Old Dominion Freight Line Inc (ODFL, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $205.16 and a daily gain of 1.84%, coupled with a three-month change of 1.09%, the company shows promising signs of substantial growth. A detailed analysis, supported by the GF Score, positions Old Dominion Freight Line Inc as a frontrunner for future market leadership.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance by evaluating five key aspects of a company's financials. This system, which has been backtested from 2006 to 2021, suggests that stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Old Dominion Freight Line Inc boasts a GF Score of 96, signaling strong future performance potential.
- Financial strength rank: 10/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 5/10
Understanding Old Dominion Freight Line Inc's Business
Old Dominion Freight Line Inc, with a market cap of $43.97 billion and annual sales of $5.97 billion, stands as the second-largest less-than-truckload carrier in the United States. The company operates over 250 service centers and maintains more than 11,000 tractors. Known for its disciplined and efficient approach, Old Dominion Freight Line Inc outshines its peers in profitability and capital returns. Its strategic focus includes enhancing network density through market share gains and sustaining top-tier service levels through consistent infrastructure investments.
Financial Strength Breakdown
Old Dominion Freight Line Inc's financial robustness is evident through its impressive Interest Coverage ratio of 4,880.9, significantly surpassing the benchmark set by investment guru Benjamin Graham. Additionally, with an Altman Z-Score of 24.28, the company demonstrates a strong buffer against financial distress. Its strategic debt management is reflected in a minimal Debt-to-Revenue ratio of 0.01, underscoring a sound financial structure.
Profitability and Growth Metrics
Old Dominion Freight Line Inc's profitability is highlighted by its increasing Operating Margin, which has grown consistently over the past five years, reaching 27.97% in 2023. This trend is mirrored in its Gross Margin, which also shows a steady increase, emphasizing the company's efficiency in converting revenue into profit. The firm's commitment to growth is evident from its 16.3% three-year revenue growth rate, outperforming 66.81% of its industry peers.
Conclusion
Considering Old Dominion Freight Line Inc's exceptional financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
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.
