TSX:PLC

Stock Analysis Report

Executive Summary

Park Lawn Corporation, together with its subsidiaries, provides deathcare products and services in North America.

Rewards

Trading at 25.9% below its fair value

Earnings are forecast to grow 94.4% per year

Earnings grew by 26.7% over the past year

Risk Analysis

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.5%

PLC

-1.9%

CA Consumer Services

0.7%

CA Market


1 Year Return

12.6%

PLC

1.8%

CA Consumer Services

5.4%

CA Market

Return vs Industry: PLC exceeded the Canadian Consumer Services industry which returned 1.8% over the past year.

Return vs Market: PLC exceeded the Canadian Market which returned 5.4% over the past year.


Shareholder returns

PLCIndustryMarket
7 Day-8.5%-1.9%0.7%
30 Day-4.1%-0.8%1.1%
90 Day-4.3%-0.9%4.4%
1 Year14.5%12.6%2.1%1.8%8.7%5.4%
3 Year86.6%75.8%63.7%50.4%16.8%6.2%
5 Year180.3%137.2%137.9%97.9%34.7%15.1%

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?

25.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PLC (CA$28.68) is trading below our estimate of fair value (CA$38.71)

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 (88.4x) compared to the Consumer Services industry average (26.4x).

PE vs Market: PLC is poor value based on its PE Ratio (88.4x) compared to the Canadian market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: PLC is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: PLC is overvalued based on its PB Ratio (1.6x) compared to the CA Consumer Services industry average (1.3x).


Next Steps

Future Growth

How is Park Lawn forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

94.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLC's forecast earnings growth (94.4% per year) is above the savings rate (1.4%).

Earnings vs Market: PLC's earnings (94.4% per year) are forecast to grow faster than the Canadian market (10.8% per year).

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

Revenue vs Market: PLC's revenue (16.1% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: PLC's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLC's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Park Lawn performed over the past 5 years?

24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLC has a large one-off loss of CA$12.4M impacting its September 30 2019 financial results.

Growing Profit Margin: PLC's current net profit margins (3.8%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: PLC's earnings have grown significantly by 24.5% per year over the past 5 years.

Accelerating Growth: PLC's earnings growth over the past year (26.7%) exceeds its 5-year average (24.5% per year).

Earnings vs Industry: PLC earnings growth over the past year (26.7%) exceeded the Consumer Services industry 14.8%.


Return on Equity

High ROE: PLC's Return on Equity (1.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Park Lawn's financial position?


Financial Position Analysis

Short Term Liabilities: PLC's short term assets (CA$75.9M) exceed its short term liabilities (CA$32.9M).

Long Term Liabilities: PLC's short term assets (CA$75.9M) do not cover its long term liabilities (CA$771.9M).


Debt to Equity History and Analysis

Debt Level: PLC's debt to equity ratio (26%) is considered satisfactory.

Reducing Debt: PLC's debt to equity ratio has reduced from 39.2% to 26% over the past 5 years.

Debt Coverage: PLC's debt is well covered by operating cash flow (39.6%).

Interest Coverage: PLC's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet

Inventory Level: PLC has a low level of unsold assets or inventory.

Debt Coverage by Assets: PLC's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

1.59%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.9%markettop25%5.3%industryaverage1.6%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: PLC's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.89%).

High Dividend: PLC's dividend (1.59%) is low compared to the top 25% of dividend payers in the Canadian market (5.29%).


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 (140.6%), PLC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PLC's dividends in 3 years are forecast to be well covered by earnings (37.3% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Andrew Clark (42yo)

6.6yrs

Tenure

CA$750,500

Compensation

Mr. Andrew Clark has been Chief Executive Officer of Park Lawn Corporation since July 30, 2013 and served as Chairman since July 30, 2013 until February 18, 2020. Mr. Clark joined as Chief Operating Office ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD567.48K) is below average for companies of similar size in the Canadian market ($USD1.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Clark
Chief Executive Officer6.6yrsCA$750.50k0.056% CA$460.0k
James Green
President1.8yrsCA$1.07mno data
James Leeder
CFO & Director6.8yrsCA$654.90k0.47% CA$3.9m
Jay Dodds
Chief Operating Officer1.8yrsCA$1.07mno data
William Passodelis
Vice President of CMS Mid-Atlantic0yrsCA$657.58kno data
Jeff Parker
Chief Technology Officer1.7yrsno datano data
Linda Gilbert
Vice President of Finance & Administration3.9yrsCA$217.50kno data
Lorie Johnson
Vice President of Human Resources0yrsno datano data
James Price
Senior Vice President of Industry Relations1yrsCA$421.44kno data
Lindsay Forrest-Quinn
Corporate Secretary0yrsno datano data

1.8yrs

Average Tenure

54yo

Average Age

Experienced Management: PLC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Leeder
CFO & Director6.8yrsCA$654.90k0.47% CA$3.9m
Timothy Powers
Lead Independent Director3.5yrsCA$69.17k0.015% CA$124.0k
Paul Smith
Independent Director3.8yrsCA$60.83k0.034% CA$281.1k
Deborah Robinson
Independent Director1.8yrsCA$38.75k0.016% CA$134.8k
Steven Scott
Independent Director5.8yrsCA$58.33k0.036% CA$295.4k
William Ward
Independent Director6.5yrsCA$56.67k0.052% CA$434.3k
Jane Craighead
Independent Director0.8yrsno data0.0094% CA$77.5k

3.8yrs

Average Tenure

54yo

Average Age

Experienced Board: PLC's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 41.8%.


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$828.571m
  • Shares outstanding: 28.89m
  • 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 North America. The company owns and operates cemeteries, crematoriums, and funeral homes. It also offers cemetery lots, crypts, niches, monuments, caskets, urns, and other merchandise, as well as funeral services and after life celebration services. The company offers its products and services at the time of need and on a pre-arranged basis. Park Lawn Corporation was founded in 1892 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 02:04
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.