Is LSB Industries, Inc. overvalued or undervalued?

As of 29 October 2024, the valuation grade for LSB Industries, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.14 and an EV to EBITDA ratio of 11.85, which suggests a high valuation relative to its earnings potential. Additionally, the company's negative ROCE of -0.21% and ROE of -5.76% further support the notion that it is struggling to generate returns for shareholders.
In comparison to its peers, LSB Industries, Inc. has a significantly lower valuation, with its EV to EBITDA ratio of 11.85 compared to Oil-Dri Corp. of America's attractive ratio of 13.69. Other risky peers, such as Piedmont Lithium, Inc. and American Vanguard Corp., also reflect challenging valuations, with EV to EBITDA ratios of -4.86 and -13.46, respectively. Despite a recent positive stock performance with a 5-year return of 441.97%, this is overshadowed by a 3-year decline of -45.73%, while the S&P 500 has outperformed the company over the same period.