Is OLD DOMINION FREIGHT LINE (NASDAQ:ODFL) a Strong Candidate for Quality Investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if OLD DOMINION FREIGHT LINE (NASDAQ:ODFL) is suited for quality investing. Investors should of course do their own research, but we spotted OLD DOMINION FREIGHT LINE showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why ODFL Holds Appeal for Quality Investors.

• Over the past 5 years, ODFL has experienced impressive revenue growth, with 7.19% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• The ROIC excluding cash and goodwill of ODFL stands at 24.13%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a favorable Debt/Free Cash Flow Ratio of 0.07, ODFL showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a robust Profit Quality (5-year) ratio of 75.24%, ODFL highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• The 5-year EBIT growth of ODFL has been remarkable, with 13.53% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• ODFL has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for ODFL?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

ODFL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 industry peers in the Ground Transportation industry. ODFL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ODFL is quite expensive at the moment. It does show a decent growth rate.

Check the latest full fundamental report of ODFL for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.