Last week the Valkyrie Trading Society wrote an article for Seeking Alpha entitled “Service Corporation International: Feeling minimal pressures”. You can access the article here.
Here are three take-aways from that article:
- The themes are that COVID-19 pulled forward mortality, making 2020 and 2021 strong years for Service Corporation International.
- There is also commentary around reduced discretionary spending, which is affecting the very cash and margin generative pre-need business and merchandise and services.
- Nonetheless, the pressures are quite small and baby boomers are still entering the high mortality ages.
Here is the article’s basic take on Service Corporation International as a stock pick:
“It (SCI) benefits relative to other geographies from solid US demographics, and the negative effects expected from strong comps were better than expected. The business is cash generative, and with both a strong medium-term and secular-term outlook, as well as a resilient short-term outlook, it looks like a solid value play.”
Funeral Director Daily take: The article goes on to tell a little bit how the cemetery business works as well as how American demographics is expected to play into the death care industry moving forward.
Regardless if you are an investor or someone who is involved in the death care profession there is something to learn from just reading the article and the author’s perspective on the death care business.
Disclaimer – The author of this article is a shareholder of Service Corporation International.
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