One has to realize that “Opinions are Opinions” and they may differ dependent on the author’s perspective.  I find it is always best to get multiple opinions when I contemplate major decisions.

 

What’s interesting with today’s blog topic is that I’ve recently found two opinions on the future of Death Care’s largest company, Service Corporation International.  And, those opinions differ starkly on how they see the future of SCI.  One opinion sees the future in a positive light and one in a not so positive light.

 

I’m not going to pick a side, but if you are interested in what these parties have to say I will provide the links for you to do so.

 

Seeking Alpha’s  Daniel Jones authored this opinion  (dated July 22, 2023) which is titled “Service Corporation International:  Still an Opportunity that offers upside despite recent weakness.”

 

In his argument Jones states the following, “. . .an industry leader in a space that should be quite stable moving forward, with any instability likely helping it instead of hurting it, I would say that shares are attractively priced. Given these factors, I have no problem keeping the company rated a ‘buy’ for now.” 

 

Jehosophat Research authored this report  (dated July 19, 2023) entitled, “Online Price Transparency:  Neutral for the funeral industry, a revenue crisis for SCI.”

 

The Jehosophat Research report brings this assumption to its opinion, “The United States Federal Trade Commission is also bringing a rule change requiring transparent online pricing in the funeral business across the US, expected this year or next. The mere threat of this rule has been enough to permanently alter the US marketplace.”

 

The report goes on to follow the historical pattern of price transparency using the introduction of online pricing in Australia and Great Britain and what that meant to the industry leader as a template for what they believe may happen to SCI.

 

Funeral Director Daily take:  Excellent opinions from two researchers.  The Federal Trade Commission seems to be moving slowly with its final ruling on the Funeral Rule.  However, I am in agreement with a late 2023 or a 2024 final ruling and I do believe that ruling will require Online Pricing as mandatory for funeral providers — again, just my opinion, but all indications seem to be leaning that way.

 

Here’s what the Jehosophat report says about online pricing:

“After decades of being nudged by consumer advocates, the US funeral industry has finally begun posting its prices online in more than sporadic cases. Online price transparency will do the same thing here that it has done in other countries: Flatten prices at the expense of high-priced funeral homes.”

 

While the Jehosophat report brings up the potential negative ramifications of online pricing for SCI, the Seeking Alpha Jones report has this link to the U.S. Census data which shows that the “long-term” should be good for any market share leader in that it shows the number of 65 and older adults will go from about 56 million in the United States today to about 85 million in the United States by 2050 — that’s a 51% increase. . . . .and, it’s my opinion, again, that older people will eventually need death care services. . the more there are, the more services there are bound to be.

 

Finally, I found that the Jehosophat report took a historical look into the Spanish Flu of 1918 and its effect on something death care professionals have been hypothesizing about — that being “Were the additional deaths during the recent pandemic what would be referred to as “pull-forward” deaths?”  The Jehosophat report concluded, with the benefit of hindsight, that the  additional deaths, over the yearly average, of the Spanish Flu pandemic of 1918 deaths were “Pull-Forward” deaths as the number of deaths following the U.S. Spanish Flu epidemic were depressed, on a yearly basis, for several years.

 

If that holds true for the recent pandemic, funeral homes or funeral home systems with with a statistical large enough volume base could be affected for years with reduced call numbers.  Again, that’s an opinion of the Jehosophat report.

 

Again, great reads from both opinions, but as mentioned earlier. . . . “Opinions are Opinions”.

 

Disclaimer — The author of this article holds a stock position in Service Corporation International

 

More news from the world of Death Care:

• “One Life Funeral Planning fallout is a scandal, buyers must get money back,”  says Jeff Prestridge.  This is Money.  “United Kingdom)
• Then and Now:  Mount Hope Cemetery through the years.  Lansing State Journal  (MI)
• Can you bury a body in your backyard?  What about your pet?  What Florida law says.  Yahoo News

 

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