Old Dominion Freight Line, Inc. (ODFL) Company Bio
Old Dominion Freight Line offers a broad range of value-added services including international freight forwarding, container drayage, truckload brokerage, supply chain consulting and warehousing. The company was founded in 1934 and is based in Thomasville, North Carolina.
ODFL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Old Dominion Freight Line Inc. To summarize, we found that Old Dominion Freight Line Inc ranked in the 67th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 157%. As for the metrics that stood out in our discounted cash flow analysis of Old Dominion Freight Line Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 821.51; that's higher than 99.01% of US stocks in the Industrials sector that have positive free cash flow.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately merely 4.02% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ODFL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 55.81% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Old Dominion Freight Line Inc? See CLH, STN, GPN, TNET, and GFF.
A couple of reports from less-than-truckload carriers show trends are beginning to turn positive on a year-over-year comparison. Old Dominion Freight Line (NASDAQ: ODFL ) reported a modest increase in revenue per day for the month of August. The Thomasville, North Carolina-based carrier said in a Thursday press release the metric was up 1.3% compared to August 2019. In its second-quarter filing, the company reported a 2.9% year-over-year revenue decline during July, following an 11.4% drop in June. "We are encouraged by recent trends that contributed to the year-over-year increase in our LTL revenue per day for August. This positive inflection in our revenue is a result of improving demand trends from our customers in the industrial and retail sectors, which are increasingly prioritizin...
I should have known better than to think that valuation was going to be an impediment to further gains with Old Dominion (ODFL), as the shares of this best-in-class less-than-truckload carrier have shot up another 40% since my late April update. Not only has Old Dominion management reported that the...
Stephen Simpson, CFA on Seeking Alpha | September 1, 2020
Old Dominion Freight Line (NASDAQ: ODFL ) has already opened nine new less-than-truckload (LTL) terminals so far in 2019, it announced Monday. The Thomasville, North Carolina-based carrier's network of service centers now stands at 238. The facilities have been added in new and existing markets in efforts to expand capacity and improve shipping times. "Even during an unprecedented time, we will continue to invest in our network and look for additional ways to improve our operations. Our goal is to build capacity to win market share, while shortening response time and transit times. Our investments align with our long-term strategic plan of investing in our business," Senior Vice President of Strategic Planning Chip Overbey said in a news release. The company … Full story available on Be...
With numerous metrics to determine how a less-than-truckload (LTL) company is doing, the CFO at Old Dominion Freight Line, Inc. (NYSE: ODFL) talked this week about the measurement that his company likes to look at: revenue per shipment.In a conference call with earnings analysts following the release of the company's strong second-quarter earnings report, ODFL CFO Adam Satterfield said that metric is one that the company favors as a barometer of the strength of the business. "We believe revenue per shipment is a better measurement, as we focus internally on maintaining a positive spread between our revenue and cost per shipment," Satterfield said.Focusing on that spread is vital, Satterfield said. "Managing those two factors [revenue and cost per shipment] has really ...