Is Metallus, Inc. overvalued or undervalued?

As of 8 May 2025, Metallus, Inc. has moved from an attractive to a risky valuation grade, indicating a significant deterioration in its financial outlook. The company appears to be overvalued, particularly given its negative P/E ratio and ROE of -1.75%. Key ratios include a Price to Book Value of 0.86, an EV to EBITDA of 11.79, and an EV to Sales ratio of 0.40, which suggest that the company's valuation metrics are not favorable compared to its peers.
In comparison to its industry peers, Metallus, Inc. shows a stark contrast with Radius Recycling, Inc. at an EV to EBITDA of 65.1450 and Ryerson Holding Corp. at 11.8101, both of which indicate higher valuations despite their own risky classifications. Additionally, Mesabi Trust stands out as attractive with a P/E of 3.3467. Notably, while Metallus has experienced a 2.48% return year-to-date, it has significantly underperformed over the past year with a decline of 30.88%, further supporting the view that it is overvalued in the current market context.