Is Gencor Industries, Inc. overvalued or undervalued?

As of 17 October 2025, Gencor Industries, Inc. has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its current metrics, with a P/E ratio of 13, which is higher than the peer average P/E of approximately 11.82 from Douglas Dynamics, Inc. Additionally, Gencor's EV to EBITDA ratio stands at 5.22, while peers like The Manitowoc Co., Inc. have a lower ratio of 7.68, indicating a less favorable valuation in comparison. The PEG ratio of 0.37 suggests that the stock may not be justified at its current price given its growth prospects.
In terms of returns, Gencor Industries has underperformed against the S&P 500, with a year-to-date return of -22.15% compared to the S&P's 13.30%. This trend continues over one year, where Gencor's return of -35.52% starkly contrasts with the S&P 500's 14.08%, reinforcing the notion that the stock is overvalued in the current market environment.