Is Compass Minerals International, Inc. overvalued or undervalued?

As of 7 February 2024, the valuation grade for Compass Minerals International, Inc. has moved from expensive to risky. The company is currently considered overvalued. Key ratios include a Price to Book Value of 3.61, an EV to EBITDA of 10.74, and a ROCE of 4.43%. Notably, the company has a negative P/E ratio due to losses, which further supports the overvaluation assessment.
In comparison to peers, Hawkins, Inc. is rated attractive with a P/E of 33.59 and an EV to EBITDA of 18.73, while Genesis Energy LP and Ecovyst, Inc. are both classified as risky, with EV to EBITDA ratios of 9.39 and 9.27, respectively. The stark contrast in valuation metrics highlights the challenges facing Compass Minerals. Despite a strong year-to-date return of 76.09%, the company's long-term performance has lagged significantly behind the S&P 500, indicating potential underlying issues that contribute to its current overvaluation.