Why The 43% Return On Capital At Old Dominion Freight Line (NASDAQ:ODFL) Should Have Your Attention
Nov 29
U.S. Transportation Industry Analysis
UpdatedDec 01, 2022
DataAggregated Company Financials
Companies52
- 7D2.6%
- 3M2.1%
- 1Y-20.2%
- YTD-21.7%
In the last week, the Transportation industry is up 2.6%, with Union Pacific up 2.3%. In the past year, the industry is down 20%. Earnings are forecast to grow by 15% annually.
Industry Valuation and Performance
Has the U.S. Transportation Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 01 Dec 2022 | US$488.3b | US$220.5b | US$3.7b | 10.5x | 130.8x | 2.2x |
| Sat, 29 Oct 2022 | US$440.3b | US$215.3b | US$2.2b | 8.7x | 198.1x | 2x |
| Mon, 26 Sep 2022 | US$427.0b | US$206.0b | US$1.0b | 8.7x | 424x | 2.1x |
| Wed, 24 Aug 2022 | US$493.6b | US$206.8b | US$154.5m | 9.8x | 3195x | 2.4x |
| Fri, 22 Jul 2022 | US$464.0b | US$198.2b | US$2.7b | 10.2x | 174x | 2.3x |
| Sun, 19 Jun 2022 | US$424.9b | US$195.3b | US$2.5b | 9.1x | 167.6x | 2.2x |
| Tue, 17 May 2022 | US$467.8b | US$194.8b | US$2.2b | 9.7x | 208.2x | 2.4x |
| Thu, 14 Apr 2022 | US$514.6b | US$185.6b | US$4.2b | 13.1x | 123.2x | 2.8x |
| Sat, 12 Mar 2022 | US$549.9b | US$187.9b | US$7.7b | 14.4x | 71.8x | 2.9x |
| Mon, 07 Feb 2022 | US$563.7b | US$188.8b | US$5.6b | 14.4x | 100x | 3x |
| Wed, 05 Jan 2022 | US$631.4b | US$183.8b | US$4.5b | 18.4x | 139.3x | 3.4x |
| Fri, 03 Dec 2021 | US$597.8b | US$181.2b | US$12.4b | 17.2x | 48.1x | 3.3x |
| Sun, 31 Oct 2021 | US$642.6b | US$177.6b | US$13.4b | 18.6x | 47.8x | 3.6x |
| Tue, 28 Sep 2021 | US$587.1b | US$171.9b | US$11.5b | 18x | 50.8x | 3.4x |
| Thu, 26 Aug 2021 | US$590.7b | US$174.4b | US$11.2b | 18.6x | 52.6x | 3.4x |
| Fri, 02 Jul 2021 | US$643.6b | US$174.2b | US$11.2b | 18.8x | 57.4x | 3.7x |
| Mon, 05 Apr 2021 | US$544.9b | US$131.7b | US$8.5b | 27.1x | 64.1x | 4.1x |
| Thu, 07 Jan 2021 | US$484.8b | US$130.2b | US$5.1b | 25.1x | 95.2x | 3.7x |
| Wed, 30 Sep 2020 | US$417.0b | US$129.3b | US$4.4b | 24.9x | 93.8x | 3.2x |
| Sat, 04 Jul 2020 | US$366.1b | US$131.7b | US$4.1b | 23.5x | 89.5x | 2.8x |
| Tue, 07 Apr 2020 | US$306.3b | US$139.1b | US$2.1b | 16.2x | 143.4x | 2.2x |
| Fri, 10 Jan 2020 | US$381.4b | US$139.4b | US$3.7b | 20.4x | 102.7x | 2.7x |
Price to Earnings Ratio
71.6x
Current Industry PE
- Investors are pessimistic on the American Transportation industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 131x which is lower than its 3-year average PE of 171x.
- The 3-year average PS ratio of 3.1x is higher than the industry's current PS ratio of 2.2x.
Past Earnings Growth
- The earnings for companies in the Transportation industry have declined 11% per year over the last three years.
- Meanwhile revenues for these companies have grown 13% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the U.S. Industrials industry?
| US Market | 1.54% | |
| Industrials | 0.80% | |
| Transportation | 2.64% | |
| Trucking | 3.23% | |
| Railroads | 2.17% | |
Industry PE
- Investors are most optimistic about the Railroads industry even though it's trading below its 3-year average PE ratio of 22.8x.
- Analysts are expecting annual earnings growth of 3.0%, which is lower than the prior year's growth of 13.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Trucking industry, expecting annual earnings growth of 33% over the next 5 years.
- However this is lower than its past earnings growth rate of 64% per year.
- In contrast, the Railroads industry is expected to see its earnings grow by 3.0% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| UNP Union Pacific | US$217.43 | 2.3% +US$3.2b | -6.8% | PE19.8x | |
| YMM Full Truck Alliance | US$8.53 | 22.7% +US$1.8b | -28.0% | PS10.7x | |
| CSX CSX | US$32.69 | 1.9% +US$1.3b | -5.1% | PE17.1x | |
| NSC Norfolk Southern | US$256.50 | 2.1% +US$1.3b | -4.7% | PE19.3x | |
| UHAL AMERCO | US$63.30 | 7.7% +US$890.2m | -9.7% | PE11.8x |
