NASDAQ:BLBD is not too expensive for the growth it is showing.

Last update: Mar 5, 2024

BLUE BIRD CORP (NASDAQ:BLBD) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:BLBD is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Analyzing Growth Metrics

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.
The Revenue has grown by 33.90% in the past year. This is a very strong growth!
The Earnings Per Share is expected to grow by 47.70% 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 14.97% 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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Assessment of NASDAQ:BLBD

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:BLBD, the assigned 7 reflects its valuation:

Based on the Price/Earnings ratio, BLBD is valued cheaper than 80.15% of the companies in the same industry.
BLBD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.93.
BLBD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BLBD is cheaper than 76.34% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BLBD to the average of the S&P500 Index (21.91), we can say BLBD is valued slightly cheaper.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BLBD indicates a somewhat cheap valuation: BLBD is cheaper than 76.34% of the companies listed in the same industry.
86.26% of the companies in the same industry are more expensive than BLBD, based on the Price/Free Cash Flow ratio.
BLBD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as BLBD's earnings are expected to grow with 47.70% in the coming years.

Health Analysis for NASDAQ:BLBD

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:

BLBD has an Altman-Z score of 5.47. This indicates that BLBD is financially healthy and has little risk of bankruptcy at the moment.
BLBD's Altman-Z score of 5.47 is fine compared to the rest of the industry. BLBD outperforms 79.39% of its industry peers.
BLBD has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.51, BLBD belongs to the best of the industry, outperforming 84.73% 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.

Assessing Profitability for 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:

BLBD has a better Return On Assets (14.21%) than 93.89% of its industry peers.
The Return On Equity of BLBD (81.07%) is better than 99.24% of its industry peers.
BLBD has a Return On Invested Capital of 26.72%. This is amongst the best in the industry. BLBD outperforms 98.47% of its industry peers.
BLBD's Operating Margin has improved in the last couple of years.

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