BLUE BIRD CORP (NASDAQ:BLBD): good value for what you're paying.

Our stock screener has spotted BLUE BIRD CORP (NASDAQ:BLBD) as an undervalued stock with solid fundamentals. BLBD shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Looking at the Valuation

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. BLBD was assigned a score of 9 for valuation:

• Based on the Price/Earnings ratio of 10.05, the valuation of BLBD can be described as reasonable.
• 89.84% of the companies in the same industry are more expensive than BLBD, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 28.33. BLBD is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 7.70, which indicates a rather cheap valuation of BLBD.
• 96.88% of the companies in the same industry are more expensive than BLBD, based on the Price/Forward Earnings ratio.
• BLBD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.37.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BLBD indicates a rather cheap valuation: BLBD is cheaper than 82.03% of the companies listed in the same industry.
• BLBD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BLBD is cheaper than 89.84% 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.
• BLBD has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Examination for 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. BLBD scores a 6 out of 10:

• Looking at the Return On Assets, with a value of 20.20%, BLBD belongs to the top of the industry, outperforming 97.66% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 60.16%, BLBD belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
• BLBD has a Return On Invested Capital of 30.58%. This is amongst the best in the industry. BLBD outperforms 98.44% of its industry peers.
• BLBD has a Profit Margin of 8.05%. This is in the better half of the industry: BLBD outperforms 63.28% of its industry peers.
• BLBD's Profit Margin has improved in the last couple of years.
• 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.

Deciphering BLBD's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. BLBD has achieved a 6 out of 10:

• BLBD has an Altman-Z score of 5.51. This indicates that BLBD is financially healthy and has little risk of bankruptcy at the moment.
• BLBD has a Altman-Z score of 5.51. This is amongst the best in the industry. BLBD outperforms 82.81% of its industry peers.
• BLBD has a debt to FCF ratio of 0.78. This is a very positive value and a sign of high solvency as it would only need 0.78 years to pay back of all of its debts.
• BLBD has a Debt to FCF ratio of 0.78. This is amongst the best in the industry. BLBD outperforms 88.28% of its industry peers.
• BLBD has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.

Growth Assessment of BLBD

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. BLBD was assigned a score of 5 for growth:

• BLBD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.07%, which is quite impressive.
• 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 10.59% in the past year. 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 8.60% yearly.

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

Check the latest full fundamental report of BLBD for a complete fundamental analysis.

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.