Is Farmer Brothers Co. overvalued or undervalued?

As of 6 February 2018, the valuation grade for Farmer Brothers Co. has moved from fair to risky, indicating a significant downgrade in its financial health. The company is currently assessed as overvalued given its poor performance metrics, including a Price to Book Value of 0.90 and an EV to EBITDA ratio of 11.21, which is notably high compared to its peers. The company's ROE stands at -35.98%, reflecting substantial losses, and its ROCE is also negative at -7.36%.
In comparison to its peers, Farmer Brothers Co. exhibits a P/E ratio of -2.36, while Seneca Foods Corp. shows a P/E of 22.78 and John B. Sanfilippo & Son, Inc. boasts a more attractive P/E of 13.33. The stark contrast in these ratios suggests that Farmer Brothers Co. is not only underperforming relative to its industry but is also at a higher risk of further declines. Additionally, the company's stock has significantly lagged behind the S&P 500, with a year-to-date return of -23.89% compared to the index's 2.44%.