Is ENGlobal Corp. overvalued or undervalued?

As of 11 March 2021, ENGlobal Corp. has moved from an expensive to a risky valuation grade. The company is currently considered overvalued given its financial metrics and performance. Key ratios include a Price to Book Value of -0.02, an EV to EBIT of -0.44, and an EV to EBITDA of -0.54, all indicating significant financial distress and negative capital employed.
In comparison with peers, ENGlobal Corp. shows a stark contrast to Ranger Energy Services, Inc., which has a fair valuation with a P/E ratio of 12.70 and an EV to EBITDA of 3.39, highlighting the disparity in financial health and market perception. Other risky peers like CSI Compressco LP and Forum Energy Technologies, Inc. exhibit even more severe negative valuations, further emphasizing ENGlobal's precarious position. Additionally, the company's stock has dramatically underperformed against the S&P 500, with a year-to-date return of -96.86%, reinforcing the notion that it is overvalued in the current market context.