The Invocare Limited (ASX: IVC) share price is up 1% in early reaction to its trading update.
InvoCare is the largest provider of funeral services in Australia, New Zealand and Singapore. It operates at 290 funeral locations. It is also the largest operator of private cemeteries and crematoria in Australia. The name stores for innovation, vocation and care. Some of its national brands includes White Lady Funerals, Simplicity Funerals and Value Cremations.
Why Invocare Shares Are Coming Back From The Dead
Between December 2017 and December 2018 the Invocare share price fell by over 40% but since the start of 2019 it has risen by more than 43%.
Today’s announcement is certainly help, and it’s a concrete showing that investors who bought over the summer break were seemingly right to do so.
Invocare reported that in the first quarter of its 2019 financial year, its gross sales revenue rose by 7.8%, the operating EBITDA grew by 22.2% (click here to learn what EBITDA means), the operating margin went up 2.5% and the operating net profit after tax increased by 9%.
The company said that, as it had indicated earlier in the year, the soft market conditions have started to improve with the number of deaths reverting to the long term trend after a period of lower than expected deaths (which was a good thing for society).
Invocare CEO Martin Earp said: “Our commitment to our key growth strategies of Protect & Grow and regional markets has been reflected in the positive results. The number of deaths has begun to return to the long-term trend and we remain focussed on our key strategies to meet the changing customer needs and to profitably grow market share.”
Is Invocare A Buy Today?
With Invocare shares up so much since the start of the year I think the best time to buy shares has passed. It does still seem to have a promising long term future with Australia’s ageing demographics, but the growth in the number of deaths is likely to be slow.
But if you are after faster growth then one of the rapid ASX growth shares in the free report below could be a better idea.
[ls_content_block id=”18457″ para=”paragraphs”]
Disclosure: At the time of writing Jaz owns shares of Invocare, but this could change at any time.
