Perma-Pipe International Holdings (NasdaqGM:PPIH) - Share price, News & Analysis

PPIH fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

PPIH Stock Overview

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

Rewards

PE ratio (18.5x) is below the Machinery industry average (21.9x)

Became profitable this year

Risk Analysis

Does not have a meaningful market cap ($99M)

Perma-Pipe International Holdings Competitors

Mueller Water Products

NYSE:MWA

US$1.8b

Gorman-Rupp

NYSE:GRC

US$780.0m

Price History & Performance

Summary of all time highs, changes and price drops for Perma-Pipe International Holdings
Historical stock prices
Current Share Price	US$13.73
52 Week High	US$14.92
52 Week Low	US$6.28
Beta	0.091
1 Month Change	43.77%
3 Month Change	53.84%
1 Year Change	104.32%
3 Year Change	52.56%
5 Year Change	81.85%
Change since IPO	71.63%

Recent News & Updates

Apr 21

Returns On Capital Are Showing Encouraging Signs At Perma-Pipe International Holdings (NASDAQ:PPIH)

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

Shareholder Returns

	PPIH	US Machinery	US Market
7D	-1.0%	1.5%	0.5%
1Y	104.3%	-15.8%	-11.5%

Return vs Industry: PPIH exceeded the US Machinery industry which returned -13.9% over the past year.

Return vs Market: PPIH exceeded the US Market which returned -8.1% over the past year.

Price Volatility

Is PPIH's price volatile compared to industry and market?
PPIH volatility
PPIH Average Weekly Movement	6.1%
Machinery Industry Average Movement	5.7%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: PPIH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PPIH's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	608	David Mansfield	https://www.permapipe.com

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.

Perma-Pipe International Holdings Fundamentals Summary

How do Perma-Pipe International Holdings's earnings and revenue compare to its market cap?
PPIH fundamental statistics
Market Cap	US$98.50m
Earnings (TTM)	US$6.06m
Revenue (TTM)	US$138.55m

18.5x

P/E Ratio

0.8x

P/S Ratio

Is PPIH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPIH income statement (TTM)
Revenue	US$138.55m
Cost of Revenue	US$106.02m
Gross Profit	US$32.53m
Other Expenses	US$26.47m
Earnings	US$6.06m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.74
Gross Margin	23.48%
Net Profit Margin	4.38%
Debt/Equity Ratio	39.0%

How did PPIH perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

18.47x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate PPIH's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate PPIH's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: PPIH is good value based on its PE Ratio (18.5x) compared to the US Machinery industry average (21.9x).

PE vs Market: PPIH is poor value based on its PE Ratio (18.5x) compared to the US market (16x).

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 (2.1x) compared to the US Machinery industry average (2.2x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.6%

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.

Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

45.6%

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 45.6% 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 (24%).

Return on Equity

High ROE: PPIH's Return on Equity (11.1%) is considered low.

Financial Health

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

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PPIH's short term assets ($78.4M) exceed its short term liabilities ($38.4M).

Long Term Liabilities: PPIH's short term assets ($78.4M) exceed its long term liabilities ($30.5M).

Debt to Equity History and Analysis

Debt Level: PPIH's net debt to equity ratio (23.9%) is considered satisfactory.

Reducing Debt: PPIH's debt to equity ratio has increased from 19.8% to 39% over the past 5 years.

Debt Coverage: PPIH's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PPIH's interest payments on its debt are well covered by EBIT (9.8x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PPIH has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure

CEO

David Mansfield (61 yo)

5.5yrs

Tenure

US$1,239,249

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 ($USD1.24M) is above average for companies of similar size in the US market ($USD771.97K).

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

Leadership Team

Experienced Management: PPIH's management team is considered experienced (3.5 years average tenure).

Board Members

Experienced Board: PPIH's board of directors are considered experienced (6.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/01/31
Annual Earnings	2022/01/31