BLUE BIRD CORP (NASDAQ:BLBD) – A GARP Candidate Worth Considering

BLUE BIRD CORP (NASDAQ:BLBD) emerged from our Peter Lynch-inspired screen as a potential candidate for long-term investors seeking growth at a reasonable price. The company, which designs and manufactures school buses, meets several key criteria for sustainable growth and sound financial health.

Why BLBD Fits the GARP Approach

• Earnings Growth: BLBD has delivered a 5-year average EPS growth of 16.38%, aligning with Lynch’s preference for steady but sustainable expansion.
• Reasonable Valuation: With a PEG ratio of 0.67 (below Lynch’s threshold of 1), the stock appears attractively priced relative to its growth.
• Strong Profitability: The company’s Return on Equity (ROE) stands at 56.80%, well above the 15% minimum Lynch favored.
• Healthy Balance Sheet: A Debt/Equity ratio of 0.46 indicates prudent leverage, while a Current Ratio of 1.45 suggests sufficient liquidity.

Fundamental Highlights

BLBD’s financial health and profitability metrics are solid, though not without nuances. The company scores a 5 out of 10 in our fundamental analysis, with strengths in ROE and ROIC but weaker gross margins. Valuation metrics, including a P/E of 11.00, suggest the stock is priced below many industry peers. For a deeper look, review the full fundamental report.

Our Peter Lynch Strategy screener lists more stocks that fit this strategy and is updated regularly.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.