Old Dominion Freight Line, Inc. Fundamental Analysis (NASDAQ: ODFL)
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) shows moderate financial fundamentals with a PE ratio of 30.16, profit margin of 20.08%, and ROE of 25.92%. The company generates $5.8B in annual revenue with weak year-over-year growth of -5.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ODFL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentODFL demonstrates superior asset utilization.
Valuation Score
WeakODFL trades at a premium to fair value.
Growth Score
WeakODFL faces weak or negative growth trends.
Financial Health Score
ExcellentODFL maintains a strong and stable balance sheet.
Profitability Score
ExcellentODFL achieves industry-leading margins.
Key Financial Metrics
Is ODFL Expensive or Cheap?
P/E Ratio
ODFL trades at 30.16 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ODFL's PEG of 2.60 indicates potential overvaluation.
Price to Book
The market values Old Dominion Freight Line, Inc. at 7.45 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.49 times EBITDA. This signals the market has high growth expectations.
How Well Does ODFL Make Money?
Net Profit Margin
For every $100 in sales, Old Dominion Freight Line, Inc. keeps $20.08 as profit after all expenses.
Operating Margin
Core operations generate 26.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.92 in profit for every $100 of shareholder equity.
ROA
Old Dominion Freight Line, Inc. generates $19.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Old Dominion Freight Line, Inc. produces operating cash flow of $1.43B, showing steady but balanced cash generation.
Free Cash Flow
Old Dominion Freight Line, Inc. generates strong free cash flow of $1.18B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.67 in free cash annually.
FCF Yield
ODFL converts 3.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How ODFL Stacks Against Its Sector Peers
| Metric | ODFL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.16 | 27.18 | Worse (Expensive) |
| ROE | 25.92% | 1204.00% | Weak |
| Net Margin | 20.08% | 32.00% | Weak |
| Debt/Equity | 0.00 | 0.87 | Strong (Low Leverage) |
| Current Ratio | 2.04 | 22.20 | Strong Liquidity |
| ROA | 19.72% | -1363309.00% (disorted) | Strong |
ODFL outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Old Dominion Freight Line, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.48%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
71.74%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
65.72%
Industry Style: Cyclical, Value, Infrastructure
High Growth