Investors should take notice of NASDAQ:BLBD—it offers a great deal for the fundamentals it presents.

Our stock screening tool has pinpointed BLUE BIRD CORP (NASDAQ:BLBD) as an undervalued stock. NASDAQ:BLBD maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Examination for NASDAQ:BLBD

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:BLBD was assigned a score of 8 for valuation:

• With a Price/Earnings ratio of 11.83, the valuation of BLBD can be described as very reasonable.
• Compared to the rest of the industry, the Price/Earnings ratio of BLBD indicates a rather cheap valuation: BLBD is cheaper than 88.98% of the companies listed in the same industry.
• BLBD is valuated cheaply when we compare the Price/Earnings ratio to 28.19, which is the current average of the S&P500 Index.
• A Price/Forward Earnings ratio of 10.33 indicates a reasonable valuation of BLBD.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of BLBD indicates a rather cheap valuation: BLBD is cheaper than 94.49% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of BLBD to the average of the S&P500 Index (24.37), 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 83.46% of the companies listed in the same industry.
• 88.98% 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.
• BLBD has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Examination for NASDAQ:BLBD

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:BLBD scores a 6 out of 10:

• BLBD has a better Return On Assets (20.11%) than 97.64% of its industry peers.
• BLBD has a better Return On Equity (66.15%) than 98.43% of its industry peers.
• BLBD's Return On Invested Capital of 33.55% is amongst the best of the industry. BLBD outperforms 98.43% of its industry peers.
• Looking at the Profit Margin, with a value of 7.83%, BLBD is in the better half of the industry, outperforming 61.42% of the companies in the same industry.
• In the last couple of years the Profit Margin of BLBD has grown nicely.
• In the last couple of years the Operating Margin of BLBD has grown nicely.
• BLBD's Gross Margin has improved in the last couple of years.

Health Insights: NASDAQ:BLBD

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:BLBD has received a 6 out of 10:

• BLBD has an Altman-Z score of 5.82. This indicates that BLBD is financially healthy and has little risk of bankruptcy at the moment.
• BLBD has a better Altman-Z score (5.82) than 77.95% of its industry peers.
• 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.
• BLBD's Debt to FCF ratio of 1.00 is amongst the best of the industry. BLBD outperforms 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.
• The Earnings Per Share has been growing by 16.38% on average over the past years. This is quite good.
• The Revenue has grown by 18.93% in the past year. This is quite good.
• The Earnings Per Share is expected to grow by 9.01% on average over the next years. This is quite good.
• The Revenue is expected to grow by 8.93% on average over the next years. This is quite good.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.