https://markets.ft.com/data/equities/tearsheet/financials?s=DTY:LSE&subView=IncomeStatement
looks like Dignity generates circa 12.5% ROA ........
ev/ebitda can be a bit misleading (b/c of mr market valuation of said equity) .....
geared to the hilt .....
and its SG&A is obscene !!!!!!!!!!!!!!!!!!!!!
reasons for mr market to "get concerned"
1. earnings on the equity/bond portfolio that underpin the pre-paids, versus inflation in costs for provision of this service
2. ex-growth (propel beating them to make acqusitions..)
3. protect and grow is just "protect" .....
being a bit silly ....
solid co - that has to spend some of the c/flows to "modernise" its customer front end .......
the "back end" is where the opex is ......
cost of gas in fy19/20 to hurt profits ? ......
smile
rgds
V_H