Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Park Lawn Corp T.PLC

Alternate Symbol(s):  PRRWF | T.PLC.DB

Park Lawn Corporation is engaged in providing goods and services associated with the disposition and memorialization of human remains. The Company and its subsidiaries own and operate businesses, including cemeteries, crematoria, funeral homes, chapels, planning offices and a transfer service. Its primary products and services are cemetery lots, crypts, niches, monuments, caskets, urns and other merchandise, funeral services, after-life celebration services and cremation services. Its products and services are sold on a pre-planned basis or at the time of death. It has one stand-alone funeral home located in Durham, North Carolina; one stand-alone funeral home and one on-site funeral home and cemetery located in Abingdon, Virginia; eight stand-alone funeral homes, two stand-alone cemeteries and one on-site funeral home and cemetery located in and around the Savannah, Tennessee area; three stand-alone funeral homes located in Brampton, Woodbridge and Toronto, Ontario and more.


TSX:PLC - Post by User

Post by retiredcfon Mar 15, 2023 1:48pm
166 Views
Post# 35340457

TD Model Portfolio

TD Model Portfolio

Canadian Small-cap Model Portfolio

Consumer Discretionary

We are adding a position in Park Lawn Corp. (PLC-T) at 3.0%.

After falling nearly 38% last year on declining earnings, Park Lawn posted better- than-expected Q4/F22 results earlier this month. An earnings beat of $0.33 versus $0.31 expected led to a positive turn of 5.6% in 2023 consensus earnings, which had been previously lowered more than 26% over the past year (Exhibit 1). However, revisions were mixed, as the 2024 consensus moved lower by 5.4%. A potential positive to these combined revisions is that year-over-year EPS growth expectations have narrowed to 15.9% from 29.8% previously. Given the positive momentum we are now witnessing in 2023 estimates, reduced growth expectations could lead to upward revisions to 2024 estimates in the coming quarters, in our view.

The positive inflection in earnings momentum (2023 estimates revised higher) has contributed to Park Lawn's rise in its 12-month forward consensus earnings estimate to $1.57 from the November low of $1.45 (+8.3%, Exhibit 2). With forward earnings now rising, the year-over-year change turned less negative this month (i.e. positive second derivative). Along with the bottoming in share price that has also developed, we see similarities between today and the 2020 earnings recovery in which Park Lawn rallied up to over $40 (Exhibit 3). At 17.3x, Park Lawn is trading below its 2020 forward P/E low of 17.8x and almost two standard deviations below its median of 22.8x (Exhibit 4). Revenue growth, which had stalled over the past several quarters, also jumped 18% year-over-year on Q4/F22 results (Exhibit 5).

Reinforcing our views above is the improving technical backdrop for Park Lawn, which, since November, continues to build support around its 50-day moving average (Exhibit 6). Following the pullback in share price over the past week, along with what we consider to be a less economically sensitive consumer name in what is becoming a highly volatile market, we are adding Park Lawn to our small-cap portfolio at 3.0%.


<< Previous
Bullboard Posts
Next >>