company background image
PLC

Park LawnTSX:PLC Stock Report

Market Cap

CA$1.4b

7D

1.2%

1Y

39.5%

Updated

01 Dec, 2021

Data

Company Financials +
PLC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends2/6

PLC Stock Overview

Park Lawn Corporation, together with its subsidiaries, provides funeral, cremation, and cemetery services in Canada and the United States.

Park Lawn Competitors

Service Corporation International

NYSE:SCI

US$10.9b

Hillenbrand

NYSE:HI

US$3.2b

Matthews International

NasdaqGS:MATW

US$1.1b

Carriage Services

NYSE:CSV

US$861.6m

Price History & Performance

Summary of all time highs, changes and price drops for Park Lawn
Historical stock prices
Current Share PriceCA$40.60
52 Week HighCA$42.04
52 Week LowCA$27.15
Beta1.28
1 Month Change9.97%
3 Month Change11.88%
1 Year Change39.52%
3 Year Change81.98%
5 Year Change151.39%
Change since IPO784.05%

Recent News & Updates

Nov 14
Is Park Lawn (TSE:PLC) A Risky Investment?

Is Park Lawn (TSE:PLC) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Sep 26
Park Lawn (TSE:PLC) Will Pay A Dividend Of CA$0.038

Park Lawn (TSE:PLC) Will Pay A Dividend Of CA$0.038

Park Lawn Corporation ( TSE:PLC ) has announced that it will pay a dividend of CA$0.038 per share on the 14th of...

Shareholder Returns

PLCCA Consumer ServicesCA Market
7D1.2%0.2%-3.7%
1Y39.5%36.5%20.6%

Return vs Industry: PLC exceeded the Canadian Consumer Services industry which returned 36.5% over the past year.

Return vs Market: PLC exceeded the Canadian Market which returned 20.6% over the past year.

Price Volatility

Is PLC's price volatile compared to industry and market?
PLC volatility
PLC Average Weekly Movement3.7%
Consumer Services Industry Average Movement7.8%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market3.5%

Stable Share Price: PLC is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PLC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18921,979Brad Greenhttps://www.parklawncorp.com

Park Lawn Corporation, together with its subsidiaries, provides funeral, cremation, and cemetery services in Canada and the United States. The company owns and operates 123 cemeteries, 40 crematoriums, and 116 funeral homes. It primarily offers cemetery lots, crypts, niches, monuments, caskets, urns, and other merchandise, as well as funeral services and after life celebration services.

Park Lawn Fundamentals Summary

How do Park Lawn's earnings and revenue compare to its market cap?
PLC fundamental statistics
Market CapCA$1.37b
Earnings (TTM)CA$32.17m
Revenue (TTM)CA$364.97m

42.8x

P/E Ratio

3.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PLC income statement (TTM)
RevenueCA$364.97m
Cost of RevenueCA$104.31m
Gross ProfitCA$260.66m
ExpensesCA$228.49m
EarningsCA$32.17m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.95
Gross Margin71.42%
Net Profit Margin8.81%
Debt/Equity Ratio26.9%

How did PLC perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

43%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PLC (CA$40.6) is trading below our estimate of fair value (CA$103.17)

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 (42.8x) compared to the North American Consumer Services industry average (17.4x).

PE vs Market: PLC is poor value based on its PE Ratio (42.8x) compared to the Canadian market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PLC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PLC is overvalued based on its PB Ratio (2x) compared to the CA Consumer Services industry average (1.5x).


Future Growth

How is Park Lawn forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if PLC's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if PLC's earnings are forecast to grow faster than the Canadian market

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

Revenue vs Market: PLC's revenue (12.2% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: PLC's revenue (12.2% 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


Past Performance

How has Park Lawn performed over the past 5 years?

38.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PLC has high quality earnings.

Growing Profit Margin: PLC's current net profit margins (8.8%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: PLC's earnings have grown significantly by 38.9% per year over the past 5 years.

Accelerating Growth: PLC's earnings growth over the past year (141.6%) exceeds its 5-year average (38.9% per year).

Earnings vs Industry: PLC earnings growth over the past year (141.6%) exceeded the Consumer Services industry 6%.


Return on Equity

High ROE: PLC's Return on Equity (4.8%) is considered low.


Financial Health

How is Park Lawn's financial position?


Financial Position Analysis

Short Term Liabilities: PLC's short term assets (CA$129.3M) exceed its short term liabilities (CA$54.7M).

Long Term Liabilities: PLC's short term assets (CA$129.3M) do not cover its long term liabilities (CA$974.0M).


Debt to Equity History and Analysis

Debt Level: PLC's net debt to equity ratio (19.1%) is considered satisfactory.

Reducing Debt: PLC's debt to equity ratio has reduced from 44.2% to 26.9% over the past 5 years.

Debt Coverage: PLC's debt is well covered by operating cash flow (37.6%).

Interest Coverage: PLC's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Dividend

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

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PLC's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.58%).

High Dividend: PLC's dividend (1.12%) is low compared to the top 25% of dividend payers in the Canadian market (4.68%).


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 not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.6%), PLC's dividend payments are 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

  • Explore strong dividend paying companies in the Consumer Services industry.

Management

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

2.3yrs

Average management tenure


CEO

Brad Green (49 yo)

1.67yrs

Tenure

CA$2,064,542

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 ($USD1.61M) is above average for companies of similar size in the Canadian market ($USD1.14M).

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


Leadership Team

Experienced Management: PLC's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: PLC's board of directors are not considered experienced ( 1.6 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 sold more shares than they have bought 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 17%.


Top Shareholders

Company Information

Park Lawn Corporation's 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$1.375b
  • Shares outstanding: 33.91m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 00:06
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.