Article Image

IPFS News Link • Death

The Funeral Business Is Booming (And Not Because Of COVID)

• https://www.zerohedge.com by Alex Berenson

Today Service Corporation International, the largest for-profit funeral operator in North America, had its quarterly earnings call. SCI had another great quarter, you'll be pleased to hear! So far in 2022 the company has made almost $500 million in profits - and its stock is up over 15% since last week's earnings report.

(Death is your best investment!)

SCI's management seems fairly open with investors. For many years, much of the company's growth came from buying family-run funeral homes as their operators, umm, died out. The underlying funeral business is slow growth and very predictable.

At least it used to be.

As Thomas L. Ryan, Service Corporation's chairman and chief executive, told investors Wednesday morning:

If you go back in this industry and particularly with SCI, year-to-year you would see the numbers of deaths -- probably in one year you may be down 1% or 2%, in the next year you're up 1% or 2% which you could predict was pretty good accuracy over a year and over a big footprint like ours what was probably going to happen… 2020 comes along, Covid, game-changer, right. We're having to do at one point of time 20 percent more funerals which is unheard of in a year versus, let's say, a year or two before.

So Service Corporation expected that once Covid passed, its business would go back to normal…


PurePatriot