Is Hallador Energy Co. overvalued or undervalued?

As of 6 August 2024, Hallador Energy Co. has moved from a valuation grade of very expensive to risky, indicating a significant shift in its perceived value. The company is currently overvalued, with a P/E ratio of 139, which starkly contrasts with its peers, such as Natural Resource Partners LP at 7.55 and SunCoke Energy, Inc. at 8.15. Additionally, Hallador's EV to EBITDA stands at 149.06, further highlighting its premium valuation compared to the industry.
In terms of performance metrics, Hallador's ROCE is at 3.99% and ROE at 4.65%, which are relatively low, suggesting inefficiencies in generating returns for shareholders. The company's valuation appears inflated when compared to its peers, with Hallador's EV to Sales ratio at 1.88, while its closest competitor, Natural Resource Partners LP, maintains a more reasonable valuation. Despite a strong historical performance, including a 97.50% return over the past year, the current valuation metrics suggest that Hallador Energy Co. is not justified at its present price level.