Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH)

Sector: Industrials Industry: Building Products & Equipment CIK: 0000914122
Market Cap 258.31 Mn
P/B 3.61
P/E 18.61
P/S 1.29
ROIC (Qtr) 16.75
Div Yield % 0.00
Rev 1y % (Qtr) 47.12
Total Debt (Qtr) 42.80 Mn
Debt/Equity (Qtr) 0.60
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About

Investment thesis

Bull case

  • Strong operating cash flow of 21.99M provides robust 0.51x coverage of total debt 42.80M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 214.86M provides 5.02x coverage of total debt 42.80M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 21.99M provides exceptional 12.43x coverage of interest expenses 1.77M, showing strong debt service capability.
  • Tangible assets of 214.86M provide exceptional 122.85x coverage of deferred revenue 1.75M, showing strong service capability backing.
  • Operating cash flow of 21.99M provides strong 12.58x coverage of deferred revenue 1.75M, indicating service delivery capability.

Bear case

  • Operating cash flow of 21.99M barely covers its investment activities of (9.70M), with a coverage ratio of -2.27, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • High receivables of 89.17M relative to inventory of 19.14M (4.66 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 21.99M is outpaced by equity issuance of (510000) (-43.13 ratio), indicating concerning reliance on equity markets for funding operations.
  • Retained earnings of 32.22M provide limited buffer against comprehensive income items of (7.85M), which is -4.11x, indicating elevated exposure to market risks.
  • Operating cash flow of 21.99M shows concerning coverage of minority interest expenses of 4.72M, which is 4.66x, suggesting complex corporate structure risks.

Consolidation Items Breakdown of Revenue (2025)

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Building Products & Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TT Trane Technologies plc 104.89 Bn 35.94 4.92 4.62 Bn
2 JCI Johnson Controls International plc 91.64 Bn 26.98 3.82 9.71 Bn
3 CARR CARRIER GLOBAL Corp 56.66 Bn 38.18 2.61 12.25 Bn
4 LII Lennox International Inc 19.91 Bn 24.71 3.83 1.77 Bn
5 CSL Carlisle Companies Inc 17.50 Bn 23.63 3.49 2.88 Bn
6 MAS Masco Corp /De/ 15.94 Bn 19.68 2.11 3.17 Bn
7 OC Owens Corning 13.83 Bn 13.90 1.63 5.61 Bn
8 WMS Advanced Drainage Systems, Inc. 13.26 Bn 28.18 4.44 1.45 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.31 2.00
EV to Cash from Ops. EV/CFO 12.90 13.48
EV to Debt EV to Debt 6.63 10.94
EV to EBIT EV/EBIT 12.13 24.16
EV to EBITDA EV/EBITDA 8.94 -11.14
EV to Free Cash Flow [EV/FCF] EV/FCF 23.07 46.78
EV to Market Cap EV to Market Cap 1.10 1.12
EV to Revenue EV/Rev 1.41 2.81
Price to Book Value [P/B] P/B 3.61 4.24
Price to Earnings [P/E] P/E 18.61 47.40
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.80
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 11.22
Dividend per Basic Share Div per Share (Qtr) 0.00 0.71
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.90
Interest Coverage Int. cover (Qtr) 13.22 111.58
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -117.76 -24.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 94.55 61.26
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.67
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -17.80 -186.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 37.05 -57.93
EBIT Growth (1y) % EBIT 1y % (Qtr) 56.54 -102.26
EBT Growth (1y) % EBT 1y % (Qtr) 66.64 -299.15
EPS Growth (1y) % EPS 1y % (Qtr) -12.63 -598.34
FCF Growth (1y) % FCF 1y % (Qtr) 16.36 89.70
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 34.35 -3.62
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.93 0.88
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.13
Cash Ratio Cash Ratio (Qtr) 0.33 1.57
Current Ratio Curr Ratio (Qtr) 1.76 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 0.60 0.79
Interest Cover Ratio Int Coverage (Qtr) 13.22 111.58
Times Interest Earned Times Interest Earned (Qtr) 13.22 111.58
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 13.60 3.54
EBIT Margin % EBIT Margin % (Qtr) 11.65 1.23
EBT Margin % EBT Margin % (Qtr) 10.77 -1.76
Gross Margin % Gross Margin % (Qtr) 33.50 28.65
Net Profit Margin % Net Margin % (Qtr) 6.90 -3.80