F

Dorman Products, Inc. — Earnings Quality Grade F

DORM · Consumer Cyclical

Major red flags

Revenue
$2.1B
2025
Net Income
$204M
2025
Gross Margin
42.1%
Free Cash Flow
$76M
01

Screening Summary

13
Passed
2
Watch
2
Failed
-2.48
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 82 days, change -22 days YoY

A2AR vs Revenue Growth

AR growth -16.5% vs revenue growth 6.0%

A3Revenue vs CFFO

Revenue 6.0%, CFFO -50.8%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory growth 35.5% far exceeds COGS 2.5%, margin rising. Fraud signal

B2CapEx vs Revenue

CapEx growth -3.7% vs revenue 6.0%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 60.3%. Normal

B4Gross Margin

Gross margin 42.1%, change +2.0pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO/NI = 0.56. Below 1.0

C2Free Cash Flow

FCF $0.1B, FCF/NI = 0.37

C3Accruals Ratio

Accruals ratio = 3.6%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 9% of debt $0.5B

04

Balance Sheet Health

!
D1Goodwill + Intangibles

Goodwill+Intangibles $0.6B = 44% of equity

D2Leverage

Debt/EBITDA = 1.5x. Healthy

D3Soft Asset Growth

Other assets 1.5% vs revenue 6.0%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -11% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.48 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.48
-4.0 Clean-2.22 Grey-1.78 Danger0
0.788
DSRI
AR growing faster than revenue?
0.952
GMI
Gross margin declining?
0.869
AQI
Asset quality deteriorating?
1.06
SGI
Revenue growth rate
1.01
DEPI
Depreciation slowing?
0.995
SGAI
SG&A ratio changing?
0.0363
TATA
Accruals level
0.868
LVGI
Leverage increasing?
05

Altman Z-Score

6.81
Safe Zone
0 Distress1.102.605.0+ Safe
0.4126
Liquidity
0.5392
Cumulative profit
0.1219
Operating efficiency
1.4538
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25