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Looking for growth without the hefty price tag? Consider NASDAQ:BLBD.

By Mill Chart

Last update: Apr 16, 2024

Consider BLUE BIRD CORP (NASDAQ:BLBD) as an affordable growth stock, identified by our stock screening tool. NASDAQ:BLBD is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

A Closer Look at Growth for NASDAQ:BLBD

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:BLBD has earned a 7 for growth:

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

A Closer Look at Valuation 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:

  • 73.64% of the companies in the same industry are more expensive than BLBD, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.05. BLBD is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio, BLBD is valued cheaper than 81.40% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.53. BLBD is valued slightly cheaper when compared to this.
  • BLBD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BLBD is cheaper than 72.87% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, BLBD is valued cheaper than 86.05% of the companies 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.

Deciphering NASDAQ:BLBD's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:BLBD scores a 5 out of 10:

  • An Altman-Z score of 5.57 indicates that BLBD is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.57, BLBD is in the better half of the industry, outperforming 79.84% 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.
  • With an excellent Debt to FCF ratio value of 1.51, BLBD belongs to the best of the industry, outperforming 83.72% 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.

Evaluating Profitability: NASDAQ:BLBD

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:BLBD was assigned a score of 5 for profitability:

  • BLBD's Return On Assets of 14.21% is amongst the best of the industry. BLBD outperforms 92.25% of its industry peers.
  • BLBD's Return On Equity of 81.07% is amongst the best of the industry. BLBD outperforms 99.22% of its industry peers.
  • BLBD's Return On Invested Capital of 26.72% is amongst the best of the industry. BLBD outperforms 98.45% of its industry peers.
  • In the last couple of years the Operating Margin of BLBD has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of BLBD for a complete fundamental analysis.


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.