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Despite its impressive fundamentals, NASDAQ:BLBD remains undervalued.

By Mill Chart

Last update: Apr 8, 2024

BLUE BIRD CORP (NASDAQ:BLBD) has caught the attention of our stock screener as a great value stock. NASDAQ:BLBD excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Analyzing Valuation Metrics

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:

  • Based on the Price/Earnings ratio, BLBD is valued a bit cheaper than 73.85% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.07. BLBD is valued slightly cheaper when compared to this.
  • 80.00% of the companies in the same industry are more expensive than BLBD, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, BLBD is valued a bit cheaper.
  • Based on the Enterprise Value to EBITDA ratio, BLBD is valued a bit cheaper than 71.54% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of BLBD indicates a rather cheap valuation: BLBD is cheaper than 86.15% of the companies listed in the same industry.
  • The 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 50.28% in the coming years. This may justify a more expensive valuation.

Profitability Analysis for NASDAQ:BLBD

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:BLBD has earned a 5 out of 10:

  • BLBD has a Return On Assets of 14.21%. This is amongst the best in the industry. BLBD outperforms 92.31% of its industry peers.
  • BLBD has a Return On Equity of 81.07%. This is amongst the best in the industry. BLBD outperforms 99.23% of its industry peers.
  • BLBD's Return On Invested Capital of 26.72% is amongst the best of the industry. BLBD outperforms 98.46% of its industry peers.
  • In the last couple of years the Operating Margin of BLBD has grown nicely.

What does the Health looks like for NASDAQ:BLBD

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:BLBD, the assigned 5 reflects its health status:

  • BLBD has an Altman-Z score of 5.67. This indicates that BLBD is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.67, BLBD is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 1.51, BLBD belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
  • 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.

Looking at the Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:BLBD was assigned a score of 7 for growth:

  • The Earnings Per Share has grown by an impressive 267.65% over the past year.
  • Looking at the last year, BLBD shows a very strong growth in Revenue. The Revenue has grown by 33.90%.
  • The Earnings Per Share is expected to grow by 50.28% on average over the next years. This is a very strong growth
  • BLBD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.53% yearly.
  • 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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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BLUE BIRD CORP

NASDAQ:BLBD (5/24/2024, 7:16:53 PM)

After market: 54.5508 +0.01 (+0.02%)

54.54

+0.92 (+1.72%)

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