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ODFL Old Dominion Freight Line, Inc. - Fundamental Analysis

NEUTRAL
ODFL Stock | Fundamental Analysis & Investment Insights
NASDAQ Industrials Trucking
Current Price
$132.29
Analyst Target
$156.96
+18.6% Upside
52W High
$228.72
52W Low
$131.46

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 16, 2025
Market cap
$28.32B
P/E
26.62
ROE
25.1%
Profit margin
19.0%
Debt/Equity
0.02
Dividend yield
0.85%

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
72%
Analysis Accuracy
Old Dominion Freight Line (ODFL) trades at $132.29, down 40.4% over the past year amid declining revenue and earnings growth, despite maintaining industry-leading profitability with an 18.97% profit margin and 25.66% operating margin. The stock appears reasonably valued relative to peers, with a P/E of 26.62 below the sector average of 31.89, though forward P/E of 22.42 suggests some earnings recovery is priced in. While the company’s balance sheet is exceptionally strong (Debt/Equity: 0.02), recent negative growth trends and lackluster price momentum contrast with a robust historical earnings track record and consistent analyst target of $156.95 implying 18.6% upside. Neutral stance reflects balancing of high-quality fundamentals against cyclical headwinds in trucking and near-term growth challenges.

Key Strengths

Exceptional profitability: 18.97% net margin and 25.66% operating margin significantly above sector averages of 13.67% and 20.48% respectively
Superior return metrics: ROE of 25.06% outperforms peer average ROE of 31.90% despite lower leverage, indicating efficient capital use
Extremely conservative capital structure: Debt/Equity ratio of 0.02 provides substantial financial flexibility and resilience in downturns
Consistent earnings beat history: 21 out of 25 quarters beat or met estimates over last 6+ years, demonstrating operational predictability
Attractive valuation relative to quality: P/E of 26.62 below sector average of 31.89 while maintaining higher margins and lower leverage

Key Risks

Negative growth trajectory: Revenue down 4.3% YoY and earnings down 10.5% YoY indicate cyclical or structural demand weakness
Deteriorating price momentum: 1-year return of -40.4% and 6-month return of -22.5% reflect investor skepticism on near-term outlook
Forward earnings deceleration: Q/Q EPS growth of -12.2% most recent period raises concerns about margin sustainability
Valuation premium risk: Despite being below sector P/E, high absolute multiples (P/E 26.6x, Price/Sales 5.08x) increase sensitivity to growth misses
Limited analyst conviction: 22 analysts cover but no formal recommendation provided, suggesting lack of consensus on catalyst
AI Fair Value Estimate
Based on comprehensive analysis
$156.95
+18.6% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
74
Strong
Value
74
Future
58
Past
82
Health
90
Dividend
65
AI Verdict
ODFL presents a high-quality operator in the trucking sector with best-in-class margins and financial health, yet trades at a discount to its historical levels and peer group due to near-term growth headwinds; the $156.95 analyst target implies meaningful upside, but weak recent momentum and negative earnings growth constrain bullish conviction.
Key drivers: Profitability leadership (25.66% operating margin), Balance sheet strength (0.02 Debt/Equity), Valuation gap vs peers despite superior fundamentals
Confidence
75%
Value
74/100

ODFL trades at a discount to the industrials sector on P/E despite superior margins and lower leverage, suggesting relative value, though absolute multiples remain elevated for a company with negative growth

Positives
  • P/E of 26.62 below sector average of 31.89 despite higher profitability
  • Forward P/E of 22.42 suggests pricing in of earnings recovery
Watchpoints
  • High absolute valuation: P/E 26.6x and Price/Sales 5.08x leave little margin for error
  • Lack of EV/EBITDA and ROIC data limits full capital efficiency assessment
Future
58/100

Near-term growth metrics are negative and price momentum remains weak across 1Y to 1W horizons, though forward multiples and analyst targets suggest anticipation of a cyclical rebound in freight demand

Positives
  • Analyst target price of $156.95 implies 18.6% upside, signaling confidence in recovery
  • Forward P/E of 22.42 reflects expectation of earnings rebound
Watchpoints
  • Revenue growth of -4.3% YoY and Q/Q earnings decline of -12.2% point to ongoing softness
  • No visible inflection in price trends: 50-day and 200-day moving averages unavailable but 1Y return of -40.4% shows deep underperformance
Past
82/100

ODFL has demonstrated exceptional earnings execution over the past six years with consistent beats and margin expansion, but recent quarters show weakening trends amid a sharp 40.4% share price decline over the past year

Positives
  • Long-term earnings consistency: 21 of last 25 quarters beat or met estimates
  • High average earnings surprise of +5.9% over last 4 quarters and +6.2% over last 10
Watchpoints
  • Recent earnings misses: 2 of last 4 quarters missed or barely met expectations
  • 1-year share price return of -40.4% underperforms both sector and broader market
Health
90/100

ODFL’s financial health is best-in-class with negligible leverage and solid liquidity, significantly outperforming peers like NSC (1.16 D/E) and CARR (0.83 D/E), providing a strong buffer during economic downturns

Positives
  • Near-zero leverage with Debt/Equity of 0.02, among the lowest in the sector
  • Strong liquidity: Current ratio of 1.20 and quick ratio of 1.06 indicate solid short-term financial stability
Watchpoints
  • Missing total cash and debt figures limit full liquidity runway assessment
  • No free cash flow or operating cash flow data available for trend analysis
Dividend
65/100

