Perma-Pipe International Holdings (PPIH) AI Stock Analysis

• Market Cap: $185.84M
• Dividend Yield: N/A
• Average Volume (3M): 211.09K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.12
• Revenue Growth: 14.90%
• EPS Growth: -34.75%
• Country: US
• Employees: 750
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.10
• Shares Outstanding: 8,094,045
• 10 Day Avg. Volume: 391,251
• 30 Day Avg. Volume: 211,092
• PEG Ratio: -0.98
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 10.93
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: 8.27
• 1Y Price Target: $24.50
• Price Target Upside: 6.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: $23.50 ▲(2.35% Upside)

The overall stock score of 57 reflects a combination of strong financial performance and bearish technical indicators. While the company demonstrates solid revenue growth and profitability, the technical analysis suggests potential downside risk. The moderate valuation further tempers the overall outlook.

Perma-Pipe International Holdings Business Overview & Revenue Model

Company Description

Perma-Pipe International Holdings, Inc., together with its subsidiaries, engineers, designs, manufactures, and sells specialty piping and leak detection systems. It offers provides and jacketed district heating and cooling piping systems for energy distribution from central energy plants to various locations; and primary and secondary containment piping systems for transporting chemicals, hazardous fluids, and petroleum products, as well as engages in the coating and insulation of oil and gas gathering and transmission pipelines. The company also offers liquid and powder based anti-corrosion coatings for external and internal surfaces of steel pipe, including shapes like bends, reducers, tees, and other spools/fittings that is used in pipelines for the transportation of oil and gas products and potable water. It has operations in the United States, Canada, the Middle East, Europe, India, and internationally. The company was formerly known as MFRI, Inc. and changed its name to Perma-Pipe International Holdings, Inc. in March 2017. Perma-Pipe International Holdings, Inc. was incorporated in 1993 and is headquartered in Niles, Illinois.

How the Company Makes Money

PPIH generates revenue primarily through the sale of its engineered piping systems and related services. This includes the manufacturing and installation of pre-insulated piping products, which are critical for efficiency in heating and cooling applications in large buildings and industrial processes. The company also earns money through maintenance contracts and service agreements that support its installed systems. Key revenue streams include project-based contracts with large corporations and government entities, as well as recurring revenues from ongoing service and maintenance. Additionally, strategic partnerships with construction firms and energy companies enhance its market reach and contribute to its earnings, allowing PPIH to secure large-scale projects and leverage its technological expertise in the piping industry.

Perma-Pipe International Holdings Financial Statement Overview

Summary

Perma-Pipe International Holdings demonstrates strong financial performance with consistent revenue growth and improving profitability. The balance sheet is stable, though increasing liabilities may require attention. Strong cash flow generation supports the company's financial health.

Income Statement

Perma-Pipe International Holdings shows strong financial performance with consistent revenue growth and improving profitability. The TTM revenue is up by 7.8% compared to the previous year, with a notable increase in gross profit margin from 33.6% to 34.8%. The net profit margin for TTM stands at 7.3%, reflecting better cost management. EBIT and EBITDA margins have also improved, indicating operational efficiency.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.48, which is manageable within the construction industry. The equity ratio of 43.7% signifies a solid capital structure. However, the total liabilities have been increasing, which could pose a risk if not managed properly.

Cash Flow

The cash flow statements indicate strong cash generation, with free cash flow showing robust growth. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of earnings into cash. The free cash flow to net income ratio is also positive, indicating good cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	181.20M	158.38M	150.67M	142.57M	138.55M	84.69M
Gross Profit	60.40M	53.25M	41.46M	38.30M	32.53M	11.18M
EBITDA	26.34M	20.30M	15.99M	15.45M	13.57M	-2.17M
Net Income	10.05M	8.98M	10.47M	5.95M	6.06M	-7.64M
Balance Sheet
Total Assets	63.64M	165.24M	155.71M	122.97M	123.40M	102.69M
Cash, Cash Equivalents and Short-Term Investments	17.26M	15.72M	5.84M	5.77M	8.21M	7.17M
Total Debt	44.02M	33.25M	32.79M	29.38M	34.54M	27.61M
Total Liabilities	96.56M	82.14M	83.73M	65.18M	68.94M	53.38M
Stockholders Equity	80.20M	72.14M	65.71M	57.78M	54.46M	49.31M
Cash Flow
Free Cash Flow	4.76M	11.05M	3.63M	-8.22M	-4.84M	-1.80M
Operating Cash Flow	9.88M	13.93M	14.73M	-1.24M	-2.57M	165.00K
Investing Cash Flow	-5.09M	-2.85M	-11.10M	-6.38M	-2.25M	-1.96M
Financing Cash Flow	3.14M	-907.00K	-3.26M	4.54M	6.23M	-4.14M

Perma-Pipe International Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.96
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPIH, the sentiment is Negative. The current price of 22.96 is below the 20-day moving average (MA) of 27.29, below the 50-day MA of 26.52, and above the 200-day MA of 18.04, indicating a neutral trend. The MACD of -1.41 indicates Positive momentum. The RSI at 38.59 is Neutral, neither overbought nor oversold. The STOCH value of 19.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPIH.

Perma-Pipe International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWIM	72 Outperform	876.40M	-62.56	-4.61%	―	-0.11%	-213.56%
JBI	66 Neutral	1.39B	32.46	8.02%	―	-14.06%	-65.38%
PPIH	57 Neutral	$185.84M	18.44	13.51%	―	14.90%	-34.75%
ASPN	49 Neutral	584.76M	-1.86	-101.03%	―	11.18%	-3810800.00%
JELD	46 Neutral	432.99M	-1.22	-74.46%	―	-15.16%	-1232.39%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Perma-Pipe International Holdings Corporate Events

Perma-Pipe Appoints New Chairman After Annual Meeting

On June 25, 2025, Perma-Pipe International Holdings held its Annual Meeting where stockholders voted on several key proposals. Four directors were elected to serve until the 2026 Annual Meeting, with some directors tendering their resignations due to not receiving a majority of votes. Additionally, David J. Mansfield resigned from the Board. Over 94% of shares approved the compensation of the company’s executive officers, and over 86% voted for an annual advisory vote on executive compensation. PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the fiscal year ending January 31, 2026, with over 99% approval. Jon C. Biro was appointed as the new Chairman of the Board, succeeding Jerome T. Walker.