Is Kirkland's, Inc. overvalued or undervalued?

As of 30 August 2022, Kirkland's, Inc. has moved from a fair valuation to a risky grade, indicating a significant deterioration in its financial health. The company is currently considered overvalued, given its negative price-to-earnings ratio and troubling ratios such as a price-to-book value of -1.56 and an EV to EBITDA of -33.34. These figures suggest that the company is struggling to generate positive returns and is not effectively utilizing its capital.
In comparison to its peers, Kirkland's, Inc. shows a P/E ratio of -1.1044, while Barnes & Noble Education, Inc. has a P/E of -72.3519, and RumbleOn, Inc. stands at -2.0071, all indicating a challenging environment for these companies. The stark contrast with Tandy Leather Factory, Inc., which is rated attractive with a P/E of 2.3171, highlights the struggles faced by Kirkland's. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date decline of 35.19% compared to a modest 2.44% gain in the index.