Is Metallus, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Metallus, Inc. has moved from expensive to risky, indicating a shift in perception regarding its market value. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 0.86 and an EV to EBITDA ratio of 11.79, which suggests that investors are paying a premium relative to its earnings potential. Additionally, the negative ROCE of -3.68% and ROE of -1.75% further highlight the company's struggles in generating returns.
In comparison to its peers, Metallus, Inc. has a significantly lower P/E ratio of -61.98 compared to Ryerson Holding Corp.'s -32.11 and Mesabi Trust's attractive P/E of 4.39. This stark contrast underscores the challenges Metallus faces in the ferrous metals industry. Notably, while the company has shown a strong 5-year return of 335.86%, it has underperformed against the S&P 500 over the same period, which returned 96.61%. This performance, coupled with the current valuation metrics, reinforces the conclusion that Metallus, Inc. is overvalued.