Is Lakeland Industries, Inc. overvalued or undervalued?

As of 5 December 2024, the valuation grade for Lakeland Industries, Inc. has moved from expensive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued, especially when considering its P/E ratio of 40, which is significantly higher than peers like Weyco Group, Inc. with a P/E of 11.25 and Superior Group of Cos., Inc. at 23.59. Additionally, Lakeland's EV to EBITDA ratio stands at 28.79, further emphasizing its high valuation compared to the industry.
In terms of performance, Lakeland's recent stock returns have been disappointing, with a year-to-date decline of 41.80% compared to a 12.22% gain in the S&P 500, and a one-year return of -25.50% versus the S&P 500's 17.14%. This stark contrast in performance reinforces the notion that Lakeland Industries is currently overvalued in the market.