$220.25
arrow_drop_up0.86%Is ODFL a Buy or Sell based on AI Analysis?
Fundamental Analysis
Old Dominion Freight Line Inc (ODFL) has a strong operating margin of 28.15%, indicating efficient management of operational costs. Additionally, the company's net margin of 21.13% reflects its ability to convert revenue into profit effectively. ODFL also boasts a return on assets of 19.81% and a return on equity of 31.34%, highlighting its profitability and effectiveness in generating returns for shareholders. Moreover, with a current ratio of 2.1 and a quick ratio of 2.13, the company has a strong liquidity position, indicating its ability to meet short-term financial obligations. Furthermore, ODFL's price-to-sales ratio of 8.24 and price-to-book ratio of 11.35 suggest that the company's stock is relatively undervalued compared to its peers in the industry. The company's low debt-to-equity ratio of 0.05 indicates a conservative financial structure with a low level of leverage, reducing the risk of financial distress. Additionally, ODFL's gross margin of 34.04% and free cash flow margin of 8.22% further underscore its strong financial health and ability to generate cash flow. Overall, these fundamental indicators reflect ODFL's sound financial performance and solid position in the market.
Positive Development
The company's robust financials are driving the recent rally in its stock, as seen from the 9.4% increase in the stock price over the past month. Old Dominion Freight Line Inc. has been consistently outperforming its competitors, which indicates strong market position and growth potential. The company's strong trading days, such as the 1.20% increase on Tuesday, show that it is resilient in the face of market volatility.
Negative Development
Despite the strong performance, Old Dominion Freight Line Inc. has underperformed in some days, indicating potential market instability or a lack of investor confidence. The company's total debt to equity ratio is 0.0188, which could indicate a high level of financial leverage, potentially affecting its financial stability. The company's operating margin is only 0.2815, indicating a relatively low profit margin, which may be a concern for investors.
Technical Analysis
Old Dominion Freight Line Inc (ODFL) currently has a technical rating of NEUTRAL, with one technical buy indicator (ATR), four technical hold indicators (RSI, MACD, ADX, and ROC), and three technical sell indicators (CCI, WILLR, and STOCHRSI) for the month. The stock price has shown a slight increase of 1.73% in the past seven days, and the fifty-two-week price change percent is at 26.39%. The company's stock sector is classified as Industrials, with a sector change of 28.64% in the past year. Additionally, ODFL has an average operating profit margin growth of 3.25%, a trailing PE ratio of 39.53, and a return on equity of 31.34%. The stock has a market value score of 18, a market quality score of 71, and a market ownership score of 36, indicating mixed performance in these areas. The company pays dividends, with an annual dividend per share of $1.6 and a dividend yield of 0.47%. ODFL has a cumulative multiple of 22.8, indicating the stock's performance relative to its split history. Overall, ODFL's technical analysis suggests a neutral outlook, with a combination of buy, hold, and sell indicators influencing the stock's performance in the market.
Conclusion and recommendation
Old Dominion Freight Line Inc (ODFL) is a stock that has shown steady growth over the years, with a five-year price change percentage of 350.33%. The company has a market cap of $48.57B and a strong financial position, with a return on equity of 31.34% and a net margin of 21.13%. Additionally, ODFL has a low debt-to-equity ratio of 0.05, indicating a conservative approach to financing. The company also pays dividends, with an annual dividend per share of $1.60 and a trailing annual dividend yield of 0.47%. In conclusion, Old Dominion Freight Line Inc appears to be a solid investment opportunity for long-term investors. With strong financial performance, a history of dividend payments, and a focus on maintaining a healthy balance sheet, ODFL is well-positioned for continued growth. Despite some technical indicators suggesting a potential sell-off in the short term, the company's overall fundamentals and industry outlook remain positive. Investors looking for a stable and reliable addition to their portfolio may consider adding ODFL to their watchlist for further due diligence.