Old Dominion Freight Line Inc (ODFL, Financial) has recently garnered attention from the investment community, showcasing a solid financial profile that suggests promising growth prospects. With a current share price of $403.8, ODFL has experienced a modest daily uptick of 0.44%, contrasting with a slight three-month decline of -1.34%. A comprehensive evaluation, anchored by the GF Score, positions Old Dominion Freight Line Inc for significant future expansion.
What Is the GF Score?
The GF Score is a proprietary ranking system by GuruFocus, which evaluates stocks based on five key aspects: financial strength, profitability, growth, value, and momentum. These aspects have been backtested from 2006 to 2021, revealing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance.
- Financial strength rank: 10/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 6/10
Each component of the GF Score is individually ranked, with each rank positively correlated with long-term stock performance. After weighing these aspects, Old Dominion Freight Line Inc has been assigned a GF Score of 93 out of 100, indicating a strong potential for market outperformance.
Understanding Old Dominion Freight Line Inc's Business
Old Dominion Freight Line Inc, with a market cap of $44.06 billion and sales of $5.86 billion, operates with an impressive operating margin of 28.14%. As the second-largest less-than-truckload carrier in the United States, ODFL boasts over 250 service centers and more than 11,000 tractors. Renowned for its operational discipline and efficiency, the company's profitability and capital returns are exceptional within the trucking industry. Strategic initiatives focus on increasing network density through market share gains and maintaining top-tier service through consistent infrastructure investment.
Financial Strength Breakdown
Old Dominion Freight Line Inc's Financial Strength rating reflects a resilient balance sheet, capable of withstanding economic fluctuations. The company's Interest Coverage ratio is an impressive 2,503.63, far exceeding Benjamin Graham's recommended threshold of 5, indicating a strong ability to meet interest obligations. With an Altman Z-Score of 24.53, ODFL is well-protected against financial distress. The company's strategic debt management is evident in its low Debt-to-Revenue ratio of 0.01, further solidifying its financial robustness.
Profitability Rank Breakdown
The Profitability Rank highlights Old Dominion Freight Line Inc's superior ability to generate profits compared to its competitors. The company's Operating Margin has seen a significant increase over the past five years, with a current figure of 31.48%. Additionally, ODFL's Gross Margin has consistently improved, reaching 38.58% in 2023. These trends demonstrate the company's growing efficiency in converting revenue into profit. The strong Predictability Rank of 4.5 stars further reinforces investor confidence in ODFL's stable operational performance.
Growth Rank Breakdown
Old Dominion Freight Line Inc's high Growth Rank reflects its dedication to business expansion. The company's 3-Year Revenue Growth Rate of 17.6% surpasses 76.66% of its peers in the Transportation industry. ODFL's EBITDA has also shown a robust increase, with a three-year growth rate of 28 and a five-year rate of 22.3, highlighting its sustained growth capabilities.
Conclusion: ODFL's Unmatched Potential for Outperformance
Considering Old Dominion Freight Line Inc's exceptional financial strength, profitability, and growth metrics, the GF Score underscores the company's unparalleled position for potential outperformance. Investors seeking similar opportunities can explore more companies with strong GF Scores using the GF Score Screen. With ODFL's consistent track record and strategic initiatives, could this be the right time for value investors to consider adding ODFL to their portfolios?
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
