Old Dominion Freight Line, Inc. (ODFL) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Old Dominion Freight Line, Inc.

Updated on October 31, 2026 · accounts published on October 28, 2026

A highly profitable, debt-free business going through a soft patch in sales

Old Dominion Freight Line trades at a P/E of 31.0, in line with its ten-year median of 31.2 but 20 % above its sector, with almost no net debt.

• Is Old Dominion Freight Line expensive or cheap? At a P/E of 31.0, it sits on its ten-year median but carries a 20 % premium to the sector median of 25.9 over the last 12 months.
• How is the business doing? Sales fell 5.5 % and EPS 11.9 % over the last 12 months, yet the 27 % operating margin beats its 22 % 2014-2025 average.
• How strong is the balance sheet? Net debt is just $0.10 per share in fiscal 2025, 0.1 % of the share price, and the dividend has risen for 8 straight years.
• What to expect from the next earnings? Next results on February 3, 2027, with analysts expecting EPS of $1.49; the 2026 EPS consensus rose 0.5 % in the last 30 days.
• Does it turn its margin into cash, and at what multiple of the cycle does it trade? Free cash flow was 93 % of fiscal 2025 net income, above the 85 % bar; EV/EBITDA of 18.6× is close to its 7-year average of 19.2×.

Is Old Dominion Freight Line expensive or cheap?

Over the last 12 months Old Dominion Freight Line trades at a P/E of 31.0, almost exactly its ten-year median of 31.2. It has traded at a lower P/E only 49 % of the time over the decade, so against its own history the multiple is neutral, inside a range that ran from 17.9 to 63.2. The sector is the tougher yardstick: its median P/E is 25.9, which puts the stock at a 20 % premium. The share price is up 26 % over 12 months yet still 31 % below its 52-week high of $248.73, so the market has already taken some of the shine off.

How is the business doing?

The last 12 months have been a contraction, with revenue down 5.5 % and EPS down 11.9 % year on year. Profitability has held up far better than the top line. The operating margin of 27 % over the last 12 months is above both fiscal 2025 (25 %) and the 2014-2025 average of 22 %, and the net margin stands at 20 %. ROIC of 22 % over the last 12 months is 13 points above the sector median of 9.1 %, and it has stayed above 10 % in each of the last ten fiscal years. That is the profile of a business whose returns survive a weaker year intact.

How strong is the balance sheet?

Old Dominion Freight Line runs with practically no leverage: debt to equity is 0.00 over the last 12 months and net debt to EBITDA was 0.0× in fiscal 2025, against a sector ceiling of 3.0×. The current ratio of 2.04 covers short-term obligations twice over, and an Altman Z of 18.3 sits far inside the safe zone that starts at 2.99. Shareholders get a modest 0.7 % dividend yield, but it is well covered: the payout was 23 % of fiscal 2025 earnings, after eight consecutive years of increases. The balance sheet is not where the risk lies.

What to expect from the next earnings?

On October 28, 2026 Old Dominion Freight Line reported EPS of $1.65 against $1.61 expected, a 2.5 % beat and its seventh in the last eight quarters. For the quarter due on February 3, 2027 analysts expect $1.49, below that latest figure. Estimates are edging up rather than down: the 2026 EPS consensus rose 0.5 % in the last 30 days to $5.88 across 16 analysts, and the revenue consensus rose 0.9 %. Of the 36 analysts covering the stock, 13 say buy, 19 hold and 4 sell, a lukewarm split that matches a multiple already in line with its history.

Does it turn its margin into cash, and at what multiple of the cycle does it trade?

Industrials are semi-cyclical, so a single year's earnings can flatter or punish a multiple. That is why the sector is judged on operating margin, cash conversion and multiples measured against a full cycle. Old Dominion Freight Line converted 93 % of fiscal 2025 net income into free cash flow, above the 85 % healthy mark but close to it, while capex took 7.6 % of revenue, inside the 4 % to 8 % band. Over the last 12 months EV/EBITDA of 18.6× compares with a 7-year average of 19.2×, and the P/E of 31.0 with a 10-year average of 32.6: both within 10 % of their norms, so the cycle-adjusted reading is neutral.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.