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 $228.13, despite a slight daily decrease of 0.89%, the company has shown an impressive three-month growth of 16.51%. 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 valuation aspects. This system has proven to correlate strongly 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 95, signaling strong future performance potential.
- Financial strength rank: 10/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 5/10
Understanding Old Dominion Freight Line Inc's Business
Old Dominion Freight Line Inc, with a market cap of $48.89 billion and annual sales of $5.92 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 operational discipline and efficiency, Old Dominion Freight Line Inc consistently outperforms its peers in profitability and capital returns. Its strategic focus includes increasing network density through market share gains and maintaining top-tier service quality through continuous infrastructure investment.
Financial Strength Breakdown
Old Dominion Freight Line Inc's financial robustness is evident in its Financial Strength rating. The company's Interest Coverage ratio is an impressive 5,996.28, showcasing its ability to comfortably cover interest obligations. Additionally, an Altman Z-Score of 27.28 further confirms its low risk of financial distress. The strategic management of its debt, with a Debt-to-Revenue ratio of 0.01, underscores its solid financial health.
Profitability and Growth Metrics
Old Dominion Freight Line Inc's profitability is highlighted by its impressive Operating Margin, which has consistently increased over the past five years, reaching 27.97% in 2023. The company's Gross Margin also reflects a steady increase, demonstrating enhanced efficiency in revenue conversion into profit. Furthermore, its Predictability Rank of 5 stars indicates reliable operational performance, boosting investor confidence.
Conclusion
Considering Old Dominion Freight Line Inc's exceptional financial strength, profitability, and growth metrics, the GF Score highlights the company's unparalleled position for potential outperformance. Investors seeking 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.
