Is American Vanguard Corp. overvalued or undervalued?

As of 8 August 2024, the valuation grade for American Vanguard Corp. has moved from fair to risky, indicating a significant deterioration in its financial outlook. The company is currently assessed as overvalued, particularly given its troubling financial ratios. The Price to Book Value stands at 0.86, while the EV to EBITDA is at -11.46, reflecting negative earnings before interest, taxes, depreciation, and amortization. Additionally, the ROE is a concerning -31.43%, suggesting that the company is not generating returns on shareholder equity.
In comparison to its peers, American Vanguard Corp. shows stark contrasts. For instance, CVR Partners LP is rated very attractive with a P/E ratio of 12.50, while Oil-Dri Corp. of America is attractive with a P/E of 22.31. This highlights the challenges faced by American Vanguard Corp. in its current valuation context. Furthermore, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -16.20% compared to the index's 2.44%, reinforcing the notion of its overvaluation in the market.