Old Dominion Freight Line Inc (ODFL, Financial) is a leading player in the transportation industry with a market capitalization of $45.75 billion. As of July 26, 2023, the company's stock price stands at $417.22, marking a gain of 5.53% today and a significant increase of 24.91% over the past four weeks. In this article, we will delve into the company's GF Score of 94/100, which indicates its high outperformance potential. The GF Score is a comprehensive stock performance ranking system developed by GuruFocus, which evaluates a company's financial strength, profitability, growth, GF value, and momentum.
Financial Strength Analysis
ODFL's Financial Strength rank stands at an impressive 9/10. This rank is determined by factors such as the company's debt burden, measured by its interest coverage of 1075.78, and its debt to revenue ratio of 0.02. The company's high Altman Z score of 25.02 further underscores its strong financial health.
Profitability Rank Analysis
The company's Profitability Rank is a perfect 10/10, reflecting its robust profitability. This is evidenced by its high operating margin of 29.30%, a strong Piotroski F-Score of 8, and a consistent profitability trend over the past 10 years. The company's predictability rank of 4.5 further attests to its stable profitability.
Growth Rank Analysis
ODFL's Growth Rank is also at the maximum of 10/10, indicating strong growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 13.70%, and its 3-year revenue growth rate is 17.60%. Additionally, its 5-year EBITDA growth rate stands at 22.30%, demonstrating robust operational growth.
GF Value Rank Analysis
The company's GF Value Rank is 3/10, which is determined by the price-to-GF-Value ratio. This rank suggests that the company's stock is currently overvalued, which may impact its future performance.
Momentum Rank Analysis
ODFL's Momentum Rank is 10/10, reflecting strong price performance and positive momentum indicators. This suggests that the company's stock has the potential to continue its upward trajectory.
Competitor Analysis
When compared to its main competitors in the transportation industry, ODFL outperforms them in terms of the GF Score. Knight-Swift Transportation Holdings Inc (KNX, Financial) has a GF Score of 91, Saia Inc (SAIA, Financial) has a score of 87, and XPO Inc (XPO, Financial) lags behind with a score of 57.
Conclusion
In conclusion, Old Dominion Freight Line Inc's overall GF Score of 94/100 indicates a high potential for outperformance. The company's strong financial strength, profitability, and growth, coupled with its positive momentum, make it an attractive investment option. However, its current overvaluation may be a point of concern for potential investors. As always, investors are advised to conduct their own comprehensive research before making investment decisions.
