Old Dominion Freight Line Inc (ODFL, Financial) saw its stock price decrease by 7.35% following a disappointing first-quarter 2025 report. This decline was primarily due to a nearly 6% drop in year-over-year revenue, attributed to decreases in both tonnage and shipment counts. The current stock price stands at $147.22.
Despite the recent dip, Old Dominion (ODFL, Financial) boasts strong financial health and profitability metrics. The company holds a solid Altman Z-score of 19.28, indicating low bankruptcy risk, and a high Return on Equity (ROE) of 27.13%, which demonstrates robust earnings relative to shareholder equity. Moreover, its operating margin is expanding, currently at 26.1%, which is indicative of improved cost management and higher profitability.
Valuation measures suggest that Old Dominion (ODFL, Financial) might be modestly undervalued. With a price-to-earnings (PE) ratio of 27.62 and a price-to-book (PB) ratio near a 3-year low of 7.38, the stock presents potential growth opportunities. The GF Value for Old Dominion is evaluated at $182.27, which you can review in detail on the GF Value page. This indicates a significant upside potential from its current market price.
Furthermore, Old Dominion (ODFL, Financial) continues to excel in financial strength, holding a strong position with a cash-to-debt ratio of 1.62, underscoring its ability to meet financial obligations. The stock enjoys a high predictability rank, suggesting consistent performance which can be attractive to long-term investors.
In summary, despite recent setbacks in revenue performance, Old Dominion Freight Line (ODFL, Financial) maintains a solid financial foundation and attractive valuation metrics. Investors might consider the stock for its long-term potential, supported by its industry-leading service and efficient operations.
