NASDAQ:ODFL: good value for what you're paying.

Last update: Apr 2, 2024

Uncover the potential of OLD DOMINION FREIGHT LINE (NASDAQ:ODFL) as our stock screener's choice for an undervalued stock. NASDAQ:ODFL maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Understanding NASDAQ:ODFL's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:ODFL has received a 7 out of 10:

75.68% of the companies in the same industry are more expensive than ODFL, based on the Price/Forward Earnings ratio.
ODFL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, ODFL is valued a bit cheaper than the industry average as 62.16% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ODFL is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ODFL has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ODFL's earnings are expected to grow with 33.87% in the coming years.

Profitability Insights: NASDAQ:ODFL

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:ODFL, the assigned 9 is noteworthy for profitability:

ODFL has a Return On Assets of 22.49%. This is amongst the best in the industry. ODFL outperforms 100.00% of its industry peers.
The Return On Equity of ODFL (29.11%) is better than 94.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.77%, ODFL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ODFL is significantly above the industry average of 7.73%.
ODFL's Profit Margin of 21.13% is amongst the best of the industry. ODFL outperforms 86.49% of its industry peers.
In the last couple of years the Profit Margin of ODFL has grown nicely.
ODFL has a Operating Margin of 27.97%. This is amongst the best in the industry. ODFL outperforms 86.49% of its industry peers.
ODFL's Operating Margin has improved in the last couple of years.
ODFL has a better Gross Margin (87.75%) than 97.30% of its industry peers.

Assessing Health for NASDAQ:ODFL

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ODFL has achieved a 10 out of 10:

An Altman-Z score of 14.55 indicates that ODFL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 14.55, ODFL belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
ODFL has a debt to FCF ratio of 0.10. This is a very positive value and a sign of high solvency as it would only need 0.10 years to pay back of all of its debts.
ODFL's Debt to FCF ratio of 0.10 is amongst the best of the industry. ODFL outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that ODFL is not too dependend on debt financing.
ODFL has a better Debt to Equity ratio (0.01) than 91.89% of its industry peers.
A Current Ratio of 2.10 indicates that ODFL has no problem at all paying its short term obligations.
ODFL's Current ratio of 2.10 is amongst the best of the industry. ODFL outperforms 94.59% of its industry peers.
A Quick Ratio of 2.10 indicates that ODFL has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.10, ODFL belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.

Growth Analysis for NASDAQ:ODFL

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:ODFL boasts a 5 out of 10:

ODFL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.30% yearly.
Based on estimates for the next years, ODFL will show a quite strong growth in Revenue. The Revenue will grow by 9.86% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of ODFL

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.