Perma-Pipe International Holdings, Inc. (PPIH)
Valuation Overview•Is Perma-Pipe International Holdings, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 66/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is highly bullish, projecting significant upside with steady expected earnings growth. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
PPIH demonstrates adequate business quality with stable profitability. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company demonstrates solid revenue growth (13.9% 3Y CAGR) paired with highly explosive earnings growth (42.0% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 12.2%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $50.3M | +33.2% | +13.9% | +20.0% | +5.6% | |
| EBITDA | $4.6M | — | +32.4% | — | — | |
| Net Income | $1.8M | +89.6% | +42.0% | — | — | |
| EPS (Diluted) | $0.22 | +86.6% | +42.0% | — | — | |
| Free Cash Flow | $4.9M | -111.5% | +46.3% | +6.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 31.4% | 31.4% | 28.9% | 22.1% |
| Operating Margin | 12.2% | 11.9% | 9.9% | 2.1% |
| Net Margin | 6.5% | 6.9% | 5.8% | 0.0% |
| FCF Margin | 1.8% | 2.9% | -0.1% | -0.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.48 | $0.22 | -54.2% | ||
| Q2'26 | $0.44 | $0.60 | +36.4% | ||
| Q4'25 | — | $0.77 | — | ||
| Q3'25 | — | $0.10 | — | ||
| Q2'25 | — | $0.61 | — | ||
| Q2'25 | — | $0.27 | — | ||
| Q4'24 | — | $0.31 | — | ||
| Q3'24 | — | $0.40 | — |
Total return is +24.6% (1Y), outperforming the benchmark by +3.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -10.3% | -17.6% | — |
| 1Y | +24.6% | +3.8% | — |
| 3YCAGR | +39.4% | +19.4% | — |
| 5YCAGR | +31.4% | +19.6% | — |
| 10YCAGR | +13.9% | 0.0% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Perma-Pipe International Holdings, Inc. (PPIH) valuation, health, and returns.
Based on peer relative multiples, Perma-Pipe International Holdings, Inc. appears Slightly cheap versus peers compared to industry peers.
Perma-Pipe International Holdings, Inc. has multiple valuation anchors: Peer Relative Fair Value: $32.56 | Wall Street Analyst Target: $36.00 (implying +30.1% upside). A convergence of these signals offers higher conviction.
Perma-Pipe International Holdings, Inc. displays good financial health with a composite quality score of 66/100, supported by a Altman Z-Score of 3.1 (safe zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 18.8%.
Perma-Pipe International Holdings, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Perma-Pipe International Holdings, Inc.'s current growth trajectory is Accelerating. The company achieved +33.2% 1Y revenue growth and +86.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +13.9%.
Wall Street consensus is Buy based on 1 analysts, beating EPS expectations in 8% of recent quarters with a -1-quarter streak. The consensus price target represents a +30.1% change from current levels.
Investment risks for Perma-Pipe International Holdings, Inc. include: -31.4% 1-year max drawdown, high beta (2.05x market volatility). Volatility risk is characterized by a beta of 2.05x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.