Price to Operating Profit (P/OP)
since 2005
Calculation
Old Dominion Freight Line Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2023 | 20.44 | = | 342.01 | ÷ | 16.73 | 16.73 | = | 1,840,632 | ÷ | 110,026,430 | |
| Feb 23, 2022 | 23.32 | = | 282.48 | ÷ | 12.12 | 12.12 | = | 1,391,602 | ÷ | 114,863,803 | |
| Feb 24, 2021 | 28.02 | = | 217.31 | ÷ | 7.76 | 7.76 | = | 906,882 | ÷ | 116,937,111 | |
| Feb 26, 2020 | 20.08 | = | 137.52 | ÷ | 6.85 | 6.85 | = | 818,706 | ÷ | 119,545,928 | |
| Feb 27, 2019 | 14.94 | = | 100.31 | ÷ | 6.71 | 6.71 | = | 817,051 | ÷ | 121,720,484 | |
| Feb 27, 2018 | 19.86 | = | 92.56 | ÷ | 4.66 | 4.66 | = | 575,886 | ÷ | 123,561,677 | |
| Feb 27, 2017 | 15.76 | = | 61.63 | ÷ | 3.91 | 3.91 | = | 483,835 | ÷ | 123,699,354 | |
| Feb 29, 2016 | 10.86 | = | 43.04 | ÷ | 3.96 | 3.96 | = | 498,240 | ÷ | 125,727,914 | |
| Feb 26, 2015 | 15.26 | = | 52.24 | ÷ | 3.42 | 3.42 | = | 441,307 | ÷ | 128,888,381 | |
| Feb 28, 2014 | 13.55 | = | 35.49 | ÷ | 2.62 | 2.62 | = | 338,438 | ÷ | 129,247,376 | |
| Feb 28, 2013 | 10.87 | = | 23.99 | ÷ | 2.21 | 2.21 | = | 285,254 | ÷ | 129,247,376 | |
| Feb 29, 2012 | 10.68 | = | 19.34 | ÷ | 1.81 | 1.81 | = | 234,072 | ÷ | 129,247,479 | |
| Feb 28, 2011 | 12.49 | = | 13.67 | ÷ | 1.09 | 1.09 | = | 137,739 | ÷ | 125,835,627 | |
| Mar 1, 2010 | 16.12 | = | 9.02 | ÷ | 0.56 | 0.56 | = | 70,391 | ÷ | 125,835,780 | |
| Mar 2, 2009 | 5.84 | = | 5.99 | ÷ | 1.03 | 1.03 | = | 129,070 | ÷ | 125,835,780 | |
| Feb 29, 2008 | 7.82 | = | 8.07 | ÷ | 1.03 | 1.03 | = | 129,937 | ÷ | 125,835,780 | |
| Mar 1, 2007 | 8.80 | = | 9.13 | ÷ | 1.04 | 1.04 | = | 130,485 | ÷ | 125,835,780 | |
| Mar 16, 2006 | 9.99 | = | 7.75 | ÷ | 0.78 | 0.78 | = | 97,585 | ÷ | 125,835,780 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Old Dominion Freight Line Inc. Annual Report.
- Share Price Trend
- The share price exhibits a general upward trend from 2006 to 2023. Starting at $7.75 in 2006, it experienced some volatility, including a decline to $5.99 in 2009, followed by a strong increase thereafter. Notably, from 2013 onwards, the share price accelerated significantly, reaching $342.01 by 2023. This suggests increased investor confidence or improved market valuation over this period.
- Operating Profit Per Share (OPPS) Trend
- Operating profit per share shows moderate fluctuations initially, with values around $1.00 between 2006 and 2009. A dip to $0.56 in 2010 is observed, followed by a steady and consistent increase from 2011 onward. By 2023, OPPS has grown substantially to $16.73, indicating enhanced profitability and operational efficiency over the longer term.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio shows a declining trend in the early years, reaching a low of 5.84 in 2009, indicating the share price was relatively low compared to operating profit per share during that period. However, from 2010 onwards, this ratio generally increased, with fluctuations. It peaked at 28.02 in 2021, implying the market price was considerably higher relative to operating profits at that time. Subsequent years show a modest decrease but remain elevated, suggesting a premium valuation persists despite rising operating profits.
- Overall Analysis
- The data reflects strong growth in both share price and operating profit per share over the 17-year period. While the share price growth outpaces profit growth, leading to higher valuation multiples, the company’s increasing profitability supports this premium valuation. Early volatility and the dip around 2009-2010 coincide with broader market challenges, but resilience is demonstrated by robust recovery and continued growth thereafter. The elevated P/OP ratios in recent years indicate market expectations of future growth or favorable business prospects.
Comparison to Competitors
Old Dominion Freight Line Inc., P/OP, long-term trends, comparison to competitors
| Old Dominion Freight Line Inc. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|---|
| Feb 22, 2023 | 20.44 | 9.07 | — | 12.68 | 6.86 | 11.70 |
| Feb 23, 2022 | 23.32 | 13.46 | — | 16.53 | — | 14.20 |
| Feb 24, 2021 | 28.02 | 17.79 | — | 17.46 | — | 18.23 |
| Feb 26, 2020 | 20.08 | 9.92 | — | 14.83 | 4.07 | 11.72 |
| Feb 27, 2019 | 14.94 | 12.57 | — | 13.73 | 7.11 | 13.69 |
| Feb 27, 2018 | 19.86 | 11.48 | — | 12.30 | 5.43 | 11.98 |
| Feb 27, 2017 | 15.76 | 13.87 | — | 12.14 | 5.41 | 17.14 |
| Feb 29, 2016 | 10.86 | 25.90 | — | 7.89 | 3.61 | 11.27 |
| Feb 26, 2015 | 15.26 | 12.51 | — | 12.26 | 11.01 | 18.48 |
| Feb 28, 2014 | 13.55 | 12.87 | — | 10.81 | 13.59 | 12.57 |
| Feb 28, 2013 | 10.87 | 9.13 | — | 9.26 | 224.23 | 58.68 |
| Feb 29, 2012 | 10.68 | 12.54 | — | 9.74 | 3.82 | 12.11 |
| Feb 28, 2011 | 12.49 | 12.16 | — | 9.29 | 8.23 | 12.40 |
| Mar 1, 2010 | 16.12 | 23.98 | — | 9.25 | — | 15.34 |
| Mar 2, 2009 | 5.84 | 11.54 | — | 6.09 | — | 7.62 |
| Feb 29, 2008 | 7.82 | 11.05 | — | 9.75 | 3.48 | 125.70 |
| Mar 1, 2007 | 8.80 | 11.08 | — | 9.75 | 9.70 | 11.27 |
| Mar 16, 2006 | 9.99 | 10.21 | — | 13.19 | — | 13.88 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).