Is Civeo Corp. overvalued or undervalued?

As of 27 February 2025, the valuation grade for Civeo Corp. has moved from fair to risky, indicating a deterioration in its financial health and investment appeal. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.43, an EV to EBITDA ratio of 5.31, and a troubling ROE of -8.75%. In comparison, Playa Hotels & Resorts NV is considered expensive with a P/E of 27.87 and an EV to EBITDA of 6.84, highlighting the relative overvaluation of Civeo.
Recent stock performance further underscores this valuation concern, as Civeo's one-year return of -18.55% significantly lags behind the S&P 500's return of 17.14%, and its three-year return of -15.92% contrasts sharply with the S&P 500's impressive 70.41%. Overall, these factors suggest that Civeo Corp. is not only facing challenges in profitability but is also trading at a premium relative to its peers, reinforcing the view that it is overvalued.