Top Pick DetailsLast stock in the clip; he and his family also own it personally. GLTA https://www.bnnbloomberg.ca/video/stephen-takacsy-s-top-picks~2558049 PARK LAWN (PLC TSX)
Aging demographics and industry consolidation.
The only publicly traded company in Canada in the “deathcare” industry. PLC owns funeral homes, crematoria and cemeteries in Canada and the US. It’s a recession-proof high-margin high-barriers-to-entry business with strong tailwinds from aging demographics. Strong management team based in the U.S. where they are focused on an a mergers and acquisition strategy to consolidate a still very fragmented industry as the number two player after Service Corporation. EBITDA is expected to double to $150 million by 2026, at a 15 per cent CAGR. Stock was added to TSX Composite last year. The massive pullback from $42 to $22 caused by the market correction and tough comps during the pandemic’s higher death rate is a great entry point into this unique business trading at around 10X 2023 EBITDA with a healthy balance sheet, good organic and mergers and acquisition growth and strong free cash flow.
TOP PICK
Park Lawn Corp(PLC-T)
06/11/2022 at 07:00pm
Has high margins and there are high barriers to entry for others. Also has high demographic tailwinds behind it. Has a good management team with an M&A strategy as well as organic growth. Is guiding to $150 million EBITA by 2026. Joined the TSX last fall. Buy 7, Hold 1, Sell 0. (Analysts’ price target is $36.31)
Other Services
Stephen Takacsy, B. Eng, MBA
$22.300
Owned