Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Old Dominion Freight Line Inc., FCFE calculation
US$ in thousands
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).
A comprehensive examination of the cash flow metrics from 2018 to 2022 reveals a consistent upward trajectory in liquidity generation. Both operating cash flow and free cash flow to equity demonstrated significant growth over the five-year period, indicating a strengthening financial position and an increased capacity to return value to shareholders.
- Net Cash Provided by Operating Activities
- Operating cash flow grew from 900.1 million USD in 2018 to 1.69 billion USD in 2022. Although a marginal contraction was observed in 2020, the subsequent acceleration in 2021 and 2022 was substantial, with the 2022 figure representing an approximate 87.9% increase over the 2018 baseline.
- Free Cash Flow to Equity (FCFE)
- FCFE exhibited a strong overall growth pattern, rising from 268.8 million USD in 2018 to 938.5 million USD in 2022. The most rapid expansion occurred between 2018 and 2020. A moderate decline was noted in 2021, where FCFE decreased to 682.1 million USD, before rebounding sharply in 2022 to reach its period peak.
- Cash Flow Conversion and Allocation Trends
- The relationship between operating cash flow and FCFE suggests shifting capital allocation priorities. In 2020, FCFE reached its highest proportion relative to operating cash flow, suggesting a period of lower capital expenditures or debt repayment. Conversely, the divergence observed in 2021—characterized by rising operating cash flow alongside declining FCFE—indicates a strategic increase in capital investments or debt settlements during that fiscal year.
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Price to FCFE Ratio, Current
Old Dominion Freight Line Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 109,268,081 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 938,530) |
| FCFE per share | 8.59 |
| Current share price (P) | 407.11 |
| Valuation Ratio | |
| P/FCFE | 47.40 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| FedEx Corp. | 8.57 |
| Uber Technologies Inc. | 13.44 |
| Union Pacific Corp. | 30.22 |
| United Airlines Holdings Inc. | — |
| United Parcel Service Inc. | 14.20 |
| P/FCFE, Sector | |
| Transportation | 30.18 |
| P/FCFE, Industry | |
| Industrials | 38.94 |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Old Dominion Freight Line Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 110,026,430 | 114,863,803 | 116,937,111 | 119,545,928 | 121,720,484 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 938,530) | 682,077) | 766,556) | 510,249) | 268,807) | |
| FCFE per share3 | 8.53 | 5.94 | 6.56 | 4.27 | 2.21 | |
| Share price1, 4 | 342.01 | 282.48 | 217.31 | 137.52 | 100.31 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 40.09 | 47.57 | 33.15 | 32.22 | 45.42 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| FedEx Corp. | 19.48 | 36.75 | — | — | — | |
| Uber Technologies Inc. | 333.68 | 139.66 | — | — | — | |
| Union Pacific Corp. | 13.19 | 17.16 | — | — | — | |
| United Airlines Holdings Inc. | — | 2.58 | — | — | — | |
| United Parcel Service Inc. | 21.80 | 22.62 | — | — | — | |
| P/FCFE, Sector | ||||||
| Transportation | 23.54 | 19.46 | — | — | — | |
| P/FCFE, Industry | ||||||
| Industrials | 25.07 | — | — | — | — | |
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).
1 Data adjusted for splits and stock dividends.
3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 938,530,000 ÷ 110,026,430 = 8.53
4 Closing price as at the filing date of Old Dominion Freight Line Inc. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 342.01 ÷ 8.53 = 40.09
6 Click competitor name to see calculations.
Between 2018 and 2022, a strong upward trajectory is observed in both the share price and the Free Cash Flow to Equity (FCFE) per share. The share price increased consistently each year, rising from 100.31 US$ in 2018 to 342.01 US$ by the end of 2022. Concurrently, FCFE per share grew from 2.21 US$ to 8.53 US$, representing a significant expansion in the cash available to shareholders.
- Price to FCFE Ratio Volatility
- The P/FCFE ratio exhibited fluctuations throughout the analyzed period, starting at 45.42 in 2018 and ending at 40.09 in 2022. A notable compression occurred between 2018 and 2019, where the ratio dropped to 32.22, indicating that FCFE growth outperformed the increase in share price during that interval.
- 2021 Valuation Peak
- A peak in the P/FCFE ratio was recorded in 2021 at 47.57. This spike was driven by a divergence in trends: the share price continued its ascent to 282.48 US$, while FCFE per share experienced a slight contraction from 6.56 US$ in 2020 to 5.94 US$ in 2021.
- 2022 Ratio Normalization
- In 2022, the ratio moderated to 40.09. Although the share price reached its period high of 342.01 US$, the ratio decreased relative to the previous year due to a substantial increase in FCFE per share, which reached 8.53 US$.
Overall, while the valuation multiple remained elevated, the long-term growth in FCFE per share has largely supported the substantial increase in the share price over the five-year period.
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