Old Dominion Freight Line Inc (ODFL, Financial) has recently garnered attention from the investment community, showcasing a solid financial profile that's piquing the interest of savvy investors. With a current share price of $220.96, Old Dominion Freight Line Inc has enjoyed a daily uptick of 2.02%, alongside a notable three-month appreciation of 14.65%. A deep dive into the company's financials, particularly the GF Score, reveals that Old Dominion Freight Line Inc is on a trajectory for significant growth, positioning it as a compelling pick for future gains.
What Is the GF Score?
The GF Score is an exclusive stock performance ranking system from GuruFocus, which evaluates stocks based on five key valuation aspects. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. A higher GF Score typically indicates a greater potential for return, making it a valuable tool for investors seeking high-performing stocks. The GF Score ranges from 0 to 100, with 100 representing the pinnacle of potential outperformance.
- Financial strength rank: 10/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Each component of the GF Score is individually ranked, with each rank positively correlated with long-term stock performance. The overall GF Score is a weighted sum of these components, reflecting their varying impacts on stock price performance. With a high GF Score of 97 out of 100, Old Dominion Freight Line Inc is flagged by GuruFocus as having a high potential for outperformance.
Understanding Old Dominion Freight Line Inc's Business
Old Dominion Freight Line Inc, with a market cap of $48.08 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 and efficient approach, Old Dominion Freight Line Inc stands out in the trucking industry for its profitability and capital returns. The company's strategic initiatives focus on increasing network density through market share gains and maintaining top-tier service, including minimal cargo claims, 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 25.74, Old Dominion Freight Line Inc demonstrates a formidable shield against financial distress. The company's strategic debt management is further evidenced by its low Debt-to-Revenue ratio of 0.01, reinforcing its financial robustness.
Profitability Rank Breakdown
The Profitability Rank highlights Old Dominion Freight Line Inc's superior ability to generate profits compared to its industry peers. The company's Operating Margin has seen a steady increase over the past five years, with the latest figure standing at 27.97%. This growth trajectory is mirrored in the company's Gross Margin, which has consistently improved, indicating an increasing efficiency in converting revenue into profit. Old Dominion Freight Line Inc's Predictability Rank of 5 stars further solidifies investor confidence in its consistent operational performance.
Growth Rank Breakdown
Old Dominion Freight Line Inc's high Growth Rank reflects its dedication to business expansion. The company's 3-Year Revenue Growth Rate of 16.3% surpasses 72.24% of companies in the Transportation industry. Additionally, Old Dominion Freight Line Inc's EBITDA has experienced significant growth, with a three-year growth rate of 22.1 and a five-year rate of 19.8, highlighting its ability to sustain growth momentum.
Conclusion: A Strong Investment Prospect
Considering Old Dominion Freight Line Inc's exceptional financial strength, profitability, and growth metrics, the GF Score underscores the company's prime position for potential outperformance. Investors seeking similar opportunities can explore more companies with strong GF Scores through the GF Score Screen. With its robust financial health and strategic growth initiatives, Old Dominion Freight Line Inc stands as a beacon of investment potential in the transportation sector.
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.
