2024-03-27 17:33:42 ET
Summary
- Northwest Pipe's 2023 revenue, gross profit margin, and net income per diluted share fell given weaker demand and a smaller bidding year for the SPP segment.
- Management anticipates a stronger 2024 for the Precast segment and a larger bidding year for the SPP segment.
- I think the bidding years for the SPP segment could increase as lower energy prices could increase the number of water desalination plants and subsequent demand for water transmission systems.
- Given a pretty attractive forward PE ratio of 12.28 for 2025 and a decent balance sheet, I rate Northwest Pipe a 'Buy' and I would own it in a diversified portfolio.
Northwest Pipe Company ( NWPX ) is a leading manufacturer of water related infrastructure products including engineered steel pressure pipe and precast and reinforced concrete products.
Northwest Pipe's products serve markets including water transmission and infrastructure and water and wastewater plant piping....
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Northwest Pipe: Larger SPP Bidding Year Expected