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 76th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. 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 -- which is good for besting 99.27% 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 merely 3.95% 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 54.37% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DY, ASR, MNTX, SB, and CMCO 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.
The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 823 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of June 30th, when the S&P 500 Index was trading around the […]
Another equity research analyst has pulled up earnings estimates for trucking companies. Citing recent conversations with management teams from several transportation companies, Deutsche Bank (NYSE: DB) analyst Amit Mehrotra raised his earnings per share (EPS) forecasts for the rest of 2020 and all of 2021 on the carriers he follows."The bottom line is we expect Transportation results to be very strong across the board, with likely more to come over the course of the next several quarters," stated Mehrotra in a weekend note to clients.On average he increased his third-quarter earnings estimates for truckload (TL) and less-than-truckload (LTL) companies by approximately 18%. Mehrotra said his third-quarter estimates now range between 12% and 32% higher than the current consensu...