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 $182.17 and a recent daily gain of 1.94%, despite a three-month decline of 15.76%, 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 valuation aspects. 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 98, signaling exceptional growth potential.
- Financial strength rank: 10/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 7/10
Understanding Old Dominion Freight Line Inc's Business
Old Dominion Freight Line Inc, with a market cap of $39.58 billion and annual sales of $5.88 billion, is the second-largest less-than-truckload carrier in the U.S. The company operates over 250 service centers and maintains more than 11,000 tractors. Known for its disciplined and efficient operations, Old Dominion Freight Line Inc's profitability and capital returns significantly outperform its industry peers. Strategic initiatives focus on increasing network density through market share gains and maintaining top-tier service quality, including ultra-low cargo claims, through consistent infrastructure investments.
Financial Strength Breakdown
Old Dominion Freight Line Inc's financial robustness is evident in its impressive Interest Coverage ratio of 5,461.96, showcasing its ability to comfortably cover interest expenses. The company's Altman Z-Score of 22.19 further underscores its low risk of financial distress. Additionally, a minimal Debt-to-Revenue ratio of 0.01 highlights its prudent debt management.
Profitability and Growth Metrics
Old Dominion Freight Line Inc's profitability is reflected in its rising Operating Margin, which has grown from 19.92% in 2019 to 27.97% in 2023. The company's consistent Gross Margin improvement, reaching 35.32% in 2023, demonstrates its increasing efficiency in converting revenue into profit. Its Predictability Rank of 5 stars indicates reliable operational performance, enhancing investor confidence.
Conclusion
Considering Old Dominion Freight Line Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market 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.
