Is American Vanguard Corp. overvalued or undervalued?

As of 8 August 2024, the valuation grade for American Vanguard Corp. has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued, given its negative performance metrics and low valuation ratios. Key ratios include a Price to Book Value of 0.86, an EV to EBITDA of -11.46, and a Dividend Yield of 13.13%, which, while attractive, does not compensate for the overall financial instability reflected in its negative returns.
In comparison to its peers, American Vanguard Corp. shows a stark contrast; for instance, Oil-Dri Corp. of America is rated very attractive with a P/E of 25.16, while LSB Industries, Inc. is also rated risky with a P/E of -18.11. The company's stock has performed poorly over the long term, with a 3-year return of -70.84% compared to the S&P 500's 70.41%, highlighting the significant underperformance relative to the broader market.