Perma-Pipe International experiencing rapid sales growth and potential for future expansion

From Yahoo Finance: 2025-06-24 10:38:00

In Monday trading, 9 new stocks entered Barchart’s Top 100 Stocks to Buy list, including Perma-Pipe International (PPIH), a Texas-based manufacturer of high-performance pipe systems for district heating and cooling, with a 36.2% sales growth in Q1 2025, now ranked 57th. Climate change impacts cost the global economy over $2 trillion, benefiting businesses like Perma-Pipe.

Perma-Pipe operates in a competitive market but is growing rapidly, with a hybrid sales model and facilities in multiple countries. The company went public in 1994 and has seen its revenues grow from $105 million to $171 million in the past four years, presenting opportunities for growth due to climate change.

Despite a 161% stock price increase in the past year, Perma-Pipe’s future earnings projections may be overly optimistic, with a significant backlog but uncertain revenue growth. With a forward P/E ratio of 10.7x, the stock may still offer value for investors willing to take on some risk.

For those willing to wait, Perma-Pipe’s momentum could continue into the future, potentially leading to mid-cap status over the next 3-5 years. The company’s growth prospects and financial performance suggest potential for long-term investors to benefit.

Read more: Does This Small Cap Have What It Takes to Become a Mid Cap?