Is Genesis Energy LP overvalued or undervalued?

As of 31 October 2024, the valuation grade for Genesis Energy LP has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, given its high Price to Book Value of 6.38 and an EV to EBITDA ratio of 9.35, which is significantly higher than peers like Cabot Corp., which has an EV to EBITDA of 6.75, and Minerals Technologies, Inc. at 9.13. Additionally, the company's ROCE stands at a modest 6.98%, while its ROE is negative at -0.19%, further suggesting underlying issues.
In terms of recent performance, Genesis Energy LP has shown a strong year-to-date return of 66.07%, outperforming the S&P 500's 12.22%. However, over a three-year period, its return of 48.19% lags behind the S&P 500's 70.41%, indicating that while the stock has had a good run recently, its long-term performance does not match the benchmark. Overall, the combination of high valuation ratios and mixed performance metrics leads to the conclusion that Genesis Energy LP is currently overvalued.