Perma-Pipe International Holdings, Inc.
Perma-Pipe International Holdings, Inc. Fundamental Analysis
Perma-Pipe International Holdings, Inc. (PPIH) shows moderate financial fundamentals with a PE ratio of 19.56, profit margin of 6.91%, and ROE of 17.57%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 5.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PPIH's fundamental strength across five key dimensions:
Efficiency Score
WeakPPIH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPPIH trades at attractive valuation levels.
Growth Score
ModeratePPIH shows steady but slowing expansion.
Financial Health Score
ExcellentPPIH maintains a strong and stable balance sheet.
Profitability Score
ModeratePPIH maintains healthy but balanced margins.
Key Financial Metrics
Is PPIH Expensive or Cheap?
P/E Ratio
PPIH trades at 19.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PPIH's PEG of 0.52 indicates potential undervaluation.
Price to Book
The market values Perma-Pipe International Holdings, Inc. at 3.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.95 times EBITDA. This is generally considered low.
How Well Does PPIH Make Money?
Net Profit Margin
For every $100 in sales, Perma-Pipe International Holdings, Inc. keeps $6.91 as profit after all expenses.
Operating Margin
Core operations generate 13.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.57 in profit for every $100 of shareholder equity.
ROA
Perma-Pipe International Holdings, Inc. generates $6.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Perma-Pipe International Holdings, Inc. produces operating cash flow of $21.99M, showing steady but balanced cash generation.
Free Cash Flow
Perma-Pipe International Holdings, Inc. produces free cash flow of $12.27M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.52 in free cash annually.
FCF Yield
PPIH converts 4.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How PPIH Stacks Against Its Sector Peers
| Metric | PPIH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.56 | 26.49 | Better (Cheaper) |
| ROE | 17.57% | 1307.00% | Weak |
| Net Margin | 6.91% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.50 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.76 | 10.48 | Neutral |
| ROA | 6.40% | -1549793.00% (disorted) | Weak |
PPIH outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Perma-Pipe International Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.58%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
152.24%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
241.95%
Industry Style: Cyclical, Value, Infrastructure
High Growth