OLD DOMINION FREIGHT LINE (ODFL) Stock Fundamental Analysis
NASDAQ:ODFL - Nasdaq - US6795801009 - Common Stock - Currency: USD
ODFL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 39 industry peers in the Ground Transportation industry. ODFL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ODFL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ODFL had positive earnings in the past year.
ODFL had a positive operating cash flow in the past year.
In the past 5 years ODFL has always been profitable.
ODFL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.91%, ODFL belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
ODFL has a better Return On Equity (27.12%) than 94.87% of its industry peers.
ODFL has a Return On Invested Capital of 22.94%. This is amongst the best in the industry. ODFL outperforms 97.44% of its industry peers.
ODFL had an Average Return On Invested Capital over the past 3 years of 26.98%. This is significantly above the industry average of 8.06%.
The last Return On Invested Capital (22.94%) for ODFL is well below the 3 year average (26.98%), which needs to be investigated, but indicates that ODFL had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.91% | ||
| ROE | 27.12% | ||
| ROIC | 22.94% |
ROA(3y)24.18%
ROA(5y)21.88%
ROE(3y)31.58%
ROE(5y)28.62%
ROIC(3y)26.98%
ROIC(5y)24.46%
1.3 Margins
ODFL has a Profit Margin of 20.04%. This is amongst the best in the industry. ODFL outperforms 82.05% of its industry peers.
ODFL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 26.10%, ODFL belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
ODFL's Operating Margin has improved in the last couple of years.
ODFL has a Gross Margin of 89.31%. This is amongst the best in the industry. ODFL outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of ODFL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.1% | ||
| PM (TTM) | 20.04% | ||
| GM | 89.31% |
OM growth 3Y0.1%
OM growth 5Y5.91%
PM growth 3Y1.2%
PM growth 5Y6.37%
GM growth 3Y-0.05%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ODFL is creating value.
ODFL has less shares outstanding than it did 1 year ago.
ODFL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ODFL has an improved debt to assets ratio.
2.2 Solvency
ODFL has an Altman-Z score of 19.39. This indicates that ODFL is financially healthy and has little risk of bankruptcy at the moment.
ODFL has a better Altman-Z score (19.39) than 100.00% of its industry peers.
ODFL has a debt to FCF ratio of 0.07. This is a very positive value and a sign of high solvency as it would only need 0.07 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.07, ODFL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ODFL has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
ODFL's Debt to Equity ratio of 0.01 is amongst the best of the industry. ODFL outperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 19.39 |
ROIC/WACC2.45
WACC9.37%
2.3 Liquidity
ODFL has a Current Ratio of 1.32. This is a normal value and indicates that ODFL is financially healthy and should not expect problems in meeting its short term obligations.
ODFL has a better Current ratio (1.32) than 69.23% of its industry peers.
A Quick Ratio of 1.32 indicates that ODFL should not have too much problems paying its short term obligations.
ODFL has a better Quick ratio (1.32) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
ODFL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.16%.
Measured over the past years, ODFL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.53% on average per year.
Looking at the last year, ODFL shows a decrease in Revenue. The Revenue has decreased by -2.63% in the last year.
Measured over the past years, ODFL shows a small growth in Revenue. The Revenue has been growing by 7.19% on average per year.
EPS 1Y (TTM)-6.16%
EPS 3Y7.23%
EPS 5Y16.53%
EPS Q2Q%-11.19%
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y3.42%
Revenue growth 5Y7.19%
Sales Q2Q%-5.84%
3.2 Future
Based on estimates for the next years, ODFL will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.89% on average per year.
The Revenue is expected to grow by 6.46% on average over the next years.
EPS Next Y-4.09%
EPS Next 2Y5.72%
EPS Next 3Y8.73%
EPS Next 5Y10.89%
Revenue Next Year-2.26%
Revenue Next 2Y2.92%
Revenue Next 3Y4.35%
Revenue Next 5Y6.46%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.05, ODFL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ODFL is on the same level as its industry peers.
ODFL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.15 indicates a quite expensive valuation of ODFL.
61.54% of the companies in the same industry are cheaper than ODFL, based on the Price/Forward Earnings ratio.
ODFL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.05 | ||
| Fwd PE | 26.15 |
4.2 Price Multiples
64.10% of the companies in the same industry are cheaper than ODFL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ODFL is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.69 | ||
| EV/EBITDA | 18.58 |
4.3 Compensation for Growth
ODFL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.82
EPS Next 2Y5.72%
EPS Next 3Y8.73%
5. Dividend
5.1 Amount
ODFL has a yearly dividend return of 0.69%, which is pretty low.
ODFL's Dividend Yield is comparable with the industry average which is at 1.58.
