Is Kentucky First Federal Bancorp overvalued or undervalued?

As of 12 February 2024, the valuation grade for Kentucky First Federal Bancorp has moved from very attractive to risky. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 0.46 and an EV to Capital Employed ratio of 0.63, indicating a lack of profitability and potential inefficiencies in capital utilization. Additionally, the negative EV to EBIT and EV to EBITDA ratios of -43.51 further underscore the company's struggles.
In comparison to its peers, Kentucky First Federal Bancorp's valuation is concerning, especially when contrasted with Magyar Bancorp, Inc., which has a P/E ratio of 11.61 and is rated very attractive. Other peers like CFSB Bancorp, Inc. and NSTS Bancorp, Inc. also share a risky valuation grade, but their negative EV to EBIT ratios are significantly worse at -92.33 and -61.49, respectively. Notably, Kentucky First Federal Bancorp has outperformed the S&P 500 with a 1-year return of 29.77% compared to the index's 17.14%, but its long-term performance over 3 and 5 years shows substantial underperformance, suggesting that recent gains may not be sustainable.