Is United-Guardian, Inc. overvalued or undervalued?

As of 21 March 2025, the valuation grade for United-Guardian, Inc. moved from fair to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued, particularly given its P/E ratio of 13, which is lower than the peer average of 15.34, and a PEG ratio of 0.60, suggesting strong growth potential relative to its price. Additionally, the company boasts an impressive ROCE of 119.03% and a dividend yield of 8.45%, which further supports its attractive valuation.
In comparison to its peers, United-Guardian, Inc. stands out with a more favorable valuation profile, especially when contrasted with Rayonier Advanced Materials, Inc., which has a P/E of -1.04, and Gevo, Inc., which has a P/E of -8.19. Despite its attractive valuation metrics, the company's recent stock performance has been disappointing, with a 1Y return of -45.42% compared to the S&P 500's 17.14%, highlighting the disconnect between market perception and intrinsic value.