Last Updated: 17 Sep 2024
Executive Summary
Blue Bird Corp (BLBD) is a leading manufacturer of school buses in North America. The company has a strong financial position with a market capitalization of $1.62 billion and an EBITDA of $155.6 million. BLBD's trailing PE ratio of 16.67 is in line with the industry average, and its forward PE ratio of 14.56 indicates potential for growth. The stock price is currently trading at $50.19, below its 52-week high of $59.40.
Company Overview
Blue Bird Corp was founded in 1927 and is headquartered in Macon, Georgia. The company designs, manufactures, and sells school buses and related parts in the United States, Canada, and internationally. BLBD has a strong brand reputation and a loyal customer base. The company's buses are known for their safety, durability, and reliability.
Fundamental Analysis
BLBD's financial performance has been strong in recent years. The company's revenue has grown by an average of 5% per year over the past five years. In fiscal 2023, BLBD reported revenue of $1.3 billion and net income of $92.6 million. The company's gross profit margin is 28.1%, and its operating margin is 11.9%. BLBD has a strong balance sheet with $250 million in cash and equivalents and no long-term debt.
Technical Analysis
BLBD's stock price has been in a downtrend since reaching a 52-week high of $59.40 in March 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is 45, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
BLBD's stock price is likely to remain under pressure in the short term due to the overall weakness in the stock market. However, the company's strong fundamentals and positive long-term outlook suggest that the stock could rebound in the future.
Long Term Outlook
BLBD is well-positioned for long-term growth. The company has a strong brand, a loyal customer base, and a solid financial foundation. The increasing demand for school buses in the United States and Canada is expected to drive BLBD's growth in the coming years.
Analyst Recommendations
The majority of analysts have a buy rating on BLBD. The average analyst target price is $58.43, which represents a potential upside of 16% from the current price.
Conclusion
Blue Bird Corp is a solid investment for long-term investors. The company has a strong financial position, a loyal customer base, and a positive long-term outlook. While the stock price may remain under pressure in the short term, it is likely to rebound in the future.
