Is BGSF, Inc. overvalued or undervalued?

As of 6 November 2024, the valuation grade for BGSF, Inc. has moved from very attractive to risky, indicating a significant shift in its perceived investment quality. The company is currently considered overvalued based on its financial metrics. Key ratios include a price-to-book value of 0.59, an EV to EBITDA ratio of 12.62, and a negative ROE of -5.49%.
In comparison to peers, BGSF, Inc. has a notably lower P/E ratio of -13.29, while Barrett Business Services, Inc. stands at an attractive P/E of 20.28, highlighting a stark contrast in valuation. Additionally, Kelly Services, Inc. is also categorized as risky with a P/E of 5.48, further emphasizing the challenges BGSF faces in its competitive landscape. Recent stock performance shows BGSF has outperformed the S&P 500 over the past week, but its longer-term returns remain significantly negative, reinforcing concerns about its current valuation.