Perma-Pipe International Holdings, Inc.

Small, low-leverage specialty-piping maker delivering top-quartile returns, strong interest coverage and near-doubled earnings.

Strengths

• ROE 18.8% (77th pct), ROA 7.8% (85th pct) and interest coverage 13.9x (87th pct)
• Net income +90% (80th pct); minimal debt (D/E 0.05) and very long cash runway

Risks

• Customer concentration (one customer = 23% of AR, 12% of sales) and a long-aged $1.2M Middle East receivable
• Project-based, cyclical demand tied to oil/gas and government spending; backlog down to $121.6M
• Slightly negative FCF and reliance on annually renewed foreign credit lines

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Cash burnNegative free cash flow (-1.3M)
• Customer concentration~23% of revenue from one customer/distributor — As of January 31, 2026, one customer accounted for approximately 23% of the Company’s total accounts receivable