OLD DOMINION FREIGHT LINE (ODFL) Stock Fundamental Analysis
NASDAQ:ODFL - Nasdaq - US6795801009 - Common Stock - Currency: USD
Overall ODFL gets a fundamental rating of 6 out of 10. We evaluated ODFL against 40 industry peers in the Ground Transportation industry. ODFL gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, ODFL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ODFL had positive earnings in the past year.
In the past year ODFL had a positive cash flow from operations.
ODFL had positive earnings in each of the past 5 years.
In the past 5 years ODFL always reported a positive cash flow from operatings.
1.2 Ratios
ODFL has a Return On Assets of 20.91%. This is amongst the best in the industry. ODFL outperforms 97.50% of its industry peers.
ODFL has a Return On Equity of 27.12%. This is amongst the best in the industry. ODFL outperforms 92.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.94%, ODFL belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
ODFL had an Average Return On Invested Capital over the past 3 years of 26.98%. This is significantly above the industry average of 8.58%.
The 3 year average ROIC (26.98%) for ODFL is well above the current ROIC(22.94%). The reason for the recent decline needs to be investigated.
| 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's Profit Margin of 20.04% is amongst the best of the industry. ODFL outperforms 82.50% of its industry peers.
ODFL's Profit Margin has improved in the last couple of years.
The Operating Margin of ODFL (26.10%) is better than 85.00% of its industry peers.
ODFL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 89.31%, ODFL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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
ODFL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ODFL has been reduced compared to 1 year ago.
ODFL has less shares outstanding than it did 5 years ago.
ODFL has a better debt/assets ratio than last year.
2.2 Solvency
ODFL has an Altman-Z score of 19.93. This indicates that ODFL is financially healthy and has little risk of bankruptcy at the moment.
ODFL has a Altman-Z score of 19.93. This is amongst the best in the industry. ODFL outperforms 100.00% of its industry peers.
The Debt to FCF ratio of ODFL is 0.07, which is an excellent value as it means it would take ODFL, only 0.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ODFL (0.07) is better than 100.00% of its industry peers.
ODFL has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
ODFL has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. ODFL outperforms 92.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 19.93 |
ROIC/WACC2.39
WACC9.59%
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.
Looking at the Current ratio, with a value of 1.32, ODFL is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
A Quick Ratio of 1.32 indicates that ODFL should not have too much problems paying its short term obligations.
ODFL has a Quick ratio of 1.32. This is in the better half of the industry: ODFL outperforms 67.50% 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%.
The Earnings Per Share has been growing by 16.53% on average over the past years. This is quite good.
Looking at the last year, ODFL shows a decrease in Revenue. The Revenue has decreased by -2.63% in the last year.
ODFL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.19% yearly.
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 10.27% on average per year.
Based on estimates for the next years, ODFL will show a small growth in Revenue. The Revenue will grow by 6.12% on average per year.
EPS Next Y-5.26%
EPS Next 2Y4.69%
EPS Next 3Y7.97%
EPS Next 5Y10.27%
Revenue Next Year-2.66%
Revenue Next 2Y2.4%
Revenue Next 3Y3.99%
Revenue Next 5Y6.12%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.09 indicates a quite expensive valuation of ODFL.
ODFL's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ODFL to the average of the S&P500 Index (27.52), we can say ODFL is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 27.59, the valuation of ODFL can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ODFL is on the same level as its industry peers.
ODFL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.09 | ||
| Fwd PE | 27.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ODFL is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ODFL indicates a somewhat cheap valuation: ODFL is cheaper than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.1 | ||
| EV/EBITDA | 19.19 |
4.3 Compensation for Growth
ODFL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.88
EPS Next 2Y4.69%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, ODFL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.46, ODFL has a dividend in line with its industry peers.
With a Dividend Yield of 0.65, ODFL pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
On average, the dividend of ODFL grows each year by 35.65%, which is quite nice.
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
ODFL pays out 19.72% of its income as dividend. This is a sustainable payout ratio.
ODFL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.72%
EPS Next 2Y4.69%
EPS Next 3Y7.97%
165.73
-2 (-1.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners81.89%
Inst Owner Change-0.06%
Ins Owners10.06%
Ins Owner Change6.79%
Market Cap35.02B
Analysts69.38
Price Target172.29 (3.96%)
Short Float %5.68%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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)-0.12%
PT rev (3m)-13.32%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)-9.79%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)-9.17%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-4.55%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-4.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.09 | ||
| Fwd PE | 27.59 | ||
| P/S | 6.11 | ||
| P/FCF | 42.1 | ||
| P/OCF | 22.28 | ||
| P/B | 8.27 | ||
| P/tB | 8.27 | ||
| EV/EBITDA | 19.19 |
EPS(TTM)5.33
EY3.22%
EPS(NY)6.01
Fwd EY3.62%
FCF(TTM)3.94
FCFY2.38%
OCF(TTM)7.44
OCFY4.49%
SpS27.11
BVpS20.04
TBVpS20.04
PEG (NY)N/A
PEG (5Y)1.88
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 | 19.93 |
F-Score7
WACC9.59%
ROIC/WACC2.39
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-5.26%
EPS Next 2Y4.69%
EPS Next 3Y7.97%
EPS Next 5Y10.27%
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y3.42%
Revenue growth 5Y7.19%
Sales Q2Q%-5.84%
Revenue Next Year-2.66%
Revenue Next 2Y2.4%
Revenue Next 3Y3.99%
Revenue Next 5Y6.12%
EBIT growth 1Y-9.03%
EBIT growth 3Y3.52%
EBIT growth 5Y13.53%
EBIT Next Year17.06%
EBIT Next 3Y14.64%
EBIT Next 5Y12.18%
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%