Old Dominion Freight Line Inc
Exchange: NASDAQSector: IndustrialsIndustry: Trucking
Old Dominion Freight Line, Inc. is one of the largest North American less-than-truckload (“LTL”) motor carriers and provides regional, inter-regional and national LTL services through a single integrated, union-free organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental United States. The Company also maintains strategic alliances with other carriers to provide LTL services throughout North America. In addition to its core LTL services, the Company offers a range of value-added services including container drayage, truckload brokerage and supply chain consulting.
Did you know?
Price sits at 81% of its 52-week range.
Current Price
$205.81
-3.12%GoodMoat Value
$111.97
45.6% overvaluedProfile
Valuation (TTM)
Market Cap$43.03B
P/E42.04
EV$39.17B
P/B9.98
Shares Out209.10M
P/Sales7.83
Revenue$5.50B
EV/EBITDA24.63
Old Dominion Freight Line Inc (ODFL) Stock Analysis
GoodMoat Analysis
Old Dominion Freight Line is a high-quality trucking company with a strong operational moat, but it is currently priced at a significant premium to its estimated intrinsic value. The business demonstrates exceptional profitability and capital efficiency, yet faces near-term revenue headwinds. For a value investor, this presents a classic 'great company, expensive stock' scenario.
Read full analysis
Old Dominion Freight Line (ODFL) is a leading less-than-truckload (LTL) carrier in the US, transporting freight for other businesses. Applying the GoodMoat framework, the company exhibits a durable competitive advantage, likely scoring high on criteria like operational excellence (a form of scale privilege), strategic network density, and a strong service culture, which collectively create high switching costs and pricing power. This is evidenced by its exceptional financial quality: an operating margin of 24.8% and an ROE of 23.7% far exceed industry norms and the framework's high-return thresholds, indicating a wide moat. The balance sheet is pristine, with a Debt/Equity ratio near zero. However, the stock fails the valuation gate of the Decision Framework. At a price of $189.05, it trades at a P/E of 38.6x against a GoodMoat Target of $111.97, implying the market price is nearly 70% above the estimated fair value. This offers a negative margin of safety. Furthermore, the company shows a revenue decline of -5.7% YoY, a potential medium-confidence red flag for growth deceleration. While ODFL is a textbook example of a moat-protected, high-quality business, its current valuation is deeply unfavourable from a value investing perspective, requiring a substantial price correction to become attractive. Analysis based on data as of 2024-05-15.
Market Cap$43.03B
Current Price$205.81
P/E Ratio42.04
Forward P/E—
PEG Ratio-3.72
EPS$4.84
Book Value$20.62
P/B Ratio9.98
ODFL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 11.9% FCF growth (CAGR)
Cash vs Debt
Net Cash: 80M
Revenue
4.1B
FY19
4.0B
FY20
5.3B
FY21
6.3B
FY22
5.9B
FY23
5.8B
FY24
5.5B
FY25
Net Income
616M
FY19
673M
FY20
1.0B
FY21
1.4B
FY22
1.2B
FY23
1.2B
FY24
1.0B
FY25
ODFL 52-Week Range
$125.89
$224.42
50-Day MA: $201.11200-Day MA: $165.52
Did you know?
Trading 46% above its estimated fair value of $111.97.
Old Dominion Freight Line Inc (ODFL) Financial Summary
Old Dominion Freight Line Inc (ODFL) is a Industrials company in the Trucking industry, listed on NASDAQ. The stock currently trades at $205.81 with a market capitalization of $43.03B.
Key valuation metrics include a P/E ratio of 42.04, price-to-book ratio of 9.98, and EPS of $4.84. The company reports a profit margin of 18.6% and return on equity of 23.7%.
ODFL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $43.03B |
| P/E Ratio | 42.04 |
| EPS | $4.84 |
| P/B Ratio | 9.98 |
| P/S Ratio | 7.83 |
| EV/EBITDA | 24.63 |
| Dividend Yield | 0.55% |
| Profit Margin | 18.6% |
| Return on Equity | 23.7% |
| Debt/Equity | 0.01 |
ODFL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $4.11B | $615.52M |
| FY20 | $4.02B | $672.68M |
| FY21 | $5.26B | $1.03B |
| FY22 | $6.26B | $1.38B |
| FY23 | $5.87B | $1.24B |
| FY24 | $5.81B | $1.19B |
| FY25 | $5.50B | $1.02B |
Old Dominion Freight Line Inc (ODFL) Valuation
Based on GoodMoat's DCF model, Old Dominion Freight Line Inc has a fair value estimate of $111.97. At the current price of $205.81, the stock appears 83.8% overvalued relative to our intrinsic value estimate.
ODFL Quality Indicators
Old Dominion Freight Line Inc maintains a profit margin of 18.6% and an operating margin of 24.8%. Return on equity stands at 23.7%. The current ratio is 1.44. Debt-to-equity ratio is 0.01.
About Old Dominion Freight Line Inc
Old Dominion Freight Line, Inc. is one of the largest North American less-than-truckload (“LTL”) motor carriers and provides regional, inter-regional and national LTL services through a single integrated, union-free organization. Our service offerings, which include expedited transportation, are provided through an expansive network of service centers located throughout the continental United States. The Company also maintains strategic alliances with other carriers to provide LTL services throughout North America. In addition to its core LTL services, the Company offers a range of value-added services including container drayage, truckload brokerage and supply chain consulting.
ODFL Free Cash Flow
Old Dominion Freight Line Inc generated $1.00B in trailing twelve-month free cash flow, representing an FCF yield of 2.33%. This moderate FCF yield indicates reasonable cash generation.
ODFL Shares Outstanding
Old Dominion Freight Line Inc has 0.21 billion shares outstanding at a share price of $205.81, giving it a market capitalization of $43.03B.
ODFL Recent Insider Trades
Recent insider transactions at Old Dominion Freight Line Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| CONGDON EARL E (Chair Emeritus & Sr. Advisor) | SELL | 10,598 | $2.07M |
| CONGDON DAVID S (Executive Chairman) | SELL | 42,000 | $8.18M |
| Gabosch Bradley R (Director) | SELL | 3,134 | $608842.18 |