Is First Northwest Bancorp (Washington) overvalued or undervalued?

As of 25 April 2024, the valuation grade for First Northwest Bancorp has moved from expensive to risky, indicating a deteriorating outlook. The company appears to be overvalued, particularly given its negative returns and poor financial ratios. Key valuation metrics include a Price to Book Value of 0.59, an EV to Capital Employed ratio of 0.84, and a Dividend Yield of 314.31%, which, while high, may not be sustainable given the company's losses.
In comparison to its peers, First Northwest Bancorp's valuation is significantly lower than that of Hingham Institution for Savings, which has a P/E ratio of 18.15, and Third Coast Bancshares, Inc., which boasts a very attractive P/E of 9.69. The company's returns have lagged behind the S&P 500, with a YTD return of -28.43% compared to the index's 12.22%, reinforcing the perception of overvaluation.