0.03 and Jensen Alpha of 0.12. However, we do advice investors to further question Dorman Products expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Bottom Line On Dorman Products

While few other entities within the auto parts industry are still a little expensive, even after the recent corrections, Dorman Products may offer a potential longer-term growth to stakeholders. To conclude, as of the 22nd of February 2021, we believe that at this point, Dorman Products is overvalued with very small probability of distress within the next 2 years. Our primary 'Buy-Sell' recommendation on the company is Hold.

About Contributor

Gabriel Shpitalnik is a Member of Macroaxs Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile
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 Gabriel 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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