Is J.Jill, Inc. overvalued or undervalued?

As of 19 March 2025, the valuation grade for J.Jill, Inc. has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered undervalued, with a P/E ratio of 5.02, significantly lower than its peers such as Winmark Corp. at 38.17 and Shoe Carnival, Inc. at 12.12. Additionally, J.Jill boasts a robust ROCE of 44.76% and a high dividend yield of 90.32%, which further supports its undervaluation status.
In comparison to its peers, J.Jill's EV to EBITDA ratio stands at 3.26, which is more favorable than Winmark Corp.'s 28.99, highlighting its competitive positioning in the market. Despite recent stock performance trailing the S&P 500, particularly with a year-to-date return of -49.86% compared to the S&P 500's 2.44%, the fundamental metrics suggest that J.Jill, Inc. remains an attractive investment opportunity given its strong financial ratios and lower valuation relative to peers.