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

By Mill Chart

Last update: May 16, 2024

BLUE BIRD CORP (NASDAQ:BLBD) was identified as an affordable growth stock by our stock screener. NASDAQ:BLBD is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Unpacking NASDAQ:BLBD's Growth Rating

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:BLBD boasts a 7 out of 10:

  • BLBD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 471.79%, which is quite impressive.
  • The Revenue has grown by 26.17% in the past year. This is a very strong growth!
  • The Earnings Per Share is expected to grow by 50.28% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, BLBD will show a quite strong growth in Revenue. The Revenue will grow by 11.78% on average per year.
  • 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.

Evaluating Valuation: NASDAQ:BLBD

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:BLBD has achieved a 6 out of 10:

  • 70.00% of the companies in the same industry are more expensive than BLBD, based on the Price/Earnings ratio.
  • BLBD is valuated rather cheaply when we compare the Price/Earnings ratio to 28.91, 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 60.77% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, BLBD is valued cheaper than 83.08% 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 50.28% in the coming years. This may justify a more expensive valuation.

Unpacking NASDAQ:BLBD's Health Rating

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 6 reflects its health status:

  • An Altman-Z score of 6.69 indicates that BLBD is not in any danger for bankruptcy at the moment.
  • BLBD's Altman-Z score of 6.69 is amongst the best of the industry. BLBD outperforms 85.38% of its industry peers.
  • BLBD has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.82, BLBD belongs to the top of the industry, outperforming 90.00% 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.

How do we evaluate the Profitability for NASDAQ:BLBD?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:BLBD, the assigned 5 is a significant indicator of profitability:

  • Looking at the Return On Assets, with a value of 17.57%, BLBD belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
  • BLBD has a better Return On Equity (75.80%) than 99.23% of its industry peers.
  • With an excellent Return On Invested Capital value of 33.82%, BLBD belongs to the best of the industry, outperforming 99.23% of the companies in the same industry.
  • 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.

For an up to date full fundamental analysis you can check the fundamental report of BLBD

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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BLUE BIRD CORP

NASDAQ:BLBD (5/30/2024, 8:40:56 AM)

55.82

+0.6 (+1.09%)

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