ODFL maintains a conservative and sustainable dividend policy with a low payout ratio, though the 0.85% yield offers limited appeal in a sector where income generation is often a key consideration

Positives
  • Low payout ratio of 22.13% ensures high sustainability and room for future increases
  • Dividend yield of 0.85% provides modest income with strong coverage
Watchpoints
  • Yield is below peer average and may not attract income-focused investors
  • Lack of 5-year yield history limits assessment of dividend growth policy

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$132.29
Analyst Target
$156.96
Upside/Downside
+18.6%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for ODFL and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
ODFL
Old Dominion Freight Line, Inc.
Primary
+31.3% -15.5% -40.4% -22.5% -2.0% -5.4%
CPRT
Copart, Inc.
Peer
+41.6% +32.4% -28.4% -35.6% -7.8% +1.4%
GWW
W.W. Grainger, Inc.
Peer
+136.1% +63.6% -20.5% -15.5% -3.1% -2.8%
CARR
Carrier Global Corporation
Peer
+43.0% +27.2% -26.9% -28.0% -5.1% -5.9%
FAST
Fastenal Company
Peer
+89.3% +68.9% +0.6% -1.6% -3.7% -1.0%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
26.62
Forward P/E
22.42
PEG Ratio
N/A
P/B Ratio
6.5
P/S Ratio
5.08
EV/Revenue
4.97
EV/EBITDA
15.81
Market Cap
$28.32B

Profitability

Profit margins and return metrics

Profit Margin 18.97%
Operating Margin 25.66%
Gross Margin 39.3%
ROE 25.06%
ROA 15.89%

Growth

Revenue and earnings growth rates

Revenue Growth -4.3%
Earnings Growth -10.5%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth -12.2%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.02
Low debt
Current Ratio
1.2
Good
Quick Ratio
1.06
Good
Cash/Share
$0.22

Quarterly Earnings History

EPS performance vs analyst estimates

2026-02-04
$N/A
2025-10-29
$1.28
+5.2% surprise
2025-07-30
$1.27
-1.2% surprise
2025-04-23
$1.19
+4.0% surprise

Industrials Sector Comparison

Comparing ODFL against 28 companies in the Industrials sector (6 bullish, 21 neutral, 1 bearish)
P/E Ratio
26.62
This Stock
vs
32.92
Sector Avg
-19.2% (Discount)
Return on Equity (ROE)
25.06%
This Stock
vs
31.08%
Sector Avg
-19.4% (Below Avg)
Profit Margin
18.97%
This Stock
vs
13.32%
Sector Avg
+42.4% (Superior)
Debt to Equity
0.02
This Stock
vs
1.21
Sector Avg
-98.4% (Less Debt)
Revenue Growth
-4.3%
This Stock
vs
6.01%
Sector Avg
-171.5% (Slower)
Current Ratio
1.2
This Stock
vs
1.82
Sector Avg
-34.0% (Weaker)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
ODFL
Old Dominion Freight Line, Inc.
NEUTRAL $28.32B 26.62 25.1% 19.0% $132.29
CPRT
Copart, Inc.
BULLISH $40.28B 25.84 18.5% 33.4% $41.08
GWW
W.W. Grainger, Inc.
NEUTRAL $44.46B 25.97 46.7% 9.7% $926.21
CARR
Carrier Global Corporation
NEUTRAL $46.46B 33.81 10.0% 18.1% $54.1
FAST
Fastenal Company
NEUTRAL $46.78B 38.16 32.7% 15.3% $40.45

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-10-31 GANTT GREG C Director Stock Award 1,538 -
2025-10-01 GANTT GREG C Director Stock Award 1,538 -
2025-08-29 GANTT GREG C Director Stock Award 1,538 -
2025-08-25 CONGDON EARL E Officer Gift 22,350 -
2025-08-21 CONGDON EARL E Officer Gift 4,840 -
2025-08-01 GANTT GREG C Director Stock Award 1,538 -
2025-07-01 GANTT GREG C Director Stock Award 1,538 -
2025-05-30 GANTT GREG C Director Stock Award 5,103 -
2025-05-21 KASARDA JOHN D Director Stock Award 1,029 -
2025-05-21 GANTT GREG C Director Stock Award 1,029 -
2025-05-21 CONGDON JOHN R JR Director Stock Award 1,029 -
2025-05-21 MILLER CHERYL S Director Stock Award 1,029 -
2025-05-21 AAHOLM SHERRY A. Director Stock Award 1,029 -
2025-05-21 GABOSCH BRADLEY R Director Stock Award 1,029 -
2025-05-21 STALLINGS WENDY T Director Stock Award 1,029 -
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
NONE
22 analysts
JP Morgan
2025-10-30
Maintains
Neutral Neutral
Citigroup
2025-10-30
Maintains
Buy Buy
Evercore ISI Group
2025-10-30
Maintains
In-Line In-Line
Raymond James
2025-10-30
Maintains
Outperform Outperform
Wells Fargo
2025-10-30
Maintains
Underweight Underweight
Stephens & Co.
2025-10-30
Maintains
Overweight Overweight
Stifel
2025-10-28
Maintains
Buy Buy
Raymond James
2025-10-14
Maintains
Outperform Outperform
JP Morgan
2025-10-08
Maintains
Neutral Neutral
UBS
2025-10-03
Maintains
Neutral Neutral