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NASDAQ:BLBD stands out as a growth opportunity that won't break the bank.

By Mill Chart

Last update: Feb 13, 2024

Our stock screening tool has pinpointed BLUE BIRD CORP (NASDAQ:BLBD) as a growth stock that isn't overvalued. NASDAQ:BLBD is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Deciphering NASDAQ:BLBD's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:BLBD has achieved a 7 out of 10:

  • The Earnings Per Share has grown by an impressive 267.65% over the past year.
  • BLBD shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.90%.
  • BLBD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.70% yearly.
  • Based on estimates for the next years, BLBD will show a quite strong growth in Revenue. The Revenue will grow by 15.18% on average per year.
  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Valuation Examination for NASDAQ:BLBD

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:BLBD has received a 7 out of 10:

  • 78.63% of the companies in the same industry are more expensive than BLBD, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.01, BLBD is valued a bit cheaper.
  • BLBD's Price/Forward Earnings ratio is rather cheap when compared to the industry. BLBD is cheaper than 81.68% of the companies in the same industry.
  • BLBD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.61, which is the current average of the S&P500 Index.
  • Based on the Enterprise Value to EBITDA ratio, BLBD is valued a bit cheaper than 75.57% of the companies in the same industry.
  • BLBD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BLBD is cheaper than 87.79% of the companies in the same industry.
  • BLBD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • BLBD's earnings are expected to grow with 47.70% in the coming years. This may justify a more expensive valuation.

Analyzing Health Metrics

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:BLBD has achieved a 5 out of 10:

  • An Altman-Z score of 5.32 indicates that BLBD is not in any danger for bankruptcy at the moment.
  • BLBD has a better Altman-Z score (5.32) than 80.92% of its industry peers.
  • The Debt to FCF ratio of BLBD is 1.51, which is an excellent value as it means it would take BLBD, only 1.51 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of BLBD (1.51) is better than 83.97% of its industry peers.
  • Although BLBD does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Evaluating Profitability: NASDAQ:BLBD

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:BLBD has achieved a 5:

  • With an excellent Return On Assets value of 14.21%, BLBD belongs to the best of the industry, outperforming 93.89% of the companies in the same industry.
  • BLBD has a better Return On Equity (81.07%) than 99.24% of its industry peers.
  • The Return On Invested Capital of BLBD (26.72%) is better than 99.24% of its industry peers.
  • In the last couple of years the Operating Margin of BLBD has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of BLBD contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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