Is Amerant Bancorp, Inc. overvalued or undervalued?

As of 23 October 2024, the valuation grade for Amerant Bancorp, Inc. moved from expensive to risky, indicating a significant shift in perceived value. The company is currently assessed as overvalued given its financial metrics, including a Price to Book Value of 0.80 and a negative EV to EBIT ratio of -25.91. The Return on Capital Employed (ROCE) stands at -3.14%, further highlighting the challenges the company faces in generating returns.
In comparison to its peers, Amerant Bancorp's performance is notably weaker. For instance, Pathward Financial, Inc. has a fair valuation with a P/E ratio of 9.68, while Nicolet Bankshares, Inc. also holds a fair valuation with a P/E of 13.68. The stark contrast in valuations and ratios suggests that Amerant is not only struggling relative to its peers but is also positioned unfavorably in the market. Recent stock performance shows a decline of 22.76% year-to-date, significantly underperforming the S&P 500, which has returned 2.44% in the same period.