Now trading at a price of $334.1, Old Dominion Freight Line has moved 0.4% so far today.
Old Dominion Freight Line shares moved 25.4% over the last 52 weeks, with a high of $381.81 and a low of $231.31. During this time, the stock outperformed the S&P 500 index by 31.0%. As of January 2022, the company's 50-day average price is $344.0. Old Dominion Freight Line, Inc. operates as a less-than-truckload (LTL) motor carrier in the United States and North America. The large-cap Industrials company has 23,471 full time employees and is based in Thomasville, NC. Old Dominion Freight Line has returned a 0.4% dividend yield over the last 12 months.
Exceptional EPS Growth with Low Leverage Levels:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $4,109 | $4,015 | $5,256 | $6,260 |
| Revenue Growth | n/a | -2.29% | 30.91% | 19.1% |
| Gross Margins | 28.5% | 30.6% | 33.8% | 36.0% |
| Gross Margins Growth | n/a | 7.37% | 10.46% | 6.51% |
| Operating Margins | 19.9% | 22.6% | 26.5% | 29.4% |
| Operating Margins Growth | n/a | 13.57% | 17.26% | 10.94% |
| Net Margins | 14.98% | 16.75% | 19.68% | 22.0% |
| Net Margins Growth | n/a | 11.82% | 17.49% | 11.79% |
| Earnings Per Share | $5.11 | $5.68 | $8.89 | $12.17 |
| EPS Growth | n/a | 11.15% | 56.51% | 36.9% |
| Diluted Shares (MM) | 121 | 118 | 116 | 110 |
| Free Cash Flow (MM) | $505 | $708 | $663 | $916 |
| FCF Growth | n/a | 40.31% | -6.41% | 38.32% |
| Capital Expenditures (MM) | -$479 | -$225 | -$550 | -$775 |
| Net Debt / EBITDA | nan | nan | nan | -0.05 |
Old Dominion Freight Line Is Fairly Priced at Current Levels:
Compared to the Industrials sector's average of 20.49, Old Dominion Freight Line has a trailing twelve month P/E ratio of 27.5 and, according to its EPS guidance of 13.27, an expected P/E ratio of 25.2. Old Dominion Freight Line's PEG ratio is 1.05 based on its 26.9% compound average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 16.0%, because the growth rate implied by Old Dominion Freight Line's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 1.76, which suggests that the company's shares are actually overvalued.
Old Dominion Freight Line's P/B ratio is 10.1 compared to its sector average of 3.78. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 333.7% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 7.96 * 33.141) = $77.04
Old Dominion Freight Line's strong cash flow trend and reasonable levels of debt attenuate the company's lofty valuation in terms of earnings and assets.
Old Dominion Freight Line Is the Subject of Mixed Market Indicators:
18 analysts are following Old Dominion Freight Line and have set target prices ranging from $260.0 to $405.0 per share. On average, they have given the company a rating of hold. At the current price of $334.1, ODFL is trading -3.98% away from its average analyst target price of $347.94 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 4.8% of the company's shares are tied to short positions. Institutions own 77.4% of Old Dominion Freight Line's shares, while the insider ownership rate stands at 12.63%. The biggest shareholder is the Vanguard Group, Inc. with a 10% stake in the company worth approximately $3,605,218,373.
