Is Perma-Pipe International Holdings, Inc. (PPIH) Halal?

NASDAQ Industrials United States $237M
✓ HALAL
Confidence: 95/100
Perma-Pipe International Holdings, Inc. (PPIH) is Halal under 4 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 14.4% against the AAOIFI threshold of 30%, Perma-Pipe International Holdings, Inc. comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Building Products & Equipment), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from January 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 14.4%
/ 30%
6.8%
/ 30%
28.1%
/ 30%
0.18%
/ 5%
✓ HALAL
DJIM 14.4%
/ 33%
6.8%
/ 33%
28.1%
/ 33%
0.18%
/ 5%
✓ HALAL
MSCI 20.1%
/ 33%
9.5%
/ 33%
39.3%
/ 33%
0.18%
/ 5%
✗ NOT HALAL
S&P 14.4%
/ 33%
6.8%
/ 33%
28.1%
/ 33%
0.18%
/ 5%
✓ HALAL
FTSE 20.1%
/ 33%
9.5%
/ 33%
39.3%
/ 50%
0.18%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
17.2
EPS
$1.71
P/B Ratio
2.8
EV/EBITDA
7.9
EV: $267M
Revenue
$158M
Growth: 47.1%
Beta
0.5
Low volatility
Current Ratio
1.8

Profitability

Gross Margin 33.5%
Operating Margin 18.6%
Net Margin 6.9%
Return on Equity (ROE) 20.6%
Return on Assets (ROA) 9.9%

Cash Flow & Balance Sheet

Operating Cash Flow$14M
Free Cash Flow$11M
Total Debt$33M
Debt-to-Equity42.8
Current Ratio1.8
Total Assets$165M

Price & Trading

Last Close$29.85
50-Day MA$30.72
200-Day MA$27.51
Avg Volume96K
Beta0.5
52-Week Range
$8.81
$36.48

About Perma-Pipe International Holdings, Inc. (PPIH)

CEO
Mr. Saleh Sagr
Employees
750
Sector
Industrials
Industry
Building Products & Equipment
Country
United States
Exchange
NASDAQ
Market Cap
$237M
Currency
USD

Perma-Pipe International Holdings, Inc., together with its subsidiaries, designs, engineers, manufactures, and sells specialty piping and leak detection systems in the United States, Canada, the Middle East, North Africa, Europe, India, and internationally. The company offers insulated and jacketed district heating and cooling piping systems for energy distribution from central energy plants to various locations; and primary and secondary containment piping systems for transporting chemicals, hazardous fluids, and petroleum products, as well as engages in the coating and insulation of oil and gas gathering and transmission pipelines. It also provides liquid and powder based anti-corrosion coatings for external and internal surfaces of steel pipe, including bends, reducers, tees, and other spools/fittings used in pipelines for the transportation of oil and gas products and potable water. The company was formerly known as MFRI, Inc. and changed its name to Perma-Pipe International Holdings, Inc. in March 2017. Perma-Pipe International Holdings, Inc. was incorporated in 1993 and is headquartered in The Woodlands, Texas.

Purification Calculator

As a halal stock with 0.18% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Perma-Pipe International Holdings, Inc. (PPIH) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Perma-Pipe International Holdings, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Perma-Pipe International Holdings, Inc.'s debt ratio?

Perma-Pipe International Holdings, Inc.'s debt ratio is 14.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 20.1%.

Does Perma-Pipe International Holdings, Inc. require dividend purification?

Yes, Perma-Pipe International Holdings, Inc. has an impermissible income ratio of 0.18%, which means 0.18% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Perma-Pipe International Holdings, Inc.'s key financial metrics?

Perma-Pipe International Holdings, Inc. has a market capitalization of $237M, trailing P/E ratio of 17.2, and revenue of $158M. The company maintains a gross margin of 33.5% and a net margin of 6.9%. Return on equity stands at 20.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.