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Investor Insights

This summary was created by AI, based on 23 opinions in the last 12 months.

Park Lawn Corp (PLC-T) has had a rollercoaster ride on the TSX, with varying opinions from different experts. While some see it as a recession-proof business with great potential for long-term growth, others have concerns about its financials and acquisition strategy. There is consensus on its defensive nature and demographic tailwinds, but opinions differ on its current valuation and management decisions. Overall, it appears to be an interesting investment opportunity with both positives and negatives to consider.

Consensus
Mixed
Valuation
Fair Value
BUY
Park Lawn Corp

Cut in half since added to the TSX. Pandemic death rates have normalized now. Management team's focused on increasing sales and margins, accretive acquisitions. Seasoned management team. Sold some low-margin assets, paid down debt, balance sheet in good shape. Good buy here. Demographic tailwinds.

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TOP PICK
Park Lawn Corp

Recession-proof with high barriers to entry. Great managers. Revenues surged from the higher death rates during Covid, and they entered the TSX. But the stock then plunged given rough YOY comps, investors got nervous over an acquisition, and they got kicked out of the TSX. Now, it trades cheaply at 8x EBITDA and are buying back shares. They just sold a lower-margin price at a good price, so margins will grow. Expect more acquisitions.

(Analysts’ price target is $23.75)
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DON'T BUY
Park Lawn Corp

He likes the business but not the stock, Share counts have gone way up so the financials per share are not great. There are better opportunities.

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DON'T BUY
Park Lawn Corp

Has traded stock in the past. In a "down trend" right now. Does not own shares currently. Wait to buy once the "down trend" has stopped (share price starts to rise). 

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BUY ON WEAKNESS
Park Lawn Corp

Defensive business that is a good long term hold. Nature of fatalities means business is not going away. Would recommend holding. Scores 8/10 fundamentally. Believes 50% upside if bought at lows. 

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SELL
Park Lawn Corp
Take a tax loss, or hang on?

Pandemic pulled a lot of services forward, shares got ahead of themselves. Grows by acquisition, and M&A has slowed due to interest rates. She looks for organic growth in her companies.

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DON'T BUY
Park Lawn Corp

They grow by acquisition, because funeral homes are a very fragmented business. However, high interest rates make those buys expensive.

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HOLD
Park Lawn Corp
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $0.3256 beat estimates of $0.3065 and revenues of $117.38M beat estimates of $113.08M. Management is overall pleased with its results given the decrease in call volume due to a declining death rate. It continues to gain market share and sales grew by 8.2%, driven mostly by acquired operations. PLC plans on divesting certain legacy assets to Everstory Acquisition Portfolio, a transaction valued at $70M. This divestiture is expected to reduce PLC's leverage ratio and provide cash for deployment into high-growth markets. Its balance sheet slightly expanded for the quarter, and sales grew, but its margins declined due to increasing interest expenses and cost of sales. It has made some progress on its debt load, but its net debt/EBITDA ratio remains high at 3.9X. We feel it is a well-run business, and in a better market backdrop it will perform well. Its high debt load is certainly acting as a drag on its financial performance, and we feel a recovery is likely once interest rates peak or decline.
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BUY
Park Lawn Corp

Recent earnings very favorable. Turning the business around. Good time to buy at current share price. Selling legacy assets. Demand for healthcare not going away. Good for long term investors.

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BUY ON WEAKNESS
Park Lawn Corp

Is a long term shareholder of the company. Will continue to own shares. Risk of economy faltering may put pressure on company. Higher interest rates not a major concern for company. Skilled at capital allocation. Good time to buy at current share price. 

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PAST TOP PICK
Park Lawn Corp
(A Top Pick Nov 07/22, Down 12%)

It has an excellent management team based in the U.S. and focusing on organic growth as well as M&A.. It has very good tailwinds with an aging population. Has high margins along with high barriers to entry. At 8 1/2X EBITDA it is at an all-time low and he is adding to his position/

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DON'T BUY
Park Lawn Corp

Growth through M&A. 
Organic growth not strong enough to justify investment.
Would not recommend buying. 

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BUY
Park Lawn Corp
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

PLC reported revenue of $85.3 million, up 12.4% year-over-year, missing estimates of $86.5 million. Adjusted EBITDA of $18.8 million rose 21% year-over-year but missed estimates of $19.7 million. EBITDA margin rose from 20.6% in the second quarter of 2022 to 22.1% in the recent quarter. Adjusted earnings per share of $0.22 came in line with estimates and rose 16.8% year-over-year. Mortality rates in the US are declining, or more normalizing after the rates during the pandemic years. The second quarter cyclically is the weaker quarter for the company. A competitor revised down 2023 guidance by 3% for EPS citing lower pre-need cemetery sales and higher borrowing costs. We don't think this quarter had any major takeaways and continue liking the name for the long-term. We would be fine starting a position. 
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PAST TOP PICK
Park Lawn Corp
(A Top Pick Jul 14/22, Down 27%)

Recession proof, high barriers to entry, strong demographic tailwinds. Pullback is a fantastic entry point. Trades at 16x earnings, a big discount to SCI. Possible joint venture with BAM to acquire the #3 US player. Any interest by Brookfield is an endorsement.

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BUY
Park Lawn Corp
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We continue to like PLC for its growth potential and it could accelerate its growth via more acquisitions. Analysts expect marginal sales and earnings growth for this year, but higher growth in future years. Its valuation has come down to reasonable levels, at a 15.9X forward earnings multiple. It generates positive free cash flows, issues a yield, and has recently been repurchasing shares. Its balance sheet has been growing over the years, its valuation is the cheapest it has been in over a decade, and we feel that these low price levels will not last forever. We continue to like the name at these prices. 
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Showing 1 to 15 of 85 entries

Park Lawn Corp(PLC-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 8

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 6

Total Signals / Votes : 15

Stockchase rating for Park Lawn Corp is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Park Lawn Corp(PLC-T) Frequently Asked Questions

What is Park Lawn Corp stock symbol?

Park Lawn Corp is a Canadian stock, trading under the symbol PLC-T on the Toronto Stock Exchange (PLC-CT). It is usually referred to as TSX:PLC or PLC-T

Is Park Lawn Corp a buy or a sell?

In the last year, 15 stock analysts published opinions about PLC-T. 8 analysts recommended to BUY the stock. 6 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Park Lawn Corp.

Is Park Lawn Corp a good investment or a top pick?

Park Lawn Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for Park Lawn Corp.

Why is Park Lawn Corp stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Park Lawn Corp worth watching?

15 stock analysts on Stockchase covered Park Lawn Corp In the last year. It is a trending stock that is worth watching.

What is Park Lawn Corp stock price?

On 2024-07-23, Park Lawn Corp (PLC-T) stock closed at a price of $26.41.