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 $412.97, ODFL has enjoyed a daily increase of 0.92%, alongside a three-month appreciation of 3.17%. 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, assessing stocks based on five key valuation aspects. These aspects have demonstrated a strong correlation with long-term stock performance from 2006 to 2021. A higher GF Score typically indicates a greater potential for return, making it a valuable tool for investors seeking high-performing stocks. The GF Score ranges from 0 to 100, with 100 representing the pinnacle of potential 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. These components are weighted differently based on their impact on stock price performance. 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 $45.06 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. Known for its disciplined and efficient approach, the company's profitability and capital returns are unrivaled in the trucking industry. Its 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 financial turbulence. This is evidenced by an Interest Coverage ratio of 2,503.63, far surpassing Benjamin Graham's recommended threshold of 5. The company's Altman Z-Score of 25.11 further indicates a low probability of financial distress. Additionally, a Debt-to-Revenue ratio of 0.01 showcases Old Dominion Freight Line Inc's strategic debt management, reinforcing 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 uptrend over the past five years, climbing from 19.92% in 2019 to an impressive 31.48% in 2023. This consistent improvement in Gross Margin, which has risen from 28.48% in 2019 to 38.58% in 2023, underscores Old Dominion Freight Line Inc's increasing efficiency in converting revenue into profit. The company's Predictability Rank of 4.5 stars out of five further solidifies investor confidence in its consistent 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 76.79% of its peers in the Transportation industry. Additionally, Old Dominion Freight Line Inc has demonstrated a substantial increase in EBITDA, with a three-year growth rate of 28 and a five-year rate of 22.3, highlighting its ongoing growth capabilities.
Conclusion: A Strong Investment Prospect
Considering Old Dominion Freight Line Inc's exceptional financial strength, profitability, and growth metrics, the GF Score underscores the company's prime position for potential market outperformance. Investors seeking similar opportunities can explore more companies with robust GF Scores through the GF Score Screen. With its disciplined approach and strategic growth initiatives, Old Dominion Freight Line Inc stands as a compelling investment case for those looking to capitalize on financial stability and growth potential.
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.
