Perma-Pipe International Holdings Inc. Common Stock (PPIH)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach a small industrial like Perma-Pipe with Graham's question first: what is protected on the downside? The company makes insulated and jacketed piping and leak-detection systems, a niche where engineering, certifications, and installed-base relationships can create switching costs. The numbers show a real business, not a story. In the fiscal year ended 2026-01-31, revenue was $210.9 million, net income $17.0 million, and diluted EPS $2.09, up from net income of $9.0 million and EPS $1.12 in the fiscal year ended 2025-01-31. In the latest filed quarter, fiscal Q2 2026 ended 2026-07-31, revenue was $59.6 million, net income $2.5 million, and diluted EPS $0.31, versus revenue of $47.9 million, net income of $851,000, and EPS $0.10 in fiscal Q2 2025 ended 2025-07-31. That is impressive growth, but the earlier fiscal Q3 2025 quarter ended 2025-10-31 earned $6.3 million, so results are lumpy. FairStock's Lynch category is FAST GROWER, based on 29.5% annual profit growth over four years and 11.1% revenue growth. At the 2026-10-13 close of $30.65, FairStock calculations show a P/E of 16.13, P/B of 2.69, ROE of 19.06%, ROCE of 8.08%, and FCF yield of 5.4%. Debt/equity is 0.48, the Piotroski F-score is 7/9, and the Altman Z-score is 2.24—decent, not fortress-like. The Graham Number is $22.09, implying a negative margin of safety of 38.75%, so the price is not cheap on assets or conservative earnings. A PEG of 0.08 and EV/EBITDA of 8.06 suggest growth is not fully reflected if it persists. I see a reasonably profitable, fast-growing niche manufacturer, but I would want the balance sheet and cash conversion to prove the cycle.

In plain English: Perma-Pipe makes specialty insulated pipes and leak-detection systems used to move heat, cooling, chemicals, and other fluids safely. The business looks reasonably strong: sales and profits have grown, and it generates cash, though profit margins can bounce around from quarter to quarter. At $30.65 a share, the price looks more than fair—perhaps a little rich against a conservative asset-based estimate—but it is not obviously expensive relative to current earnings.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-31) · fiscal Q1 2026 10-Q (period ended 2026-04-30) · fiscal Q3 2025 10-Q (period ended 2025-10-31) · fiscal Q2 2025 10-Q (period ended 2025-07-31) · FY2025 10-K (period ended 2026-01-31) · FY2024 10-K (period ended 2025-01-31) · FY2023 10-K (period ended 2024-01-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer