Why the Propel Funeral Partners share price is climbing today

Propel Funeral Partners Ltd (ASX:PFP) is a rival to Invocare Limited (ASX:IVC).

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Propel Funeral Partners Ltd (ASX: PFP) share price is up 1.6% to $2.55 today after the funeral parlour operator and aggregator told investors that it expects first half adjusted earnings to be roughly in line with the $6.27 million delivered in the prior corresponding period.

However, investors should note the adjusted profit amount backs out 'transaction costs', foreign exchange impacts and "other non operating income and expenses".

As such investors should wait for the February 25 2019 interim result to see properly how the group has endured challenging conditions that have seen lower-than-expected deaths over the period.

This phenomenon has also dragged down the Invocare Limited (ASX: IVC) share price, which is a larger rival that operates the White Lady funerals parlours among others.

Propel expects to pay out 75%-85% of its net profit in dividends and maintains a moderately strong balance sheet with $11 million net cash in hand, which is notable as its growth strategy depends partly on acquisitions.

It's also aiming to grow revenue per funeral on a like-for-like basis and flagged that it's on track to deliver 2%-4% growth for the current half-year period.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has recommended InvoCare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Man on a laptop thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors weren't in a good mood this Monday.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Abacus Storage King, DroneShield, Hansen, and Macquarie Technology shares are charging higher

These shares are starting the week on a positive note. But why?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finished the trading week on a sour note today.

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

4 ASX 200 stocks smashing the benchmark this week

Investors are sending these four ASX 200 stocks soaring this week. But why?

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why IGO, Johns Lyng, Lynas, and Web Travel shares are pushing higher today

These shares are ending the week on a high. But why?

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

Guess which 4 ASX 200 shares are rocking new 52-week highs today!

Investors just sent these four ASX 200 shares to one-year-plus highs.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Evolution Mining, Orthocell, Platinum, and Turaco shares are charging higher

These shares are having a better day that most on Thursday.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing hump day session for the ASX today.

Read more »