Perma-Pipe International Holdings

PPIH

Construction · Industrials

Price

$27.61

+0.72 (+2.68%)

Market Cap

$224.4M

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Apr 30, 2026

How the score breaks down

Quality

Good

Growth

Good

Cash Flow

Good

Stability

Strong

Valuation

Strong

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Share count falling — buybacks

−3.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 8.4M (2022) → 8.1M (2026)

Winston Score History

The full picture

Perma-Pipe International Holdings makes pre-insulated piping systems used to move hot and cold fluids underground. Its products are used in district energy systems, oil and gas pipelines, and industrial facilities. Customers include utilities, municipalities, and energy companies that need to transport steam, chilled water, or other fluids over long distances without losing temperature.

The company earns revenue by selling engineered piping systems and related services, with projects often customized to specific site requirements. Perma-Pipe operates primarily in North America and the Middle East, giving it geographic diversification across different energy infrastructure markets. Its moat comes from specialized engineering know-how and long-standing relationships with contractors and project developers, which makes it harder for generic pipe suppliers to compete directly. The main growth driver is increased investment in district energy and urban heating and cooling networks, though the business is exposed to project delays and the lumpy nature of large construction contracts, which can make revenue unpredictable from quarter to quarter.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+7.5% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-64.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

5.8%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$30M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Perma-Pipe International Holdings is growing revenue at 8% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

29.1%

Modest — 29.1% gross margin

Profit after running costs

Operating Margin

9.2%

Modest — 9.2% operating margin

Return on the money invested

ROCE

21.7%

Exceptional — 21.7% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+25.5%

Fast-growing sales (+25.5% YoY)

Profit growth

EPS YoY

+10.3%

Earnings growing (+10.3% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

105%

Turns 105% of profit into real cash

Spare cash per sale

FCF Margin

1.8%

Thin free cash flow (1.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.31

Conservative — low debt load (0.31)

Covers its interest

Interest Cover

12.96x

Comfortably covers interest (13.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

16.1x

Fair value — P/E 16.1

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+5.7

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (16.1 → 10.3)

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Dividends

Not applicable for this business.

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