Is Lakeland Industries, Inc. overvalued or undervalued?

As of 5 December 2024, the valuation grade for Lakeland Industries, Inc. has moved from fair to risky, indicating a deterioration in its financial standing. The company is currently overvalued, with a P/E ratio of 40, significantly higher than its peers such as Wolverine World Wide, Inc. with a P/E of 34.40, and G-III Apparel Group Ltd. which boasts a much lower P/E of 4.74. Additionally, Lakeland's EV to EBITDA ratio stands at 28.79, further highlighting its high valuation compared to the industry.
The company's financial metrics reveal a concerning picture, with a ROCE of only 4.37% and a ROE of 3.14%, suggesting inefficiencies in generating returns on capital and equity. Furthermore, despite a high dividend yield of 47.57%, the overall performance has been disappointing, as evidenced by a year-to-date stock return of -45.09%, contrasting sharply with the S&P 500's positive return of 2.44% in the same period. This combination of high valuation ratios and poor performance metrics reinforces the conclusion that Lakeland Industries, Inc. is currently overvalued.