August 24, 2025 a 03:31 am
ODFL: Dividend Analysis - Old Dominion Freight Line, Inc.
Old Dominion Freight Line, Inc. presents a modest dividend profile with a growth-oriented strategy. With a 9-year dividend history and a current yield of 0.69%, the company's conservative payout supports steady shareholder returns. The robust fundamentals and sustainable payout ratios suggest stable future performance, though the dividend yield is relatively low compared to peers.
📊 Overview
Old Dominion Freight Line, Inc. operates within the trucking industry, characterized by steady but moderate dividend growth. The sector’s dynamics favor companies that can manage logistical efficiencies and cost control.
| Metric | Value |
|---|---|
| Sector | Trucking |
| Dividend Yield | 0.69% |
| Current Dividend Per Share | 1.04 USD |
| Dividend History | 9 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The dividend history of Old Dominion Freight Line, Inc. highlights a consistent approach towards rewarding shareholders. The company’s sustained payouts over the past nine years suggest resilience and a commitment to shareholder value. Regular dividend distributions can signify financial stability and management's confidence in future cash flows.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.84 |
| 2024 | 1.04 |
| 2023 | 0.80 |
| 2022 | 0.60 |
| 2021 | 0.40 |
📈 Dividend Growth
Examining the dividend growth over both short and long terms can provide insights into strategic management priorities. Old Dominion Freight Line's growth rate indicates a focus on improving shareholder returns gradually.
| Time | Growth |
|---|---|
| 3 years | 37.51% |
| 5 years | 35.62% |
The average dividend growth is 35.62% over 5 years. This shows moderate but steady dividend growth.
🌀 Payout Ratio
Payout ratios are crucial indicators of a company's ability to sustain dividend payments. A lower payout ratio suggests a greater margin of safety for continued payments during downturns. Old Dominion's payout ratios demonstrate a conservative approach, securing future dividend stability.
| Key Figure | Ratio |
|---|---|
| EPS-based | 20.12% |
| Free Cash Flow-based | 26.23% |
The EPS-based payout ratio of 20.12% and the FCF-based ratio of 26.23% reflect a well-balanced approach, ensuring ample room for stock buybacks or reinvestment.
💸 Cashflow & Capital Efficiency
Efficient cash flow management and capital allocation are fundamental to sustaining dividend payments and fueling growth. A review of free cash flow yields and CAPEX to operating cash flow ratios are indicators of financial efficiency.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 2.85% | 1.83% | 2.34% |
| Earnings Yield | 4.29% | 2.79% | 3.12% |
| CAPEX/Operating Cash Flow | 46.79% | 48.26% | 46.49% |
| Stock-based Compensation/Revenue | 0.25% | 0.18% | 0.19% |
| Free Cash Flow/Operating Cash Flow Ratio | 53.51% | 51.73% | 53.51% |
The data reflects strong cash flow stability, supporting dividend payments and further investments, enhancing future capital efficiency.
📋 Balance Sheet & Leverage Analysis
A balance sheet's strength and leverage indicate financial stability, essential for long-term sustainability of dividends. Metrics like debt ratios and liquidity measures are integral for assessing risk profiles.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 2.74% | 1.88% | 1.41% |
| Debt-to-Assets | 2.06% | 1.45% | 1.09% |
| Debt-to-Capital | 2.66% | 1.84% | 1.39% |
| Net Debt to EBITDA | -4.07% | -17.94% | -2.56% |
| Current Ratio | 1.76 | 2.10 | 1.33 |
| Quick Ratio | 1.76 | 2.10 | 1.33 |
| Financial Leverage | 1.32 | 1.29 | 1.29 |
The robust balance sheet and low leverage ratio illustrate a strong defensive position against financial exposures, allowing focus on operational growth.
🌟 Fundamental Strength & Profitability
Profitability ratios offer a glance into the efficiency of core operations, crucial for sustaining dividends. Evaluating margins along with returns on equity and assets is imperative.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 37.70% | 29.11% | 27.94% |
| Return on Assets | 28.46% | 22.49% | 21.60% |
| Gross Profit Margin | 36.04% | 35.32% | 34.79% |
| EBIT Margin | 29.40% | 28.10% | 26.79% |
| EBITDA Margin | 33.85% | 33.63% | 32.71% |
| R&D to Revenue | 0% | 0% | 0% |
Consistent profitability as demonstrated by high returns and solid margins signals effective business strategies and superior competitive positioning.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 36/40
⚠️ Rating
Overall, Old Dominion Freight Line, Inc. demonstrates robust fundamental strength and consistency in its dividend policy. With a total score of 36 out of 40, the company exhibits commendable financial discipline, payout prudence, and growth potential. It is recommended for investors seeking stable dividend yields coupled with potential capital appreciation.