Is Chicago Rivet & Machine Co. overvalued or undervalued?

As of 7 November 2023, the valuation grade for Chicago Rivet & Machine Co. has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued, particularly given its negative performance metrics and ratios. Key valuation ratios include a Price to Book Value of 0.77, an EV to Sales ratio of 0.57, and a ROCE of -21.27%.
In comparison to its peers, Chicago Rivet & Machine Co. shows significant underperformance; for instance, Insteel Industries, Inc. has a P/E ratio of 22.80, while Olympic Steel, Inc. stands at 26.63, both indicating a more favorable valuation. The company's stock has also underperformed against the S&P 500, with a year-to-date return of -31.19% compared to the index's 12.22%, reinforcing the notion that it is overvalued in the current market context.