Is MidWestOne Financial Group, Inc. overvalued or undervalued?

As of 24 October 2024, the valuation grade for MidWestOne Financial Group, Inc. has moved from expensive to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 1.08 and an EV to Capital Employed ratio of 1.11, which suggests that investors are paying a premium for the company's assets despite its negative profitability indicators, such as a ROCE of -19.99% and a ROE of -8.35%.
In comparison to its peers, Five Star Bancorp has a P/E ratio of 13.58, while Mid Penn Bancorp, Inc. stands at 12.76, both reflecting a more favorable valuation than MidWestOne. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of 2.44% compared to the index's 12.22%, and a three-year return of -1.58% versus 70.41% for the S&P 500, reinforcing the notion that the stock is not performing well relative to broader market trends.