Increased WeightingIncome Model Portfolio
Increase Park Lawn Corp (PLC) to a 4.0% Weighting
Trade Rationale – PLC provides goods and services associated with the memorialization of remains in Canada and the US, and as a small-cap name it witnessed a large drawdown throughout 2022. The company pays a decent yield of 1.7%, has demonstrated net profit margin expansion over the years, and has grown sales by 37% on a five-year CAGR basis. Sales and earnings are expected to grow nicely in 2023, and we are comfortable with its valuation at a 17X forward P/E. PLC has shown great fundamental strength and its valuation is cheap on a historical basis. We like its recent recovery and feel that its momentum can carry into the rest of 2023. (5iResearch)