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 $230.12 and a recent daily gain of 1.77%, the company has shown a notable three-month growth of 15.52%. A detailed analysis, supported by the GF Score, positions Old Dominion Freight Line Inc as a prime candidate for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum, which are crucial for long-term performance. Stocks with higher GF Scores typically yield higher returns. Old Dominion Freight Line Inc boasts a GF Score of 95 out of 100, indicating a strong potential for outperformance.
- 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 Business
Old Dominion Freight Line Inc, with a market cap of $49.13 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's profitability and capital returns significantly outpace 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 investments.
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 meet interest obligations. The company's Altman Z-Score of 26.77 further underscores its low risk of financial distress. Additionally, a minimal Debt-to-Revenue ratio of 0.01 highlights Old Dominion Freight Line Inc's prudent debt management.
Profitability and Growth Metrics
Old Dominion Freight Line Inc's profitability is reflected in its increasing Operating Margin, which has grown from 19.92% in 2019 to 27.97% in 2023. The company's Gross Margin has also seen a steady rise, indicating enhanced efficiency in revenue conversion into profit. With a Predictability Rank of 5.0 stars, Old Dominion Freight Line Inc demonstrates consistent operational performance, bolstering investor confidence.
Conclusion
Considering Old Dominion Freight Line Inc's exemplary 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.
