Is United Security Bancshares (California) overvalued or undervalued?

As of 10 June 2025, the valuation grade for United Security Bancshares (California) has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 11, an EV to EBIT of 8.23, and a Price to Book Value of 1.13, which are favorable compared to its peers.
In comparison to its peers, United Security Bancshares has a lower P/E ratio than ChoiceOne Financial Services, Inc. at 16.34, and is also more attractive than Penns Woods Bancorp, Inc. with a P/E of 10.14. The company's return on equity (ROE) stands at 10.01%, and its return on capital employed (ROCE) is 14.03%, further supporting its undervalued status. Additionally, while the stock has underperformed the S&P 500 year-to-date with a return of -17.82% compared to 2.44%, its one-year return of 14.80% suggests potential for recovery and growth.