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 deterioration in its investment appeal. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.64 and an EV to Sales ratio of 1.08, which suggest that the market may be pricing in more value than the company can deliver. Additionally, the negative ROCE of -6.17% and ROE of -3.87% further highlight the challenges the company faces in generating returns.
In comparison to its peers, Flushing Financial Corp. has a notably lower EV to EBITDA ratio of -12.33, while CNB Financial Corp. has a fair valuation with a P/E of 13.93, and Camden National Corp. is attractive with a P/E of 11.68. The recent stock performance shows that Flushing Financial Corp. has underperformed against the S&P 500 over the last year, with a return of -2.37% compared to the S&P 500's 17.14%, reinforcing the notion that the stock may not be a sound investment at this time.