NASDAQ:BLBD, a growth stock which is not overvalued.

Last update: Mar 26, 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.

Growth Examination for NASDAQ:BLBD

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:BLBD scores a 7 out of 10:

The Earnings Per Share has grown by an impressive 267.65% over the past year.
BLBD shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.90%.
Based on estimates for the next years, BLBD will show a very strong growth in Earnings Per Share. The EPS will grow by 50.28% on average per year.
Based on estimates for the next years, BLBD will show a quite strong growth in Revenue. The Revenue will grow by 12.53% 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.

Deciphering NASDAQ:BLBD's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:BLBD has earned a 7 for valuation:

76.34% of the companies in the same industry are more expensive than BLBD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.09, BLBD is valued a bit cheaper.
Based on the Price/Forward Earnings ratio, BLBD is valued cheaply inside the industry as 83.97% of the companies are valued more expensively.
BLBD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.45.
72.52% of the companies in the same industry are more expensive than BLBD, based on the Enterprise Value to EBITDA ratio.
BLBD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BLBD is cheaper than 85.50% 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.
A more expensive valuation may be justified as BLBD's earnings are expected to grow with 50.28% in the coming years.

A Closer Look at Health for NASDAQ:BLBD

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

An Altman-Z score of 5.59 indicates that BLBD is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.59, BLBD is doing good in the industry, outperforming 79.39% of the companies in the same industry.
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.
BLBD's Debt to FCF ratio of 1.51 is amongst the best of the industry. BLBD outperforms 83.97% of its industry peers.
Even though the debt/equity ratio score it not favorable for BLBD, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Profitability Insights: NASDAQ:BLBD

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:BLBD, the assigned 5 is noteworthy for profitability:

BLBD's Return On Assets of 14.21% is amongst the best of the industry. BLBD outperforms 93.13% of its industry peers.
BLBD has a better Return On Equity (81.07%) than 99.24% of its industry peers.
BLBD has a better Return On Invested Capital (26.72%) than 98.47% 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.

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

Disclaimer

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.