Is First Northwest Bancorp (Washington) overvalued or undervalued?

As of 25 April 2024, First Northwest Bancorp has moved from a fair valuation to a risky classification. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.59, an EV to Sales ratio of 2.75, and a negative ROE of -10.96%. These figures indicate significant financial distress and a lack of profitability.
In comparison to its peers, First Northwest Bancorp's valuation stands out negatively, particularly against Hingham Institution for Savings, which has a P/E ratio of 17.47, and Third Coast Bancshares, Inc., with a P/E of 8.07. The company's recent performance has also been poor, with a year-to-date return of -26.37%, significantly underperforming the S&P 500's 2.44% return. Overall, the combination of low valuation ratios and negative returns suggests that First Northwest Bancorp is overvalued in the current market context.