BLUE BIRD CORP (NASDAQ:BLBD) is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Our stock screening tool has pinpointed BLUE BIRD CORP (NASDAQ:BLBD) as an undervalued stock option. NASDAQ:BLBD retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Understanding NASDAQ:BLBD's Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:BLBD boasts a 9 out of 10:

• A Price/Earnings ratio of 9.68 indicates a reasonable valuation of BLBD.
• 89.76% of the companies in the same industry are more expensive than BLBD, based on the Price/Earnings ratio.
• BLBD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.71.
• Based on the Price/Forward Earnings ratio of 7.41, the valuation of BLBD can be described as very cheap.
• 97.64% of the companies in the same industry are more expensive than BLBD, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 22.34, BLBD is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, BLBD is valued cheaper than 85.83% 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 92.13% of the companies listed in the same industry.
• 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.

Exploring NASDAQ:BLBD's Profitability

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:

• With an excellent Return On Assets value of 20.20%, BLBD belongs to the best of the industry, outperforming 96.85% of the companies in the same industry.
• BLBD has a Return On Equity of 60.16%. This is amongst the best in the industry. BLBD outperforms 98.43% of its industry peers.
• With an excellent Return On Invested Capital value of 30.58%, BLBD belongs to the best of the industry, outperforming 98.43% of the companies in the same industry.
• BLBD's Profit Margin of 8.05% is fine compared to the rest of the industry. BLBD outperforms 65.35% 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.

Unpacking NASDAQ:BLBD's Health Rating

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:

• BLBD has an Altman-Z score of 5.45. This indicates that BLBD is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.45, BLBD is in the better half of the industry, outperforming 78.74% of the companies in the same industry.
• The Debt to FCF ratio of BLBD is 0.78, which is an excellent value as it means it would take BLBD, only 0.78 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of BLBD (0.78) is better than 88.19% of its industry peers.
• A Debt/Equity ratio of 0.49 indicates that BLBD is not too dependend on debt financing.

How do we evaluate the Growth for 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 5 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 53.07% over the past year.
• BLBD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.38% yearly.
• The Revenue has grown by 10.59% in the past year. This is quite good.
• Based on estimates for the next years, BLBD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.60% on average per year.

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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.