Old Dominion Freight Line, Inc. (ODFL)
POSITIVEFundamental
70
Price
$198.50
Market Cap
$41.90B
Part 1 · What the company is worth
Overview
Old Dominion Freight Line moves freight that is too small to fill a full truck — a few pallets or boxes rather than an entire trailer — picking up shipments from many customers, sorting them at regional service centers, and combining them onto trucks headed the same direction. It operates this less-than-truckload, or LTL, network itself across the United States with its own drivers, terminals and trucks rather than through franchisees or outside carriers, and adds services like expedited and guaranteed delivery.
How it makes money
Revenue is charged per shipment, based mainly on weight and distance, so it rises and falls with how much freight moves through the economy rather than with any subscription or long-term contract base. Because the network's fixed costs — terminals, trucks and staff — barely change with volume, profitability depends heavily on keeping trucks and terminals full: a small change in shipment density can swing operating margins by a large amount in either direction.
Competitive moat
Cost advantage · NarrowDecades of investment in a dense, non-union terminal network let Old Dominion run at some of the lowest costs and highest on-time delivery rates in the LTL industry, a combination that is hard for a new or smaller carrier to match quickly. That efficiency shows up in an industry-leading operating ratio, but the LTL market remains competitive on price, so the edge is durable rather than unassailable.
What drives demand
CyclicalLTL shipment volumes track industrial production, retail restocking and manufacturing activity closely, so freight demand slows sharply when the broader economy weakens — 2025 revenue fell as shipment volumes declined during a soft freight market. Pricing tends to be more resilient than volume, since carriers are reluctant to cut rates even when demand softens.
Key risks
- Freight cycle and industrial activity — Shipment volumes fall when industrial production, retail restocking and manufacturing activity slow, as happened in 2025; revenue and profitability move directly with the broader freight cycle.
- Fixed cost operating leverage — Terminals, trucks and drivers are largely fixed costs regardless of volume, so a drop in shipments cannot easily be matched by cost cuts, and operating margins compress quickly in a downturn.
- Driver and labor availability — The business depends on recruiting and retaining enough qualified drivers and dock workers; a shortage or higher wage costs would raise expenses or limit how much freight the network can move.
- Fuel price volatility — Diesel is a major operating cost; while fuel surcharges pass much of the cost through to customers, sharp price swings can still create timing mismatches that pressure margins.
Customer concentration
Top customers account for 16% of revenue
The customer base is highly diversified: the single largest customer represented about 4% of 2025 revenue, and the top 10 customers combined represented about 16%.
The case for
Buyers argue that Old Dominion's dense, non-union network gives it a durable cost and service advantage over LTL rivals, reflected in an industry-leading operating ratio, and that a highly diversified customer base with no meaningful concentration limits the damage any single account can do.
The case against
Sellers fear that the business is fundamentally tied to the industrial and freight cycle, that 2025's volume decline shows how quickly a soft economy erodes results, and that heavy fixed costs in terminals and trucks turn even a modest downturn in shipments into a larger hit to margins.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$5.60B
Trailing 12 months (through 6/30/2026)
Net Income
$1.09B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$955M
Total Equity
$4.31B
Total Liabilities
$1.16B
Current Ratio
1.89
Interest Coverage
-
Debt/EBITDA
0.01
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$160.21
Current Price
$198.50
Margin of Safety
-23.9%
Fair Value Range
$104.13 - $216.28
Estimation Methods
Valuation Metrics
P/E Ratio
38.75
ROE
23.7%
P/B Ratio
9.19
P/FCF
37.48
Gross Margin
-
ROIC
22.0%
Profitability Radar
Value Creation (Economic Moat)
ROIC
22.0%
WACC
11.1%
ROIC − WACC
+10.9 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (18)
- EPS shows upward trend
- EPS CAGR 8.39%
- Price CAGR 21.86%
- ROIC 22.0%
- Debt/Equity ratio
- Operating Margin 25.8%
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 24.9%
- Revenue Growth 5Y 6.5%
- Earnings Surprise avg 4.9%
- Earnings Quality (OCF/NI) 1.28
- Share Dilution -2.3%
- Net Margin Trend 19.4% vs 19.4%
- Piotroski F-Score 6/9
Failed (7)
- P/FCF 37.48
- P/B Ratio 9.19
- CapEx intensity
- Price below Graham Number
- DCF valuation (Overvalued)
- Analyst Consensus 45% Buy
- PEG Ratio 3.67
Unavailable (3)
- Gross Margin NaN%
- Dividend Payout NaN%
- Interest Coverage
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. David S. Congdon | Executive Chairman of the Board | 68 |
| Mr. Kevin M. Freeman | President, CEO & Director | 66 |
| Mr. Adam N. Satterfield CPA | Executive VP, Assistant Secretary & CFO | 50 |
| Mr. Gregory B. Plemmons | Executive VP & COO | 59 |
| Mr. Ross H. Parr | Senior VP of Legal Affairs, General Counsel & Secretary | 53 |
| Mr. Cecil E. Overbey Jr. | Senior Vice President of Strategic Development | 63 |
| Mr. Earl E. Congdon | Chairman Emeritus & Senior Advisor | 94 |
| Mr. Clayton G. Brinker | VP of Accounting & Finance and Principal Accounting Officer | 39 |
| Mr. Jack Lawrence Atkins | Director of Investor Relations | - |
| Sam Faucette | Vice President of Safety & Compliance | - |
Audit Risk
5
Board Risk
9
Compensation Risk
2
Shareholder Rights Risk
9
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for ODFL, sourced from Markets Gazette.
- 6/20/2026NEGATIVEHere's Why Old Dominion Freight Line Stock Slumped This Week
Old Dominion Freight Line (ODFL) stock experienced a significant downturn this week, despite a general recovery observed in the broader freight market. The market's anticipation of this recovery appears to have already been factored into sector stock valuations, leaving little room for further upside. Investors are likely reassessing the stock's premium in light of this 'priced-in' recovery, leading to the price slump. This suggests that while the industry fundamentals are improving, ODFL may have been overvalued based on future expectations.
via Markets Gazette