Is Mammoth Energy Services, Inc. overvalued or undervalued?

As of 1 March 2024, the valuation grade for Mammoth Energy Services, Inc. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued, particularly given its negative earnings and poor return metrics. Key ratios include a Price to Book Value of 0.51, an EV to EBIT of -0.46, and an EV to Sales of 0.27, which suggest that the company's valuation does not reflect a healthy financial position.
In comparison to its peers, Mammoth Energy Services has a P/E ratio of -2.5695, while ProFrac Holding Corp. has a P/E of -2.5969 and ProPetro Holding Corp. shows a more favorable P/E of 8.9714. The stark contrast in valuation metrics highlights the challenges Mammoth faces within its industry. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -22.00% compared to the S&P 500's 12.22%, reinforcing the notion that it is currently overvalued.