Perma-Pipe: Riding The Infrastructure Wave, Anchored To Oil

Core Viewpoint - Perma-Pipe International Holdings is a niche player in the international energy infrastructure sector, focusing on piping and leak-detection systems across various markets, including oil and gas [1] Financial Performance - The company reported a significant increase in profit margin and a record-high backlog of $167.5 million, up from $138.1 million at the previous year-end [2] - The current share price of around $13 is considered a fair valuation, leading to a HOLD rating for the stock [2] Oil Price Exposure - Perma-Pipe's stock is closely correlated with Brent crude oil prices, as demand is linked to the Middle East energy markets [3] - Oil prices experienced volatility, exceeding $100 per barrel in 2022 due to geopolitical tensions, before settling at nearly $86 per barrel by year-end [4] - In 2023, oil prices fluctuated between the low $70s and nearly $100, influenced by supply concerns and OPEC+ cuts, before declining again [5]