NASDAQ:BLBD is an undervalued gem with solid fundamentals.

Uncover the potential of BLUE BIRD CORP (NASDAQ:BLBD) as our stock screener's choice for an undervalued stock. NASDAQ:BLBD maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Assessing Valuation Metrics for NASDAQ:BLBD

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 8 for valuation:

• With a Price/Earnings ratio of 11.10, the valuation of BLBD can be described as very reasonable.
• BLBD's Price/Earnings ratio is rather cheap when compared to the industry. BLBD is cheaper than 88.19% of the companies in the same industry.
• BLBD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.17.
• Based on the Price/Forward Earnings ratio of 9.69, the valuation of BLBD can be described as reasonable.
• Based on the Price/Forward Earnings ratio, BLBD is valued cheaply inside the industry as 93.70% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of BLBD to the average of the S&P500 Index (23.59), we can say BLBD is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BLBD indicates a rather cheap valuation: BLBD is cheaper than 84.25% of the companies listed in the same industry.
• 90.55% of the companies in the same industry are more expensive than BLBD, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of BLBD may justify a higher PE ratio.

Profitability Examination 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 6:

• BLBD has a better Return On Assets (20.11%) than 97.64% of its industry peers.
• Looking at the Return On Equity, with a value of 66.15%, BLBD belongs to the top of the industry, outperforming 98.43% of the companies in the same industry.
• BLBD has a Return On Invested Capital of 33.55%. This is amongst the best in the industry. BLBD outperforms 98.43% of its industry peers.
• BLBD has a better Profit Margin (7.83%) than 62.20% of its industry peers.
• BLBD's Profit Margin has improved in the last couple of years.
• BLBD's Operating Margin has improved in the last couple of years.
• BLBD's Gross Margin has improved in the last couple of years.

Assessing Health for NASDAQ:BLBD

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:BLBD, the assigned 6 for health provides valuable insights:

• An Altman-Z score of 5.69 indicates that BLBD is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 5.69, BLBD is doing good in the industry, outperforming 77.95% of the companies in the same industry.
• The Debt to FCF ratio of BLBD is 1.00, which is an excellent value as it means it would take BLBD, only 1.00 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of BLBD (1.00) is better than 89.76% of its industry peers.
• 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.

Evaluating Growth: NASDAQ:BLBD

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:BLBD, the assigned 6 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 225.23% over the past year.
• Measured over the past years, BLBD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.38% on average per year.
• BLBD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.93%.
• The Earnings Per Share is expected to grow by 9.01% on average over the next years. This is quite good.
• BLBD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.93% yearly.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of BLBD contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.