Wondered what people thoughts are on the funeral director/cemetery stocks. Seems a bit of a no brained at the start of the pandemic.
The first two seem to have price to earnings ratios of 20 to 25, which coupled with limited historical growth (apart from 2020) maes me think that long term they won’t have much growth.
The last one seems to be have been unprofitable the last few years. I guess it might be a good option if it turns profitable this year, I have not looked into this year’s numbers. Nonetheless, beware the debt. Particularly this one, but I think all of them seem to have significant debt.
I think it’s a dead end
Thanks for the tip. It just seems like a field which will have an ever growing demand, especially in the current climate. Does look like it’s had its run, especially over the past few years.
Traditionally I like companies with a ROCE substantially greater than the cost of capital and there are far too many companies which are able to fulfil that criteria
In terms of high ROCE, what sectors are you currently looking at?
I might have a look at them .
Take out the oils and financials. Even though I accept that buying these companies at a low price may lead to decent profit, take Rdsb as an example. People like to wait for the market cycle to arrive but I’d rather focus on the following:
Tech: Googl, Fb, Msft, adbe, intuit
Payment processors: pypl, ma, v, adp
Food/drinks: dge, bf.b, nesn, costco
Personal products: El, OR
Household products: PG
Healthcare: JNJ, NVO
Healthcare equipment: idexx, Stryker
Consumer discretionary: Nike
Capital goods: Otis