Perma-Pipe International HoldingsSTU:MF3 +0.85%77 Operating Margin % is 9.23% as of Apr. 2026, which is 91% above its 10-year median of 4.84. GuruFocus rates STU:MF3 with a GF Score™ of 77/100 and a GF Value™ of €15.63 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,767 Construction companies, Perma-Pipe International Holdings ranks better than 77.82% on this metric.
Perma-Pipe International Holdings (STU:MF3) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Perma-Pipe International Holdings Operating Margin % Related Terms
Perma-Pipe International Holdings Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Perma-Pipe International Holdings Operating Margin % Chart
STU:MF3 vs AIRJ, JELD, BURCA: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Perma-Pipe International Holdings's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Perma-Pipe International Holdings Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Perma-Pipe International Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Perma-Pipe International Holdings's Operating Margin % falls into.
Perma-Pipe International Holdings Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Perma-Pipe International Holdings (STU:MF3) has a Operating Margin % of 9.23% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Perma-Pipe International Holdings and its competitors. This is 91% above median its historical median of 4.84. According to the industry distribution chart, Perma-Pipe International Holdings ranks #392 out of 1767 companies in the Construction industry, placing it in the top 22.2%.
Is Perma-Pipe International Holdings' Operating Margin % too high?
Perma-Pipe International Holdings' current Operating Margin % of 9.23% is 91% above median its 10-year median of 4.84. The Construction industry median Operating Margin % is 5.89. Perma-Pipe International Holdings' value of 9.23% is 56.7% above this industry median. Based on the distribution chart, Perma-Pipe International Holdings ranks #392 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Perma-Pipe International Holdings has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Perma-Pipe International Holdings' Operating Margin % compare to AIRJ and JELD?
According to the Construction industry distribution chart, Perma-Pipe International Holdings ranks #392 out of 1767 companies for Operating Margin %. This places Perma-Pipe International Holdings in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Perma-Pipe International Holdings' value of 9.23% is 56.7% above this benchmark. While the company's 10-year median is 4.84 vs. the industry median of 5.89, Perma-Pipe International Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Perma-Pipe International Holdings's current Operating Margin % of 9.23% is 56.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Perma-Pipe International Holdings and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perma-Pipe International Holdings's current Operating Margin % is 9.23%, which is 91% above median its own 10-year median of 4.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perma-Pipe International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Perma-Pipe International Holdings (STU:MF3) is currently considered Significantly Overvalued. The stock's GF Value™ is €15.63, compared to a current price of €23.80 — trading 52.3% above its estimated fair value. The current Operating Margin % is 9.23%, which is 91% above median its 10-year median of 4.84 and 56.7% above the Construction industry median of 5.89. Perma-Pipe International Holdings' overall GF Score™ is 77/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Perma-Pipe International Holdings (STU:MF3), the current Operating Margin % is 9.23% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Perma-Pipe International Holdings (STU:MF3) Overvalued in 2026?
Based on GuruFocus' analysis, Perma-Pipe International Holdings stock appears to be overvalued.
The current stock price of €23.80 is trading 52.3% above its estimated GF Value™ of €15.63.
GuruFocus considers Perma-Pipe International Holdings to be Significantly Overvalued.
Key valuation signals for STU:MF3:
Operating Margin %: 9.23% (91% above median its 10-year median of 4.84)
GF Value™: €15.63 vs. price of €23.80 (52.3% above fair value)
Industry Position: 56.7% above the Construction median (#392 of 1767)
No single metric tells the full story. See the STU:MF3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perma-Pipe International Holdings Business Description
Perma-Pipe International Holdings Inc is engaged in the manufacture and sale of products in Piping Systems. The company engineers, designs, manufactures, and sells specialty piping systems and leak detection systems. Specialty piping systems of the company include insulated and jacketed district heating and cooling piping systems for efficient energy distribution from central energy plants to multiple locations, primary and secondary containment piping systems for transporting chemicals, hazardous fluids, and petroleum products, the coating and insulation of oil and gas gathering and transmission pipelines, and liquid and powder based anti-corrosion coatings applied both to the external and internal surfaces of steel pipe, including shapes such as bends, reducers, tees, and other fittings.
77GF Score
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