Park Lawn (TSX:PLC) provides goods and services associated with the disposition and memorialization of remains in Canada and the United States.
North America’s aging population has led to the growth of the death care industry. Park Lawn is notable for its superior balance sheet, which has freed it up to make attractive acquisitions in recent years.
Shares of Park Lawn fell 2.79% on April 1. Its stock has dropped 37% month over month. Park Lawn has taken a hit due to broader volatility, but half of these losses have come over the last two days.
The company released its fourth quarter and full-year results for 2019 on March 30.
Revenue rose 36.2% year-over-year to $68.9 million in the fourth quarter, and for the full year Park Lawn posted revenue growth of 51.3% to $244 million. However, the markets reacted poorly to the earnings miss in Q4.
Adjusted net earnings fell to $4.7 million over $4.9 million in the prior year. For the full-year, adjusted net earnings rose to $22.3 million over $16.1 million in 2018.
The company completed six acquisitions in 2019 which has greatly expanded its U.S. presence. Park Lawn’s businesses have been designated as essential services. The company will take a hit from the broad economic shutdown, but it offers some stability in this uncertain time.
Park Lawn boasts a fantastic balance sheet and promising growth potential. The stock last had a favourable price-to-book value of 0.9. It last announced a March 2020 dividend of $0.038 per share, representing a 2.7% yield.
