Is Gencor Industries, Inc. overvalued or undervalued?

As of 30 June 2025, Gencor Industries, Inc. has moved from an expensive to a fair valuation grade. The company appears fairly valued based on its current metrics, with a P/E ratio of 13, an EV to EBITDA ratio of 5.22, and a PEG ratio of 0.37, indicating potential for growth relative to its price. In comparison to peers, Douglas Dynamics, Inc. has a more attractive P/E ratio of 11.82, while The Manitowoc Co., Inc. also shows an attractive valuation with a P/E of 8.08.
Despite the fair valuation, Gencor's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -13.60% compared to the S&P 500's 12.22%. This underperformance over the past year, where Gencor's return was -24.77% against the S&P 500's 17.14%, suggests that while the stock may be fairly valued, market sentiment may be weighing on its price.