Blue Bird Corp (BLBD) stock analysis

P/E below its 5-year median

Blue Bird's P/E of 7.0 is below its own 5-year median of 15.1.

P/E below the industry

Blue Bird's P/E of 7.0 is below the Motor Vehicles and Motor Vehicle Equipment median of 18.7.

EV/EBITDA below its 5-year median

Blue Bird's EV/EBITDA of 8.5 is below its 5-year median of 10.1.

P/B above the industry

Blue Bird's price-to-book of 2.78 is above the Motor Vehicles and Motor Vehicle Equipment median of 1.56.

Trading below fair value

The share price of $57.56 is below our fair value estimate of $92.53.

Margin of safety over 20%

The price is 37.8% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 22.7% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 143% over the last twelve months, against a 5-year average of 60.0% a year.

Growing faster than the industry

Revenue grew 13.5% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance raised

Blue Bird raised its full-year 2026 Adj. EBITDA outlook on Aug 5, 2026.

Gross margin improving

Gross margin was 20.6% over the last twelve months, against 19.5% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 43.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Blue Bird's return on equity of 64.3% is above the Motor Vehicles and Motor Vehicle Equipment median of 3.5%.

Earnings grew over 5 years

Net income grew 60.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 17.5% over the last twelve months, against a 5-year average of 2.6%.

Net margin above the industry

Blue Bird's net margin of 17.5% is above the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

Low debt

Debt is 13.3% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 208% of total debt.

Interest well covered

Operating income covers interest expense 27.9 times.

Short-term assets cover short-term debts

Current assets are 1.64 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.64; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Blue Bird has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.