Old Dominion Profit Margin vs. Return On Asset

ODFL Stock  USD 211.03  7.30  3.34%   
Considering Old Dominion's profitability and operating efficiency indicators, Old Dominion Freight is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in January. Profitability indicators assess Old Dominion's ability to earn profits and add value for shareholders.

Old Dominion Net Profit Margin

0.21

At this time, Old Dominion's Price Sales Ratio is quite stable compared to the past year. At this time, Old Dominion's Net Income Applicable To Common Shares is quite stable compared to the past year. Net Income From Continuing Ops is expected to rise to about 1.3 B this year, although the value of Income Quality will most likely fall to 1.20.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.620.3532
Way Up
Pretty Stable
Net Profit Margin0.220.2113
Sufficiently Up
Slightly volatile
Operating Profit Margin0.290.2797
Sufficiently Up
Slightly volatile
Pretax Profit Margin0.290.2809
Sufficiently Up
Slightly volatile
Return On Assets0.240.2249
Notably Up
Slightly volatile
Return On Equity0.310.2911
Notably Up
Slightly volatile
For Old Dominion profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Old Dominion to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Old Dominion Freight utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Old Dominion's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Old Dominion Freight over time as well as its relative position and ranking within its peers.
  

Old Dominion's Revenue Breakdown by Earning Segment

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Is Cargo Ground Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Old Dominion. If investors know Old will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Old Dominion listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.07)
Dividend Share
0.98
Earnings Share
5.71
Revenue Per Share
27.363
Quarterly Revenue Growth
(0.03)
The market value of Old Dominion Freight is measured differently than its book value, which is the value of Old that is recorded on the company's balance sheet. Investors also form their own opinion of Old Dominion's value that differs from its market value or its book value, called intrinsic value, which is Old Dominion's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Old Dominion's market value can be influenced by many factors that don't directly affect Old Dominion's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Old Dominion's value and its price as these two are different measures arrived at by different means. Investors typically determine if Old Dominion is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Old Dominion's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Old Dominion Freight Return On Asset vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Old Dominion's current stock value. Our valuation model uses many indicators to compare Old Dominion value to that of its competitors to determine the firm's financial worth.
Old Dominion Freight is considered to be number one stock in profit margin category among its peers. It also is considered to be number one stock in return on asset category among its peers reporting about  0.90  of Return On Asset per Profit Margin. The ratio of Profit Margin to Return On Asset for Old Dominion Freight is roughly  1.11 . At this time, Old Dominion's Net Profit Margin is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Old Dominion by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Old Return On Asset vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Old Dominion

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.21 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Old Dominion

Return On Asset

 = 

Net Income

Total Assets

 = 
0.19
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Old Return On Asset Comparison

Old Dominion is currently under evaluation in return on asset category among its peers.

Old Dominion Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Old Dominion, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Old Dominion will eventually generate negative long term returns. The profitability progress is the general direction of Old Dominion's change in net profit over the period of time. It can combine multiple indicators of Old Dominion, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income1.6 B1.7 B
Net Income1.2 B1.3 B
Income Tax Expense408.3 M428.7 M
Income Before Tax1.6 B1.7 B
Total Other Income Expense Net7.1 M7.9 M
Net Income Applicable To Common Shares1.6 B1.7 B
Net Income From Continuing Ops1.2 B1.3 B
Non Operating Income Net Other2.6 M2.8 M
Interest Income12.8 M13.4 M
Net Interest Income12.3 M13 M
Change To Netincome85.6 M89.9 M
Net Income Per Share 5.66  5.95 
Income Quality 1.27  1.20 
Net Income Per E B T 0.75  0.50 

Old Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Old Dominion. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Old Dominion position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Old Dominion's important profitability drivers and their relationship over time.

Use Old Dominion in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Old Dominion position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Old Dominion will appreciate offsetting losses from the drop in the long position's value.

Old Dominion Pair Trading

Old Dominion Freight Pair Trading Analysis

The ability to find closely correlated positions to Old Dominion could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Old Dominion when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Old Dominion - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Old Dominion Freight to buy it.
The correlation of Old Dominion is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Old Dominion moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Old Dominion Freight moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Old Dominion can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Old Dominion position

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When determining whether Old Dominion Freight is a strong investment it is important to analyze Old Dominion's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Old Dominion's future performance. For an informed investment choice regarding Old Stock, refer to the following important reports:
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You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
To fully project Old Dominion's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Old Dominion Freight at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Old Dominion's income statement, its balance sheet, and the statement of cash flows.
Potential Old Dominion investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Old Dominion investors may work on each financial statement separately, they are all related. The changes in Old Dominion's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Old Dominion's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.