Is Hillman Solutions Corp. overvalued or undervalued?

As of 23 May 2025, the valuation grade for Hillman Solutions Corp. has moved from very attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a P/E ratio of 52, a Price to Book Value of 1.23, and an EV to EBITDA ratio of 9.54. In comparison to peers, UGI Corp. has a P/E of 13.69 and an EV to EBITDA of 9.15, while GMS, Inc. is considered expensive with a P/E of 14.22.
Despite the recent changes in valuation, Hillman Solutions Corp. has underperformed relative to the S&P 500, with a year-to-date return of -29.57% compared to the index's 2.44%. This underperformance, coupled with a low ROCE of 4.89% and ROE of 2.34%, suggests that while the company is fairly valued, it may face challenges in achieving growth and generating returns that meet investor expectations.