In a market where value is scarce, NASDAQ:BLBD offers a refreshing opportunity with its solid fundamentals.

Last update: Dec 10, 2024

BLUE BIRD CORP (NASDAQ:BLBD) was identified as a decent value stock by our stock screener. NASDAQ:BLBD scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

How do we evaluate the Valuation for 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 8 out of 10:

Based on the Price/Earnings ratio of 11.20, the valuation of BLBD can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BLBD indicates a rather cheap valuation: BLBD is cheaper than 89.23% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BLBD to the average of the S&P500 Index (29.37), we can say BLBD is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.36, the valuation of BLBD can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BLBD indicates a rather cheap valuation: BLBD is cheaper than 93.85% of the companies listed in the same industry.
BLBD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.84.
Based on the Enterprise Value to EBITDA ratio, BLBD is valued cheaper than 86.92% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BLBD indicates a rather cheap valuation: BLBD is cheaper than 86.92% of the companies listed in the same industry.
A more expensive valuation may be justified as BLBD's earnings are expected to grow with 12.63% in the coming years.

Exploring NASDAQ:BLBD's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:BLBD has earned a 5 out of 10:

BLBD has a better Return On Assets (21.26%) than 99.23% of its industry peers.
Looking at the Return On Equity, with a value of 72.48%, BLBD belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
BLBD's Return On Invested Capital of 34.50% is amongst the best of the industry. BLBD outperforms 99.23% of its industry peers.
The Profit Margin of BLBD (7.65%) is better than 62.31% of its industry peers.
In the last couple of years the Operating Margin of BLBD has grown nicely.

A Closer Look at Health for NASDAQ:BLBD

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:BLBD has earned a 6 out of 10:

BLBD has an Altman-Z score of 6.35. This indicates that BLBD is financially healthy and has little risk of bankruptcy at the moment.
BLBD's Altman-Z score of 6.35 is amongst the best of the industry. BLBD outperforms 80.77% of its industry peers.
The Debt to FCF ratio of BLBD is 1.23, which is an excellent value as it means it would take BLBD, only 1.23 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.23, BLBD belongs to the best of the industry, outperforming 88.46% 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.

Looking at the Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:BLBD has received a 4 out of 10:

The Earnings Per Share has grown by an impressive 225.23% over the past year.
The Earnings Per Share has been growing by 16.38% on average over the past years. This is quite good.
BLBD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.63% yearly.
BLBD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.43% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value 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.