Blue Bird Story

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BLBD -- USA Stock  

USD 22.20  0.04  0.18%

As many rational traders are trying to avoid consumer cyclical space, it makes sense to digest Blue Bird a little further and understand how it stands against Fisker and other similar entities. We are going to discuss some of the competitive aspects of both Blue Bird and Fisker.
Published over a month ago
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Is Blue Bird riskier than Fisker Inc (NYSE:FSR)?
By analyzing existing basic indicators between Blue Bird and Fisker, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Fisker with a short position in Blue Bird. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Blue Bird has an asset utilization ratio of 338.77 percent. This indicates that the company is making $3.39 for each dollar of assets. An increasing asset utilization means that Blue Bird is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Blue Bird or Fisker is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Blue Bird's Liquidity

Blue Bird financial leverage refers to using borrowed capital as a funding source to finance Blue Bird ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Blue Bird financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Blue Bird's total debt and its cash.

Correlation Between Blue Bird and Fisker Inc

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Blue Bird together with similar or unrelated positions with a negative correlation. For example, you can also add Fisker to your portfolio. If Fisker is not perfectly correlated to Blue Bird it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Blue Bird for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between BLBD and FSR for more information.

Breaking down Blue Bird Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Blue Bird revenue. Based on the latest financial disclosure, Blue Bird reported 941.34 M of revenue. This is 86.8% lower than that of the Consumer Cyclical sector and 99.02% lower than that of the Auto Manufacturers industry. The revenue for all United States stocks is 90.02% higher than that of Blue Bird. As for Fisker we see revenue of 592.95 M, which is 99.38% lower than that of the Auto Manufacturers

Sector
7.1 B
BLBD941.34 Million10.86
Sector7.13 Billion82.29
FSR592.95 Million6.84

Blue Bird has 90 percent likelihood to dip below $16.37 in January

The kurtosis is down to 11.75 as of today. Blue Bird currently demonstrates below-verage downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.51. However, we do advice investors to further question Blue Bird expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Blue Bird

Although some companies within the auto manufacturers industry are still a little expensive, even after the recent corrections, Blue Bird may offer a potential longer-term growth to shareholders. In closing, as of the 16th of December 2020, our analysis shows that Blue Bird barely shadows the market. The firm is overvalued and projects low chance of bankruptcy for the next 2 years. However, our overall 30 days buy vs. sell advice on the firm is Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Blue Bird. Please refer to our Terms of Use for any information regarding our disclosure principles.

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