Dignity Share Discussion Threads

[kkclimber56] 16/10/2015 16:42

presumably the 13% growth in mortalities in the first half of this year will self correct and we will return to normal levels. If it continued at that level then we will all be dead

[hydrus] 08/10/2015 20:52

Maybe someone has discovered the secret to eternal life. That would be quite bad for business I suppose.

[lomax99] 08/10/2015 08:20

After sitting on the sidelines for far too long, I have finally bought some. Lead consolidator, with only c. 12% of a highly fragmented marked, provides ample scope significant future acquisition based expansion - typically on significantly lower PE's, as there is a limited pool of likely buyers, with further boost from actually realising synergies from efficient integration.

[charlescase] 17/9/2015 11:28

Do people think El Nino effect (a few very cold winters coming) has been priced into this stock? I know if effects commodities more, but surely should have an impact here too?

[hydrus] 25/8/2015 15:48

Massive buys today - suspect there are plenty of buyers waiting for a dip..lll

[mike24] 14/8/2015 09:32

regret selling these, not even a chance to buy
cheaper over the last volatile wk
would like to have seen them buy at least some
freeholds they occupy, as values have come back
strongly, rent is dead money, long term debt (borrowing) is free
taking into account currency depreciation
over last ten yrs a big chunk of retail could have survived had they owned freehold,
nai dyor

[kkclimber56] 05/8/2015 16:38

I wonder whether this increase in death rates is a leading indicator of a fall in life expectancy which is an inevitable consequence of todays life style? If so this is good news for the public sector deficit

[hydrus] 30/7/2015 07:37

Bscuit they are referring to high deaths nationally rather than deaths they are dealing with. 'Initial estimated deaths in Britain for the first half of 2015 were 317,000 (2014: 280,000), an increase of 13 per cent. This compares to the number of deaths in the first half of 2014 being approximately seven per cent lower than the same period in 2013. The Group's operating results should therefore be considered in that context.'Presumably therefore the expectation is they may well drop back next year because they tend to revert to the average over time.

[bscuit] 30/7/2015 01:07

I guess somebody knew something looking at the share price movement in the last few weeks and with the very good interims today the price has spiked higher. I am puzzled why they think the number of deaths coming their way in 2016 will be materially lower unless they anticipate a reversion to the 2014 deaths, for which I can think of no justification. I would have thought the increased number of deaths means an increased public perception of the quality of the offering. Yes the price is high with a low dividend, but I intend to add on any 5%+ weakness.

[p777uly] 20/7/2015 08:40

Have been putting off buying in here as its looked pricey for a while but it keeps on rising!

[hydrus] 10/7/2015 21:45

'Delivering consistent increasesThe business has performed consistently over a long period. Underlying operating profit has increased on average by eight per cent per year since 2004, with the lowest annual increase being six per cent. Underlying earnings per share has increased on average by 16 per cent per year since 2004, with the lowest annual increase being six per cent. This has been achieved by remaining focused on a consistent strategy over that time.'You have to pay for that type of consistent and reliable growth. Not sure you have factored that into your valuation.

[hydrus] 10/7/2015 21:40

Some of your figures are way out but never mind, don't disagree that it's quite expensive though. There is certainly room for growth though based on their limited market share and track record.

[bozzy_s] 10/7/2015 18:18

Looks overpriced on all calculations to me.

Dividend yield under 1%.

Terrible balance sheet; net asset value -£92m, and that includes £276m of intangibles, so net tangible asset value of -£368m.

Valued in the area of 25-30 times earnings, despite limited scope for growth.

However, as is sometimes the case with seemingly undervalued stocks which never go up, these might just remain a bit overpriced and not actually drop to a more reasonable level / more traditional value based on dividend yield, balance sheet/cash, earnings.

[bscuit] 10/7/2015 16:56

It's interesting as the funerals business is highly fragmented and the only significant barrier to entry is the cost of building crematoria. The only other significant player is the Co-op. I suspect it may often be a matter of persuading owners to sell and many owners will see DTY as a constantly available buyer -probably trying to choose to be the first to sell in their geographic area.

[bscuit] 10/7/2015 16:49

No shareholder discounts--I tried for one when arranging a relative's funeral.

[che7win] 10/7/2015 16:13

Seems high to me, but it is a steady business to be in...

[hydrus] 10/7/2015 16:01

There is no doubt it's not a cheap share and when I first researched it I was in two minds. But I came to the conclusion that this is a unique share on the LSE. One which will not be affected by recessions particularly, that is protected from inflation as they can raise prices and I am very confident that in the long run management will increase EPS each year on average by at least their 10% target, more likely a bit more than that.Its as bullet proof as you can get as an investment IMO. I stumped up and paid the going rate, which at 20 times PE was pricey but not ridiculous.

[hiriam007] 10/7/2015 15:59

Wonder what shareholder perks Dignity gives? Free urn, coffin ??

[bscuit] 10/7/2015 15:55

Bear in mind it is a poor dividend, but with a good history of capital returns. My holding has been reduced twice and my base price is now 7.28. Normally I look for a better divi, but good capital appreciation is acceptable. I certainly hope there is no bid.

[hydrus] 10/7/2015 14:59

I hope not I want to be holding shares in DTY for the next twenty years

[ghostofahangman] 10/7/2015 14:19

Bid on the way ?

[hydrus] 08/5/2015 13:42

Ha yes I was wondering that.

[wingrove4] 08/5/2015 08:13

Welcome rise today. Do they think more people are going to die under the Tories? Who knows

[hiriam007] 22/4/2015 00:00

Ty for your reply eburne.

I couldn't find any other companies myself and for now DTY seems a little expensive though it's a great business to be in.