NasdaqGM:PPIH

Stock Analysis Report

Perma-Pipe International Holdings

Executive Summary

Perma-Pipe International Holdings, Inc., together with its subsidiaries, engineers, designs, manufactures, and sells specialty piping and leak detection systems.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Perma-Pipe International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PPIH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

PPIH

-0.7%

US Machinery

0.9%

US Market


1 Year Return

-1.0%

PPIH

17.8%

US Machinery

16.8%

US Market

Return vs Industry: PPIH underperformed the US Machinery industry which returned 17.8% over the past year.

Return vs Market: PPIH underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

PPIHIndustryMarket
7 Day-2.0%-0.7%0.9%
30 Day-0.8%6.1%4.5%
90 Day7.7%14.0%6.2%
1 Year-1.0%-1.0%20.0%17.8%19.4%16.8%
3 Year7.3%7.3%44.3%35.2%47.5%38.0%
5 Year4.0%4.0%57.2%38.1%62.0%44.1%

Price Volatility Vs. Market

How volatile is Perma-Pipe International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Perma-Pipe International Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPIH ($9.02) is trading below our estimate of fair value ($56.67)

Significantly Below Fair Value: PPIH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PPIH is poor value based on its PE Ratio (23.1x) compared to the Machinery industry average (22.3x).

PE vs Market: PPIH is poor value based on its PE Ratio (23.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PPIH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PPIH is good value based on its PB Ratio (1.3x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

How is Perma-Pipe International Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.3%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Perma-Pipe International Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Perma-Pipe International Holdings performed over the past 5 years?

-27.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPIH has high quality earnings.

Growing Profit Margin: PPIH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PPIH has become profitable over the past 5 years, growing earnings by -27.6% per year.

Accelerating Growth: PPIH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PPIH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (13.5%).


Return on Equity

High ROE: PPIH's Return on Equity (5.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Perma-Pipe International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PPIH's short term assets ($64.1M) exceeds its short term liabilities ($35.6M)

Long Term Liabilities: PPIH's short term assets ($64.1M) exceeds its long term liabilities (23.6M)


Debt to Equity History and Analysis

Debt Level: PPIH's debt to equity ratio (25.8%) is considered satisfactory.

Reducing Debt: PPIH's debt to equity ratio has reduced from 45.2% to 25.8% over the past 5 years.

Debt Coverage: PPIH's debt is well covered by operating cash flow (52.4%).

Interest Coverage: PPIH's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet

Inventory Level: PPIH has a high level of physical assets or inventory.

Debt Coverage by Assets: PPIH's debt is covered by short term assets (assets are 4.5x debt).


Next Steps

Dividend

What is Perma-Pipe International Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PPIH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PPIH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PPIH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PPIH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PPIH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Perma-Pipe International Holdings's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

David Mansfield (59yo)

3yrs

Tenure

US$889,686

Compensation

Mr. David J. Mansfield has been the President and Chief Executive Officer of Perma-Pipe International Holdings, Inc. since November 8, 2016. He has been the Chief Executive Officer and President of Perma-P ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD889.69K) is above average for companies of similar size in the US market ($USD505.35K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.0yrs

Average Tenure

62yo

Average Age

Experienced Management: PPIH's management team is considered experienced (2 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

57yo

Average Age

Experienced Board: PPIH's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$67,75607 Jan 19
Mark Zorko
EntityIndividual
Shares7,983
Max PriceUS$8.75

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • John Love

    General Manager of Cartridge Filter Products

    • Tenure: 0yrs
  • Avin Gidwani

    President of PPME

    • Tenure: 0yrs
  • David Mansfield (59yo)

    President

    • Tenure: 3yrs
    • Compensation: US$889.69k
  • Wayne Bosch (62yo)

    VP & Chief Human Resources Officer

    • Tenure: 5.9yrs
    • Compensation: US$330.01k
  • Grant Dewbre

    Senior Vice President of MENA

    • Tenure: 2yrs
  • D. Norwood (63yo)

    VP, CFO & Secretary

    • Tenure: 1yrs
  • Scott James

    Senior Vice President of Americas

    • Tenure: 1.3yrs
  • Farzana Moinuddin

    Corporate Controller

    • Tenure: 0yrs

Board Members

  • David Barrie (67yo)

    Independent Chairman of the Board

    • Tenure: 4.2yrs
    • Compensation: US$145.00k
  • Jerry Walker (55yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$117.76k
  • David Mansfield (59yo)

    President

    • Tenure: 3yrs
    • Compensation: US$889.69k
  • David Brown (57yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$120.26k
  • Cindy Boiter (45yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$1.89k

Company Information

Perma-Pipe International Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Perma-Pipe International Holdings, Inc.
  • Ticker: PPIH
  • Exchange: NasdaqGM
  • Founded: 1989
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$73.248m
  • Shares outstanding: 8.03m
  • Website: https://www.permapipe.com

Number of Employees


Location

  • Perma-Pipe International Holdings, Inc.
  • 6410 West Howard Street
  • Niles
  • Illinois
  • 60714
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPIHNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDDec 1989

Biography

Perma-Pipe International Holdings, Inc., together with its subsidiaries, engineers, designs, manufactures, and sells specialty piping and leak detection systems. The company offers insulated and jacketed d ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 23:40
End of Day Share Price2019/11/19 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.