Is Westrock Coffee Co. overvalued or undervalued?

As of 10 February 2022, the valuation grade for Westrock Coffee Co. has moved from does not qualify to risky, indicating a significant shift in its financial outlook. The company is currently assessed as overvalued given its troubling financial ratios, including a Price to Book Value of 1.85 and a negative EV to EBITDA of -45.67, which highlight its struggles in generating positive earnings. Additionally, the Return on Equity (ROE) stands at -21.39%, further emphasizing the company's financial difficulties.
In comparison to its peer, John B. Sanfilippo & Son, Inc., which has a P/E ratio of 13.33 and an EV to EBITDA of 7.53, Westrock Coffee Co. appears to be lagging significantly. The company's recent stock performance has also been poor, with a year-to-date return of -7.48%, contrasting sharply with the S&P 500's positive return of 2.44% during the same period. Overall, these factors suggest that Westrock Coffee Co. is overvalued in the current market environment.