Is Alico, Inc. overvalued or undervalued?

As of 12 February 2025, the valuation grade for Alico, Inc. has moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued based on its current financial metrics, particularly with a Price to Book Value of 2.05 and a concerning EV to EBITDA ratio of -10.06. Additionally, the Return on Capital Employed (ROCE) stands at a troubling -81.72%, suggesting significant inefficiencies in generating returns from capital.
In comparison to its peers, Alico, Inc. shows a stark contrast; for instance, SNDL, Inc. has an EV to EBITDA of 15.80, while Calavo Growers, Inc. is considered expensive with a P/E ratio of 32.23. This highlights Alico's unfavorable position within the industry. Furthermore, while Alico has seen a year-to-date return of 30.97%, it still lags behind the S&P 500's 12.22% return, and its longer-term performance over three and five years is significantly lower than the benchmark, indicating potential challenges ahead.