Is Matrix Service Co. overvalued or undervalued?

As of 5 February 2020, the valuation grade for Matrix Service Co. has moved from very attractive to risky, indicating a significant shift in its financial standing. The company is currently overvalued, as evidenced by its negative P/E ratio of -16.63 and an EV to EBITDA ratio of -10.64, both of which highlight its loss-making position. Additionally, the Price to Book Value stands at 2.38, suggesting that the market is pricing the company's assets at a premium despite the underlying financial challenges.
In comparison to its peers, Matrix Service Co. is underperforming, with Argan, Inc. showing a fair valuation with a P/E of 28.81 and EV to EBITDA of 21.40, while Tutor Perini Corp. is also categorized as risky with a P/E of -20.62. The company's recent stock performance has been strong, with a 1-year return of 28.18%, significantly outpacing the S&P 500's return of 10.26%, but this does not mitigate the underlying valuation concerns.