Perma-Pipe International Holdings, Inc. (PPIH) stock analysis

P/E above its 5-year median

Perma-Pipe International's P/E of 15.2 is above its own 5-year median of 13.7.

P/E below the industry

Perma-Pipe International's P/E of 15.2 is below the General Industrial Machinery and Equipment median of 26.9.

EV/EBITDA above its 5-year median

Perma-Pipe International's EV/EBITDA of 7.2 is above its 5-year median of 5.8.

P/B below the industry

Perma-Pipe International's price-to-book of 2.54 is below the General Industrial Machinery and Equipment median of 2.84.

Trading below fair value

The share price of $28.97 is below our fair value estimate of $36.89.

Margin of safety over 20%

The price is 21.5% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 13.9% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 42.0% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 24.8% over the last twelve months; the General Industrial Machinery and Equipment median is 12.4%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 31.1% over the last twelve months, against 33.3% a year earlier.

Return on equity under 15%

Return on equity was 17.9% over the last twelve months and averaged 14.6% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 25.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Perma-Pipe International's return on equity of 17.9% is above the General Industrial Machinery and Equipment median of 9.9%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 6.9% over the last twelve months, against a 5-year average of 5.8%.

Net margin below the industry

Perma-Pipe International's net margin of 6.9% is below the General Industrial Machinery and Equipment median of 8.0%.

Low debt

Debt is 38.6% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 40.2% five years ago to 38.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 66.1% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.19 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.06; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Perma-Pipe International has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.