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:
We started the process of determining a valid price forecast for Old Dominion Freight Line Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Old Dominion Freight Line Inc ranked in the 47th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for ODFL, they are:
Interest coverage, a measure of earnings relative to interest payments, is 414.04 -- which is good for besting 99.29% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately only 4.75% 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 3%; for context, that number is higher than 53.32% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CSX, FC, HII, NSC, and HURN can be thought of as valuation peers to ODFL, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Less-than-truckload volumes appeared to remain elevated during December, according to Amit Mehrotra, managing director and head of transportation and shipping research at Deutsche Bank (NYSE: DB ). The December data indicates the sequential monthly trends were in line with "typical seasonality," however off of a higher base. The firm's Sunday report to clients showed activity at Old Dominion Freight Line (NASDAQ: ODFL ) terminals was down 10.1% from November to December, in line with the carrier's historical 9.8% sequential decline in shipments. "Our geofencing dataset shows typical seasonality in December, but this is off very solid levels in recent months. And we also believe pricing dynamics remain very strong," Mehrotra said in the note. Mehrotra is estimating a 9% sequential declin...
Old Dominion Freight Line, Inc. (Nasdaq: ODFL) announced today that it plans to release its fourth quarter and year-end 2020 financial results before opening of trading on Thursday, February 4, 2021. The Company will also hold a conference call to discuss its financial results and outlook at 10:00 a.m. (Eastern Time) on Thursday, February 4, 2021.