Is Texas Community Bancshares, Inc. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Texas Community Bancshares, Inc. has moved from fair to attractive, indicating a more favorable outlook. The company appears undervalued, supported by a P/E ratio of 24, a price-to-book value of 0.92, and a PEG ratio of 0.13, which suggests strong growth potential relative to its price. In comparison, Magyar Bancorp, Inc. has a very attractive P/E of 11.61, while Lake Shore Bancorp, Inc. has an attractive P/E of 21.02, highlighting Texas Community's relatively higher valuation metrics.
Despite the higher P/E ratio, Texas Community Bancshares has shown solid performance with a year-to-date return of 8.85%, although it lags behind the S&P 500's return of 12.22% over the same period. This performance, alongside its attractive valuation grade, reinforces the notion that the stock is positioned well for potential upside in the current market environment.