Is Conn's, Inc. overvalued or undervalued?

As of 8 July 2024, Conn's, Inc. has moved from a risky valuation grade to one that does not qualify. The company appears to be overvalued given its significant negative performance metrics, including a P/E ratio of -0.0001 and an EV to EBITDA ratio of -56.10. Additionally, the ROCE and ROE are both negative at -7.21% and -9.07%, respectively, indicating poor profitability compared to its peers.
In comparison to Hamilton Beach Brands Holding Co., which has a fair valuation with a P/E of 5.71 and an EV to EBITDA of 5.49, Conn's, Inc. clearly underperforms. The stark contrast in valuation ratios suggests that Conn's is not only overvalued but also struggling significantly in the market. Notably, Conn's has experienced a staggering decline in stock value over the past year, with a return of -99.99%, while the S&P 500 has gained 17.14%, further reinforcing the company's overvaluation status.