Why I’m Buying the Dip in Park Lawn

Shares of Park Lawn, a Toronto-based company that provides death care products and services in Canada and the United States, have plunged 40% in 2022 as of close on September 21. That has pushed the stock into negative territory in the year-over-year period. The COVID-19 pandemic spurred a troubling spike in total deaths in North America and around the world. This, in turn, led to a boom in death care services. In Q2 2022, Park Lawn delivered net revenue growth of 5.4% to $75.9 million. Meanwhile, net revenues jumped 11% to $159 million in the year-to-date period. Its adjusted EBITDA stood at $37.0 million in the first six months of fiscal 2022 – down 1.7% from the same year-to-date period in fiscal 2021. A normalized death rate compared