Is Farmer Brothers Co. overvalued or undervalued?

As of 6 February 2018, the valuation grade for Farmer Brothers Co. moved from expensive to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 0.90, an EV to EBITDA ratio of 11.21, and a troubling ROE of -35.98%. In comparison, peers such as Seneca Foods Corp. exhibit a fair valuation with a P/E ratio of 26.68, while John B. Sanfilippo & Son, Inc. is considered attractive with a P/E of 12.73.
Farmer Brothers Co. has struggled significantly in recent years, with a 3-year return of -63.74% compared to the S&P 500's 70.41%, further reinforcing the notion that the stock is not performing well relative to the broader market. Overall, the combination of negative returns and poor financial ratios suggests that Farmer Brothers Co. is currently overvalued.