TSX:PLC

Stock Analysis Report

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Executive Summary

Park Lawn Corporation, together with its subsidiaries, provides deathcare products and services in Canada and the United States. More Details


Snowflake Analysis

Proven track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Park Lawn's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PLC is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PLC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-3.5%

PLC

-2.9%

CA Consumer Services

1.7%

CA Market


1 Year Return

-5.2%

PLC

-6.8%

CA Consumer Services

0.2%

CA Market

Return vs Industry: PLC exceeded the Canadian Consumer Services industry which returned -6.8% over the past year.

Return vs Market: PLC underperformed the Canadian Market which returned 0.2% over the past year.


Shareholder returns

PLCIndustryMarket
7 Day-3.5%-2.9%1.7%
30 Day-5.0%-5.0%7.0%
90 Day-3.1%-1.4%5.1%
1 Year-3.5%-5.2%-5.3%-6.8%3.9%0.2%
3 Year42.6%35.0%30.6%24.8%13.1%2.1%
5 Year160.2%123.2%92.9%73.4%46.5%24.1%

Long-Term Price Volatility Vs. Market

How volatile is Park Lawn's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Park Lawn undervalued compared to its fair value and its price relative to the market?

33.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PLC (CA$27.68) is trading below our estimate of fair value (CA$41.65)

Significantly Below Fair Value: PLC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PLC is poor value based on its PE Ratio (61.8x) compared to the XN Consumer Services industry average (23.9x).

PE vs Market: PLC is poor value based on its PE Ratio (61.8x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: PLC is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: PLC is overvalued based on its PB Ratio (1.5x) compared to the CA Consumer Services industry average (1.4x).


Next Steps

Future Growth

How is Park Lawn forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

51.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLC's forecast earnings growth (51.9% per year) is above the savings rate (1.7%).

Earnings vs Market: PLC's earnings (51.9% per year) are forecast to grow faster than the Canadian market (26.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PLC's revenue (8.3% per year) is forecast to grow faster than the Canadian market (6% per year).

High Growth Revenue: PLC's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PLC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Park Lawn performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLC has a large one-off loss of CA$9.2M impacting its September 30 2020 financial results.

Growing Profit Margin: PLC's current net profit margins (4.4%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: PLC's earnings have grown by 19.5% per year over the past 5 years.

Accelerating Growth: PLC's earnings growth over the past year (55.6%) exceeds its 5-year average (19.5% per year).

Earnings vs Industry: PLC earnings growth over the past year (55.6%) exceeded the Consumer Services industry 11.9%.


Return on Equity

High ROE: PLC's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is Park Lawn's financial position?


Financial Position Analysis

Short Term Liabilities: PLC's short term assets (CA$113.6M) exceed its short term liabilities (CA$44.3M).

Long Term Liabilities: PLC's short term assets (CA$113.6M) do not cover its long term liabilities (CA$931.2M).


Debt to Equity History and Analysis

Debt Level: PLC's debt to equity ratio (42.8%) is considered high.

Reducing Debt: PLC's debt to equity ratio has reduced from 58.2% to 42.8% over the past 5 years.

Debt Coverage: PLC's debt is well covered by operating cash flow (25.8%).

Interest Coverage: PLC's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Park Lawn current dividend yield, its reliability and sustainability?

1.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PLC's dividend (1.65%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.65%).

High Dividend: PLC's dividend (1.65%) is low compared to the top 25% of dividend payers in the Canadian market (5.28%).


Stability and Growth of Payments

Stable Dividend: PLC's dividends per share have been stable in the past 10 years.

Growing Dividend: PLC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (101.8%), PLC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Brad Green

0.67

Tenure

CA$1,683,054

Compensation

Mr. James Bradley Green, also known as Brad, has been Chief Executive Officer at Park Lawn Corporation and also serves as its Director since June 22, 2020. He served as its Interim Chief Executive Officer ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD1.29M) is about average for companies of similar size in the Canadian market ($USD1.37M).

Compensation vs Earnings: Brad's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Green
CEO & Director0.67yrCA$1.68m0.042%
CA$ 333.3k
Jay Dodds
COO, President & Director0.42yrCA$1.71m0.024%
CA$ 195.6k
James Leeder
Senior Advisor0.17yrCA$556.49k0.46%
CA$ 3.7m
William Passodelis
Vice President of CMS Mid-Atlanticno dataCA$536.86kno data
Daniel Millett
Chief Financial Officer0.17yrno data0.0047%
CA$ 37.5k
Jeff Parker
Chief Technology Officer2.42yrsno datano data
Linda Gilbert
Vice President of Finance & Administration4.67yrsCA$217.50k0.052%
CA$ 413.3k
Jennifer Hay
General Counsel0.75yrno datano data
Lorie Johnson
Vice President of Human Resourcesno datano datano data
James Price
Senior Vice President of Industry Relations1.75yrsCA$421.44kno data
Lindsay Forrest-Quinn
Corporate Secretaryno datano datano data
Suzanne Cowan
Vice President of Business Development & Corporate Affairs4.67yrsCA$280.30k0.0034%
CA$ 27.2k

0.8yrs

Average Tenure

59yo

Average Age

Experienced Management: PLC's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Green
CEO & Director0.67yrCA$1.68m0.042%
CA$ 333.3k
Jay Dodds
COO, President & Director0.42yrCA$1.71m0.024%
CA$ 195.6k
Paul Smith
Independent Chairman0.75yrCA$117.00k0.038%
CA$ 307.0k
Marilyn Brophy
Independent Director0.42yrno data0.017%
CA$ 135.8k
Amy Freedman
Independent Director0.42yrno data0.0051%
CA$ 40.8k
Deborah Robinson
Independent Director2.42yrsCA$104.50k0.037%
CA$ 298.8k
Steven Scott
Independent Director6.58yrsCA$112.00k0.044%
CA$ 354.3k
William Ward
Independent Director7.25yrsCA$65.00k0.077%
CA$ 615.1k

0.6yrs

Average Tenure

55yo

Average Age

Experienced Board: PLC's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PLC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Park Lawn Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Park Lawn Corporation
  • Ticker: PLC
  • Exchange: TSX
  • Founded: 1892
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: CA$802.223m
  • Shares outstanding: 28.98m
  • Website: https://www.parklawncorp.com

Number of Employees


Location

  • Park Lawn Corporation
  • 2 Street Clair Avenue West
  • Suite 1300
  • Toronto
  • Ontario
  • M4V 1L5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLCTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 2006
PL2DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2006
PRRW.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2006

Biography

Park Lawn Corporation, together with its subsidiaries, provides deathcare products and services in Canada and the United States. The company owns and operates 114 cemeteries, 39 crematoriums, and 109 funer...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 23:37
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.