Old Dominion Freight Line Inc (ODFL, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With a current share price of $207.43 and a daily gain of 3.04%, coupled with a three-month change of 1.48%, the company stands out in the market. A detailed analysis, supported by the GF Score, indicates that Old Dominion Freight Line Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key aspects of valuation. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher 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, reflecting its high potential for market outperformance.
- 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 $44.45 billion and annual sales of $5.92 billion, is 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 stands out for its profitability and capital returns, which are significantly higher than its industry peers. The company's strategic focus includes increasing network density through market share gains and maintaining top-tier service quality through consistent infrastructure investment.
Financial Strength Breakdown
Old Dominion Freight Line Inc's financial robustness is evident in its impressive Interest Coverage ratio of 5,996.28, showcasing its ability to comfortably cover interest obligations. The company's Altman Z-Score of 24.27 further underscores its financial stability, indicating a strong buffer against financial distress. Additionally, its Debt-to-Revenue ratio of 0.01 reflects prudent debt management, enhancing its financial health.
Profitability and Growth Metrics
Old Dominion Freight Line Inc's profitability is highlighted by its increasing Operating Margin, which has grown significantly over the past five years. The company's Gross Margin has also seen a steady rise, demonstrating enhanced efficiency in converting revenue into profit. These trends are complemented by a strong Predictability Rank of 5.0 stars, indicating reliable operational performance.
Conclusion
Considering Old Dominion Freight Line Inc's exceptional financial strength, profitability, and growth metrics, the GF Score distinctly highlights the company's superior position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through 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.
