Is Superior Group of Cos., Inc. overvalued or undervalued?

As of 25 February 2025, the valuation grade for Superior Group of Cos., Inc. has moved from fair to expensive, indicating that the company is currently overvalued. The P/E ratio stands at 20, which is significantly higher than peers such as Hanesbrands, Inc. with a P/E of 8.93 and G-III Apparel Group Ltd. at 4.74. Additionally, the company's EV to EBITDA ratio of 8.63 and EV to Sales ratio of 0.44 further suggest that it is not positioned favorably compared to its competitors.
In terms of financial performance, the company's ROCE is 5.58% and ROE is 4.20%, which are relatively low and do not justify the current valuation. The dividend yield of 5.60% may provide some appeal, but the overall metrics indicate that Superior Group of Cos., Inc. is overvalued in the current market context. Furthermore, the company's stock has underperformed significantly compared to the S&P 500, with a year-to-date return of -39.32% versus the index's 2.44%, reinforcing the notion that the stock is not a favorable investment at this time.