$Dorman Products (DORM.US)$A company listed in the United St...

The company's main business is powertrain, chassis, and body, with revenue primarily dominated by the North American market in the United States.

Over the past 5 years, the gross margin has slowly decreased from 39.7% to 34.4%, while the return on equity decreased from 19.6% in 2019 to 11.2%, gradually recovering to 14.7% thereafter.

In the past 5 years, revenue has continued to grow, while operating profit declined for two consecutive years in 2018 and 2019, then recovered to nearly the 2017 level for the following two years.

After a 37% decrease in 2019, net income increased for two consecutive years, surpassing the 2017 level in 2021, with an average growth rate of 4.4% over 5 years, and an average growth rate of 25.5% in the past two years.

Revenue increased by 36.8% in the first two quarters of 2022, operating profit increased by 16.9%, and net income increased by 13.6%.

The income statement shows that the company began incurring interest expenses in 2021, although the amount is minimal. Other income items are also minimal, making the income statement relatively clean.

Over the past 5 years, the asset-liability ratio has gradually increased from 17.1% to 44%, the growth rate is still quite significant.

The balance sheet shows that in 2021, inventory increased by 0.233 billion, exceeding the net income of 0.132 billion for that year, and accounted for 40% of the revenue, this change is very abnormal. In the first two quarters of 2022, inventory increased by 0.103 billion again, exceeding the cumulative net profit of 73.11 million for the first two quarters, this needs to be handled with special care.

The company currently has no long-term borrowings, but has short-term borrowings of 0.229 billion.

Over the past 5 years, the cumulative operating net amount has been less than the investment net amount, resulting in no shareholder surplus.

Currently, the pe ratio is 20.2, and the trailing pe ratio is 18.7. Considering the quality of recent profits, it is not very attractive.