OLD DOMINION FREIGHT LINE (ODFL) Stock Fundamental Analysis
NASDAQ:ODFL - Nasdaq - US6795801009 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ODFL. ODFL was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
ODFL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 22.96%, ODFL belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
The Return On Equity of ODFL (29.83%) is better than 92.11% of its industry peers.
ODFL has a Return On Invested Capital of 25.34%. This is amongst the best in the industry. ODFL outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ODFL is significantly above the industry average of 7.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.96% | ||
| ROE | 29.83% | ||
| ROIC | 25.34% |
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 better Profit Margin (21.03%) than 78.95% of its industry peers.
ODFL's Profit Margin has improved in the last couple of years.
The Operating Margin of ODFL (27.53%) is better than 84.21% 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 88.70%, ODFL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ODFL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.53% | ||
| PM (TTM) | 21.03% | ||
| GM | 88.7% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ODFL is creating value.
ODFL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ODFL has been reduced compared to 5 years ago.
ODFL has a better debt/assets ratio than last year.
2.2 Solvency
ODFL has an Altman-Z score of 23.36. This indicates that ODFL is financially healthy and has little risk of bankruptcy at the moment.
ODFL's Altman-Z score of 23.36 is amongst the best of the industry. ODFL outperforms 100.00% of its industry peers.
ODFL has a debt to FCF ratio of 0.06. This is a very positive value and a sign of high solvency as it would only need 0.06 years to pay back of all of its debts.
The Debt to FCF ratio of ODFL (0.06) is better than 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 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Altman-Z | 23.36 |
ROIC/WACC2.68
WACC9.47%
2.3 Liquidity
ODFL has a Current Ratio of 1.33. This is a normal value and indicates that ODFL is financially healthy and should not expect problems in meeting its short term obligations.
ODFL's Current ratio of 1.33 is fine compared to the rest of the industry. ODFL outperforms 68.42% of its industry peers.
ODFL has a Quick Ratio of 1.33. 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 Quick ratio, with a value of 1.33, ODFL is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
ODFL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.66%.
ODFL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.53% yearly.
ODFL shows a decrease in Revenue. In the last year, the revenue decreased by -0.88%.
ODFL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.19% yearly.
EPS 1Y (TTM)-2.66%
EPS 3Y7.23%
EPS 5Y16.53%
EPS Q2Q%-16.33%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y3.42%
Revenue growth 5Y7.19%
Sales Q2Q%-7.34%
3.2 Future
The Earnings Per Share is expected to grow by 13.70% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.60% on average over the next years. This is quite good.
EPS Next Y4.56%
EPS Next 2Y11.45%
EPS Next 3Y11.32%
EPS Next 5Y13.7%
Revenue Next Year4.21%
Revenue Next 2Y7%
Revenue Next 3Y8.49%
Revenue Next 5Y8.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 32.92 indicates a quite expensive valuation of ODFL.
ODFL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. ODFL is around the same levels.
ODFL is valuated quite expensively with a Price/Forward Earnings ratio of 31.49.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ODFL indicates a slightly more expensive valuation: ODFL is more expensive than 63.16% of the companies listed in the same industry.
ODFL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.92 | ||
| Fwd PE | 31.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ODFL is valued a bit more expensive than 68.42% of the companies in the same industry.
65.79% of the companies in the same industry are more expensive than ODFL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.96 | ||
| EV/EBITDA | 21.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ODFL does not grow enough to justify the current Price/Earnings ratio.
ODFL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.23
PEG (5Y)1.99
EPS Next 2Y11.45%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, ODFL is not a good candidate for dividend investing.
ODFL's Dividend Yield is comparable with the industry average which is at 1.35.
Compared to an average S&P500 Dividend Yield of 2.29, ODFL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
On average, the dividend of ODFL grows each year by 35.73%, 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)35.73%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
17.00% 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.
DP17%
EPS Next 2Y11.45%
EPS Next 3Y11.32%
180.4
-16.85 (-8.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners80.16%
Inst Owner Change-0.1%
Ins Owners10.03%
Ins Owner Change2.47%
Market Cap38.52B
Analysts67.33
Price Target203.45 (12.78%)
Short Float %4.83%
Short Ratio5.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.8
Dividend Growth(5Y)35.73%
DP17%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.62%
Min EPS beat(2)-1.09%
Max EPS beat(2)-0.14%
EPS beat(4)1
Avg EPS beat(4)-0.53%
Min EPS beat(4)-2.04%
Max EPS beat(4)1.16%
EPS beat(8)3
Avg EPS beat(8)0.07%
EPS beat(12)7
Avg EPS beat(12)1.8%
EPS beat(16)11
Avg EPS beat(16)2.18%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.4%
Max Revenue beat(2)-1.98%
Revenue beat(4)0
Avg Revenue beat(4)-2.58%
Min Revenue beat(4)-3.4%
Max Revenue beat(4)-1.98%
Revenue beat(8)0
Avg Revenue beat(8)-2.96%
Revenue beat(12)2
Avg Revenue beat(12)-2.11%
Revenue beat(16)6
Avg Revenue beat(16)-1.27%
PT rev (1m)-2.83%
PT rev (3m)1.65%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)-4.2%
EPS NY rev (3m)-4.87%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.92 | ||
| Fwd PE | 31.49 | ||
| P/S | 6.5 | ||
| P/FCF | 38.96 | ||
| P/OCF | 22.72 | ||
| P/B | 9.22 | ||
| P/tB | 9.22 | ||
| EV/EBITDA | 21.35 |
EPS(TTM)5.48
EY3.04%
EPS(NY)5.73
Fwd EY3.18%
FCF(TTM)4.63
FCFY2.57%
OCF(TTM)7.94
OCFY4.4%
SpS27.75
BVpS19.56
TBVpS19.56
PEG (NY)7.23
PEG (5Y)1.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.96% | ||
| ROE | 29.83% | ||
| ROCE | 33.48% | ||
| ROIC | 25.34% | ||
| ROICexc | 25.73% | ||
| ROICexgc | 25.73% | ||
| OM | 27.53% | ||
| PM (TTM) | 21.03% | ||
| GM | 88.7% | ||
| FCFM | 16.69% |
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-Score8
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.06 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 207.49% | ||
| Cap/Sales | 11.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.97% | ||
| Profit Quality | 79.36% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 23.36 |
F-Score8
WACC9.47%
ROIC/WACC2.68
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.66%
EPS 3Y7.23%
EPS 5Y16.53%
EPS Q2Q%-16.33%
EPS Next Y4.56%
EPS Next 2Y11.45%
EPS Next 3Y11.32%
EPS Next 5Y13.7%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y3.42%
Revenue growth 5Y7.19%
Sales Q2Q%-7.34%
Revenue Next Year4.21%
Revenue Next 2Y7%
Revenue Next 3Y8.49%
Revenue Next 5Y8.6%
EBIT growth 1Y-1.15%
EBIT growth 3Y3.52%
EBIT growth 5Y13.53%
EBIT Next Year29.87%
EBIT Next 3Y19.39%
EBIT Next 5Y16.97%
FCF growth 1Y72.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.46%
OCF growth 3YN/A
OCF growth 5YN/A