Perma-Pipe International Holdings (PPIH) AI Stock Analysis

• Market Cap: $208.02M
• Dividend Yield: N/A
• Average Volume (3M): 79.92K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.15
• 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: 80,383
• 30 Day Avg. Volume: 79,921
• 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: 1.05
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: 8.27
• 1Y Price Target: $29.00
• Price Target Upside: 6.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $25.00 ▼(-8.22% Downside)

The overall stock score is primarily influenced by strong financial performance, despite liquidity challenges. Technical analysis indicates bearish momentum, which negatively impacts the score. Valuation is moderate, but the lack of a dividend yield reduces appeal for income investors.

Positive Factors

Revenue Growth

The company's robust revenue growth of 14.9% indicates strong market demand and effective business strategies, supporting long-term expansion.

Market Position

As a leader in engineered piping systems, PPIH benefits from established expertise and reputation, enhancing its competitive edge and market share.

Financial Stability

Low leverage enhances financial stability, providing flexibility for strategic investments and resilience against economic fluctuations.

Negative Factors

Declining Cash Flow

Decreasing cash flow growth can limit the company's ability to fund operations and investments, posing a risk to long-term financial health.

Cash Conversion Efficiency

Limited cash conversion efficiency indicates potential challenges in converting profits into cash, affecting liquidity and operational flexibility.

Earnings Growth

Negative EPS growth reflects challenges in maintaining profitability, which may impact investor confidence and future earnings potential.

Perma-Pipe International Holdings Business Overview & Revenue Model

Company Description

Perma-Pipe International Holdings, Inc. (PPIH) is a leading provider of engineered piping systems and solutions for the energy, industrial, and commercial markets. The company specializes in the design, manufacturing, and installation of pre-insulated piping systems used for district heating and cooling, as well as for the transportation of fluids in various applications. PPIH operates in multiple sectors, including oil and gas, chemical processing, and water management, offering a range of products from insulated pipe systems to monitoring and leak detection technologies.

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 shows strong revenue growth and profitability, supported by a healthy balance sheet with low leverage. However, declining free cash flow growth and moderate cash conversion efficiency highlight potential liquidity challenges.

Income Statement

Perma-Pipe International Holdings has demonstrated solid revenue growth with a 6.08% increase in TTM, supported by a strong gross profit margin of 33.34%. The net profit margin of 5.55% and EBIT margin of 12.43% indicate healthy profitability. However, the EBITDA margin of 14.53% suggests room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.35 in TTM reflects a manageable level of leverage, enhancing financial stability. Return on equity at 13.34% is commendable, indicating effective use of equity capital. However, the equity ratio is not available, which limits a full assessment of asset financing.

Cash Flow

The cash flow statement shows a significant decline in free cash flow growth by 55.39% in TTM, raising concerns about cash generation. The operating cash flow to net income ratio of 0.15 suggests limited cash conversion efficiency. The free cash flow to net income ratio of 0.48 indicates moderate cash retention from profits.

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	16.15M	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	29.22M	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: Positive
• Last Price: 27.24
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPIH, the sentiment is Positive. The current price of 27.24 is above the 20-day moving average (MA) of 25.92, above the 50-day MA of 25.46, and above the 200-day MA of 20.37, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 74.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPIH.

Perma-Pipe International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BXC	62 Neutral	$503.38M	18.87	2.20%	―	-0.19%	-50.51%
PPIH	57 Neutral	$208.02M	20.65	13.51%	―	14.90%	-34.75%
SWIM	53 Neutral	$834.09M	―	-2.68%	―	4.12%	-198.38%
AEHL	48 Neutral	$6.02M	-0.04	―	―	36.37%	80.95%
ASPN	43 Neutral	$266.12M	―	-75.06%	―	-14.74%	-20086.56%
JELD	38 Underperform	$228.10M	―	-155.46%	―	-15.28%	-350.51%