Shares of freight carrier Old Dominion (ODFL, Financial) fell 5.79% today after the company released updated financial forecasts for August 2024. The stock price dropped to $184.32.
Revenue per day dropped 5.2% compared to last year, primarily due to a 6.1% decrease in less-than-truckload (LTL) tons per day. However, an increase in LTL revenue per hundredweight partially offset this drop. CEO Marty Freeman explained that the revenue decline was due to overall softness in the domestic economy and lower fuel surcharge revenue, which impacted the overall yield.
Despite this downturn, Old Dominion's (ODFL, Financial) fundamentals remain robust. The company showcases strong financial strength with an Altman Z-score of 23.67, indicating low financial distress risk. Additionally, the Beneish M-Score of -2.8 implies that the company is unlikely to be a manipulator.
Old Dominion's (ODFL, Financial) operating margin stands at 28.05%, demonstrating efficiency in its operations. The stock also boasts a dividend yield close to a 10-year high, suggesting strong returns for long-term investors. The company has been expanding its operating margin, which is generally a positive sign for profitability.
Regarding valuation, Old Dominion (ODFL, Financial) is currently considered fairly valued with a GF Value of $187.44. The GF Score is an impressive 96, indicating a high-quality stock. For a detailed valuation, refer to the GF Value page.
Investors should also note the company's solid balance sheet, reflecting a cash-to-debt ratio of 1.74 and an equity-to-asset ratio of 0.77. Moreover, the company’s revenue growth rates over three, five, and ten years are 16.3%, 10.2%, and 9.9%, respectively, showcasing consistent performance.
Old Dominion's (ODFL, Financial) profitability metrics are strong, with a return on assets (ROA) of 23.83% and a return on equity (ROE) of 30.88%. The company's EBITDA margin is also noteworthy at 33.99%. Despite the recent stock price drop, these indicators suggest that Old Dominion remains a fundamentally sound investment.
