Is Flushing Financial Corp. overvalued or undervalued?

As of 28 January 2025, the valuation grade for Flushing Financial Corp. has moved from very attractive to risky, indicating a significant shift in the company's financial outlook. The company appears to be overvalued given its current financial metrics, with a Price to Book Value of 0.64 and an EV to Sales ratio of 1.08. Notably, the company has reported negative returns on capital employed (ROCE) of -6.17% and a negative return on equity (ROE) of -3.87%, which further supports the overvaluation assessment.
In comparison to its peers, Flushing Financial Corp. has a notably lower EV to EBITDA ratio of -12.33, while Central Pacific Financial Corp. and Camden National Corp. are valued at 11.97 and 11.59, respectively. This stark contrast highlights the challenges Flushing faces in generating positive earnings relative to its peers. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -17.16%, significantly lagging behind the S&P 500's positive return of 2.44%. Overall, these factors suggest that Flushing Financial Corp. is currently overvalued in the market.