With a Dividend Yield of 0.69, ODFL pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of ODFL is nicely growing with an annual growth rate of 35.65%!
ODFL has been paying a dividend for over 5 years, so it has already some track record.
ODFL has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)35.65%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
19.72% of the earnings are spent on dividend by ODFL. This is a low number and sustainable payout ratio.
The dividend of ODFL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.72%
EPS Next 2Y5.72%
EPS Next 3Y8.73%
160.18
-2.23 (-1.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners81.89%
Inst Owner Change0.17%
Ins Owners10.06%
Ins Owner Change7.38%
Market Cap33.85B
Analysts69.03
Price Target172.49 (7.69%)
Short Float %5.68%
Short Ratio5.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend1.04
Dividend Growth(5Y)35.65%
DP19.72%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.74%
Min EPS beat(2)1.96%
Max EPS beat(2)3.51%
EPS beat(4)2
Avg EPS beat(4)1.06%
Min EPS beat(4)-1.09%
Max EPS beat(4)3.51%
EPS beat(8)4
Avg EPS beat(8)0.66%
EPS beat(12)7
Avg EPS beat(12)1.34%
EPS beat(16)11
Avg EPS beat(16)2.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-2.14%
Min Revenue beat(4)-3.4%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-2.47%
Revenue beat(12)0
Avg Revenue beat(12)-2.49%
Revenue beat(16)4
Avg Revenue beat(16)-1.52%
PT rev (1m)-5.74%
PT rev (3m)-16.26%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-11.29%
EPS NY rev (1m)-5.2%
EPS NY rev (3m)-8.27%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-5.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.05 | ||
| Fwd PE | 26.15 | ||
| P/S | 5.91 | ||
| P/FCF | 40.69 | ||
| P/OCF | 21.53 | ||
| P/B | 7.99 | ||
| P/tB | 7.99 | ||
| EV/EBITDA | 18.58 |
EPS(TTM)5.33
EY3.33%
EPS(NY)6.13
Fwd EY3.82%
FCF(TTM)3.94
FCFY2.46%
OCF(TTM)7.44
OCFY4.64%
SpS27.11
BVpS20.04
TBVpS20.04
PEG (NY)N/A
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.91% | ||
| ROE | 27.12% | ||
| ROCE | 30.31% | ||
| ROIC | 22.94% | ||
| ROICexc | 23.4% | ||
| ROICexgc | 23.4% | ||
| OM | 26.1% | ||
| PM (TTM) | 20.04% | ||
| GM | 89.31% | ||
| FCFM | 14.52% |
ROA(3y)24.18%
ROA(5y)21.88%
ROE(3y)31.58%
ROE(5y)28.62%
ROIC(3y)26.98%
ROIC(5y)24.46%
ROICexc(3y)28.57%
ROICexc(5y)27.14%
ROICexgc(3y)28.57%
ROICexgc(5y)27.14%
ROCE(3y)35.64%
ROCE(5y)32.31%
ROICexcg growth 3Y-5.87%
ROICexcg growth 5Y4.54%
ROICexc growth 3Y-5.87%
ROICexc growth 5Y4.67%
OM growth 3Y0.1%
OM growth 5Y5.91%
PM growth 3Y1.2%
PM growth 5Y6.37%
GM growth 3Y-0.05%
GM growth 5Y0.13%
F-Score7
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 211.91% | ||
| Cap/Sales | 12.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.21% | ||
| Profit Quality | 72.44% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 19.39 |
F-Score7
WACC9.37%
ROIC/WACC2.45
Cap/Depr(3y)246.01%
Cap/Depr(5y)207.17%
Cap/Sales(3y)12.85%
Cap/Sales(5y)10.93%
Profit Quality(3y)68.97%
Profit Quality(5y)75.24%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.16%
EPS 3Y7.23%
EPS 5Y16.53%
EPS Q2Q%-11.19%
EPS Next Y-4.09%
EPS Next 2Y5.72%
EPS Next 3Y8.73%
EPS Next 5Y10.89%
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y3.42%
Revenue growth 5Y7.19%
Sales Q2Q%-5.84%
Revenue Next Year-2.26%
Revenue Next 2Y2.92%
Revenue Next 3Y4.35%
Revenue Next 5Y6.46%
EBIT growth 1Y-9.03%
EBIT growth 3Y3.52%
EBIT growth 5Y13.53%
EBIT Next Year17.06%
EBIT Next 3Y14.64%
EBIT Next 5Y12.75%
FCF growth 1Y3.73%
FCF growth 3Y10.25%
FCF growth 5Y11.97%
OCF growth 1Y-8.52%
OCF growth 3Y11.02%
OCF growth 5Y11.02%