Stewart Enterprises, Inc. (NASDAQ:STEI)

CAPS Rating: 4 out of 5

Through subsidiaries, provides a complete range of funeral merchandise and services, along with cemetery property, merchandise and services, both at the time of need and on a preneed basis.


Player Avatar HP2006 (77.16) Submitted: 6/25/2007 12:30:50 AM : Outperform Start Price: $7.87 STEI Score: +1.30

Good value in a defensive sector, with high growth prospects. Smaller player at a good value and possibly an acquisition target.
"Stewart Enterprises provides funeral and cemetery products and services for death care industry in the United States. It offers various funeral merchandise and services, as well as cemetery property, merchandise, and services. The company's funeral homes offer a range of services and products, including funeral services, cremation, transportation services, removal and preparation of remains, caskets, and flowers. It also sells cemetery property, which includes lots, lawn crypts, and family and community mausoleums; merchandise, such as vaults, monuments, and markers; and services consisting of burial site openings and closings, and inscriptions. As of October 31, 2006, Stewart Enterprises operated 229 funeral homes and 143 cemeteries in 25 states within the United States and Puerto Rico." (Y)
"Funeral services companies are recession-proof and virtually immune to a slowing economy or rising rates -- the market's two biggest fears right now. There's a built-in degree of certainty with the steady supply of customers. And strong cash flow within the fragmented industry makes buyouts plausible and mergers likely." (B)

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