Old Dominion Freight Line Inc (ODFL, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $225.67, Old Dominion Freight Line Inc has witnessed a daily gain of 0.49%, marked against a three-month change of 14.98%. A thorough analysis, underlined by the GF Score, suggests that Old Dominion Freight Line Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Old Dominion Freight Line Inc boasts a Financial strength rank of 10/10, a Profitability rank of 10/10, and a Growth rank of 10/10. However, its GF Value rank is slightly lower at 3/10, while its Momentum rank stands strong at 10/10. GuruFocus assigned Old Dominion Freight Line Inc a GF Score of 95 out of 100, which signals the highest outperformance potential.
Understanding Old Dominion Freight Line Inc Business
Old Dominion Freight Line Inc, with a market cap of $49.11 billion and sales of $5.87 billion, operates as the second-largest less-than-truckload carrier in the United States. It boasts over 250 service centers and more than 11,000 tractors. Known for its disciplined and efficient approach, Old Dominion Freight Line Inc's profitability and capital returns tower above its industry peers. The company's strategic initiatives focus on increasing network density through market share gains and maintaining industry-leading service, including ultra-low cargo claims, through steadfast infrastructure investment.
Financial Strength Breakdown
Old Dominion Freight Line Inc's Financial Strength rating is a testament to its resilient balance sheet and prudent capital management. The company's Interest Coverage ratio is an impressive 3,535.93, far exceeding Benjamin Graham's recommended threshold of 5. With an Altman Z-Score of 26.57, Old Dominion Freight Line Inc stands strong against financial distress. The company's strategic debt management is reflected in its favorable Debt-to-Revenue ratio of 0.01, further solidifying its financial health.
Profitability Rank Breakdown
Old Dominion Freight Line Inc's Profitability Rank is indicative of its superior ability to generate profits compared to its peers. The company's Operating Margin has seen a significant increase over the past five years, with the latest figure standing at 27.97%. Additionally, Old Dominion Freight Line Inc's Gross Margin has consistently risen, demonstrating its efficiency in converting revenue into profit. The company's Predictability Rank of 5 stars reflects its consistent operational performance, instilling confidence in investors.
Growth Rank Breakdown
Old Dominion Freight Line Inc's high Growth rank underscores its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 16.3% surpasses 71.71% of companies in the Transportation industry. Its EBITDA has also seen a robust increase, with a three-year growth rate of 22.1 and a five-year rate of 19.8, highlighting Old Dominion Freight Line Inc's growth capabilities.
Conclusion: A Strong Investment Prospect
Considering Old Dominion Freight Line Inc's exceptional 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 resilience.
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.
