Is Atlas Energy Solutions, Inc. overvalued or undervalued?

As of 24 February 2025, the valuation grade for Atlas Energy Solutions, Inc. has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued, with a P/E ratio of 78, which is substantially higher than its peers, such as Knife River Corp. at 25.23 and United States Lime & Minerals, Inc. at 24.79. Additionally, Atlas's EV to EBITDA stands at 8.93, while its EV to EBIT is 21.65, further highlighting its premium valuation relative to industry standards.
The company's financial performance metrics reveal a ROCE of 5.46% and a ROE of just 1.61%, which are notably low compared to the expectations set by its high valuation. This suggests that the market may be pricing in growth that the company has yet to deliver. Furthermore, Atlas Energy Solutions has underperformed against the S&P 500 over the past year, with a stock return of -29.32% compared to the index's 10.26%. Overall, the combination of high valuation ratios and disappointing returns suggests that Atlas Energy Solutions, Inc. is overvalued in the current market environment.