Old Dominion Freight LineMEX:ODFL 85 Operating Margin % is 23.78% as of Mar. 2026, which is 0% above its 10-year median of 23.68. GuruFocus rates MEX:ODFL with a GF Score™ of 85/100 and a GF Value™ of MXN3,231.49 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,007 Transportation companies, Old Dominion Freight Line ranks better than 86.89% on this metric.
Old Dominion Freight Line (MEX:ODFL) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Old Dominion Freight Line Operating Margin % Related Terms
Old Dominion Freight Line Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Old Dominion Freight Line Operating Margin % Chart
MEX:ODFL vs XPO, SAIA, KNX: Operating Margin % Comparison
For the Trucking subindustry, Old Dominion Freight Line's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Old Dominion Freight Line Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Old Dominion Freight Line's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Old Dominion Freight Line's Operating Margin % falls into.
Old Dominion Freight Line Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Old Dominion Freight Line's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Old Dominion Freight Line (MEX:ODFL) has a Operating Margin % of 23.78% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Old Dominion Freight Line and its competitors. This is near median its historical median of 23.68. Over the past decade, Old Dominion Freight Line's Operating Margin % has ranged from 16.17 to 29.40. According to the industry distribution chart, Old Dominion Freight Line ranks #132 out of 1007 companies in the Transportation industry, placing it in the top 13.1%.
Is Old Dominion Freight Line's Operating Margin % too high?
Old Dominion Freight Line's current Operating Margin % of 23.78% is near median its 10-year median of 23.68. Over the past 10 years, this metric has ranged from a low of 16.17 to a high of 29.40. The Transportation industry median Operating Margin % is 7.37. Old Dominion Freight Line's value of 23.78% is 222.7% above this industry median. Based on the distribution chart, Old Dominion Freight Line ranks #132 out of 1007 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Old Dominion Freight Line has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Old Dominion Freight Line's Operating Margin % compare to XPO and SAIA?
According to the Transportation industry distribution chart, Old Dominion Freight Line ranks #132 out of 1007 companies for Operating Margin %. This places Old Dominion Freight Line in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.37. Old Dominion Freight Line's value of 23.78% is 222.7% above this benchmark. Historically, Old Dominion Freight Line's own Operating Margin % has ranged from 16.17 to 29.40 over the past decade. While the company's 10-year median is 23.68 vs. the industry median of 7.37, Old Dominion Freight Line has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Transportation company?
The median Operating Margin % among Transportation companies is 7.37, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Old Dominion Freight Line's current Operating Margin % of 23.78% is 222.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Old Dominion Freight Line and its competitors. For the Transportation industry, the median Operating Margin % is 7.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Old Dominion Freight Line's current Operating Margin % is 23.78%, which is near median its own 10-year median of 23.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Old Dominion Freight Line stock overvalued right now?
Based on GuruFocus' analysis, Old Dominion Freight Line (MEX:ODFL) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN3,231.49, compared to a current price of MXN3,845.00 — trading 19% above its estimated fair value. The current Operating Margin % is 23.78%, which is near median its 10-year median of 23.68 and 222.7% above the Transportation industry median of 7.37. Old Dominion Freight Line's overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Old Dominion Freight Line (MEX:ODFL), the current Operating Margin % is 23.78% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Old Dominion Freight Line (MEX:ODFL) Overvalued in 2026?
Based on GuruFocus' analysis, Old Dominion Freight Line stock appears to be overvalued.
The current stock price of MXN3,845.00 is trading 19% above its estimated GF Value™ of MXN3,231.49.
GuruFocus considers Old Dominion Freight Line to be Modestly Overvalued.
Key valuation signals for MEX:ODFL:
Operating Margin %: 23.78% (near median its 10-year median of 23.68)
GF Value™: MXN3,231.49 vs. price of MXN3,845.00 (19% above fair value)
Industry Position: 222.7% above the Transportation median (#132 of 1007)
No single metric tells the full story. See the MEX:ODFL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Old Dominion Freight Line is the second-largest less-than-truckload carrier in the United States (following FedEx Freight), with roughly 260 service centers and 11,000-plus tractors. It is one of the most disciplined and efficient providers in the trucking industry, and its profitability and capital returns are well above those of its peers. Strategic initiatives focus on increasing network density through market-share gains and on maintaining industry-leading service (including ultralow cargo claims) through steadfast infrastructure investment.
85GF Score
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