Is Matrix Service Co. overvalued or undervalued?

As of 5 February 2020, the valuation grade for Matrix Service Co. changed from fair to risky, indicating a more cautious outlook. The company appears to be overvalued, particularly given its negative earnings and poor financial ratios. The Price to Book Value stands at 2.38, while the EV to EBITDA is at -10.64, and the ROE is a concerning -14.56%.
In comparison to its peers, Matrix Service Co. has a significantly lower P/E ratio of -19.31 compared to Bowman Consulting Group Ltd.'s P/E of 81.27, highlighting its underperformance in the market. Additionally, Concrete Pumping Holdings, Inc. is categorized as very expensive with a P/E of 31.70, further emphasizing Matrix's unfavorable position. Over the past year, Matrix Service Co. has outperformed the S&P 500 with a return of 25.60% compared to the index's 17.14%, but this does not mitigate the overall valuation concerns.