Old Dominion Freight Line Inc (ODFL, Financial) has recently garnered attention from the investment community, showcasing a strong financial profile that has piqued the interest of both investors and analysts. With its stock price at $416.7, Old Dominion Freight Line Inc has enjoyed a daily uptick of 0.55%, alongside a notable three-month appreciation of 5.74%. An in-depth examination, anchored by the GF Score, positions Old Dominion Freight Line Inc for significant growth, backed by its solid financial fundamentals and market potential.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance by evaluating five key aspects of a company's valuation. This system has been backtested from 2006 to 2021, revealing a strong correlation between high GF Scores and superior long-term stock returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Old Dominion Freight Line Inc boasts a GF Score of 94 out of 100, signaling exceptional prospects for market-beating performance.
- Financial strength rank: 10/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 8/10
Understanding Old Dominion Freight Line Inc's Business
Old Dominion Freight Line Inc, with a market cap of $45.47 billion and sales of $5.87 billion, is the second-largest less-than-truckload carrier in the United States. The company operates over 250 service centers and maintains a fleet of more than 11,000 tractors. Known for its disciplined approach and efficiency in the trucking industry, Old Dominion Freight Line Inc's profitability and capital returns are notably superior to its competitors. The company's strategic focus is on increasing network density through market share gains and sustaining industry-leading service through consistent infrastructure investment.
Financial Strength Breakdown
Old Dominion Freight Line Inc's Financial Strength rating is a testament to its resilient balance sheet and adept management of its capital structure. The company's Interest Coverage ratio is an impressive 3,535.93, far exceeding the benchmark set by investment guru Benjamin Graham. Additionally, with an Altman Z-Score of 24.88, Old Dominion Freight Line Inc stands well-guarded against financial distress. The company's strategic debt management is further reflected in its low Debt-to-Revenue ratio of 0.01.
Profitability Rank Breakdown
The Profitability Rank underscores Old Dominion Freight Line Inc's exceptional ability to generate profits, outshining its industry peers. The company's Operating Margin has seen a steady increase over the past five years, indicative of its growing efficiency in managing expenses relative to revenue. Similarly, Old Dominion Freight Line Inc's Gross Margin has consistently improved, highlighting its effectiveness in converting sales into profits. The company's Predictability Rank of 4.5 stars reflects its stable operational performance, instilling confidence in investors.
Growth Rank Breakdown
Old Dominion Freight Line Inc's high Growth Rank reflects its dedication to business expansion and market dominance. The company's 3-Year Revenue Growth Rate of 17.6% surpasses 76.2% of companies within the Transportation industry. The consistent increase in EBITDA over the past few years further emphasizes Old Dominion Freight Line Inc's capacity for sustained growth and profitability.
Conclusion: A Strong Investment Contender
Considering Old Dominion Freight Line Inc's formidable financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking companies with similar robust financial indicators can explore more options using 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 market leadership and financial growth.
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.
