Is Northeast Community Bancorp, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Northeast Community Bancorp, Inc. moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 7, a Price to Book Value of 0.96, and an EV to EBIT of 3.49. In comparison to peers, First Financial Corp. has a P/E of 14.27, and Alerus Financial Corp. shows a P/E of 13.80, highlighting Northeast Community Bancorp's relative undervaluation.
Despite recent underperformance against the S&P 500, with a year-to-date return of -13.00% compared to the index's 12.22%, the company's strong ROCE of 27.05% and ROE of 14.36% suggest solid operational efficiency. Overall, the attractive valuation grade and favorable ratios indicate that Northeast Community Bancorp, Inc. is positioned as an appealing investment opportunity.