ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Perma-Pipe International Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was 7.94%.
As of today (2026-07-02), Perma-Pipe International Holdings's WACC % is 9.54%. Perma-Pipe International Holdings's ROIC % is 13.55% (calculated using TTM income statement data).
Perma-Pipe International Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Perma-Pipe International Holdings (STU:MF3) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Perma-Pipe International Holdings's WACC % is 9.54%. Perma-Pipe International Holdings's ROIC % is 13.55% (calculated using TTM income statement data).
Perma-Pipe International Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Perma-Pipe International Holdings ROIC % Related Terms
Perma-Pipe International Holdings ROIC % 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.
For the Building Products & Equipment subindustry, Perma-Pipe International Holdings's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Perma-Pipe International Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Perma-Pipe International Holdings's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Apr. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 ROIC % of 7.94% as of Apr. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Perma-Pipe International Holdings and its competitors.
Is Perma-Pipe International Holdings' ROIC % too high?
Perma-Pipe International Holdings' current ROIC % is 7.94%. The Construction industry median ROIC % is 4.64. Perma-Pipe International Holdings' value of 7.94% is 71.3% above this industry median. 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' ROIC % compare to JLHL and JELD?
Perma-Pipe International Holdings' ROIC % of 7.94% can be compared against companies in the Construction industry. The industry median ROIC % is 4.64. Perma-Pipe International Holdings' value of 7.94% is 71.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Construction company?
The median ROIC % among Construction companies is 4.64, based on 1,750 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Perma-Pipe International Holdings's current ROIC % of 7.94% is 71.3% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Perma-Pipe International Holdings and its competitors. For the Construction industry, the median ROIC % is 4.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perma-Pipe International Holdings's current ROIC % is 7.94%. 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 €15.72, compared to a current price of €22.80 — trading 45% above its estimated fair value. The current ROIC % is 7.94% and 71.3% above the Construction industry median of 4.64. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Perma-Pipe International Holdings (STU:MF3), the current ROIC % is 7.94% 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 €22.80 is trading 45% above its estimated GF Value™ of €15.72.
GuruFocus considers Perma-Pipe International Holdings to be Significantly Overvalued.
Key valuation signals for STU:MF3:
ROIC %: 7.94%
GF Value™: €15.72 vs. price of €22.80 (45% above fair value)
Industry Position: 71.3% above the Construction median
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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