247WallSt.com Lists Top Ten Companies That Control The Funeral Industry
The website 247wallst.com, better known as 24/7 Wall St, listed yesterday the Top Ten Companies That Control The Funeral Industry. Of course when I saw this headline (article forwarded to me from my good friends Kizer and Bender), my intrest was peaked. Most of the companies on the list I expected to see, like Batesville, Service Corp International, and Carriage Services, but there were a few that were a surprise to me, like Walmart.
Walmart has only been selling caskets for just over a year and a half, can they really be controlling the funeral industry? The article states:
Walmart, the world?s largest retailer, helped begin the trend of selling low-priced caskets online. The company offers the $995 ?Dad Remembered Steel Casket,? with ?18 gauge steel high-gloss silver-blue finish.? Walmart is taking a share of the death care industry away from funeral homes and related companies. According to the casket industry, the impact of the big box retailers is still small. Other industry experts suggest otherwise.
Who is suggesting otherwise? I haven’t talked to one funeral director who admits that Walmart is hurting their casket sales.
Here is the 24/7 Wall St. Ten Companies That Control The Death Industry:
Hillenbrand, Inc. (HI)
> Interesting Fact: Sells 45% of caskets sold in the United States
> # of Employees: 3,200
> Most Recent Quarter Revenue: $212 Million
> Most Recent Net Income: $20 Million
Hillenbrand sells more than 800,000 of the 1.8 million caskets sold in the United States each year. In addition to this, the company sells cremation containers and urns. All of Hillenbrand?s funeral products are sold under their Batesville Casket Company brand, which was founded in 1906.
Service Corp. International (SCI)
> Interesting Fact: funeral and cemetery market share in North America of roughly 12%
> # of Employees: 13,087
> Most Recent Quarter Revenue: $533.2 Million
> Most Recent Net Income: $18.8 Million
Service Corp. International owns more funeral homes, cemeteries, and crematories than any other company in North America. At last count, the company operates 1,254 funeral service locations and 372 cemeteries in 43 states, Canada, Puerto Rico, and Germany. SCI also sells a variety of merchandise including caskets, vaults, and urns.
Walmart (WMT)
> Interesting Fact: Caskets come with monthly payment terms
> # of Employees: 2,100,000
> Most Recent Quarter Revenue: $101.9 billion
> Most Recent Net Income: $3.6 billion
Walmart, the world?s largest retailer, helped begin the trend of selling low-priced caskets online. The company offers the $995 ?Dad Remembered Steel Casket,? with ?18 gauge steel high-gloss silver-blue finish.? Walmart is taking a share of the death care industry away from funeral homes and related companies. According to the casket industry, the impact of the big box retailers is still small. Other industry experts suggest otherwise.
Carriage Services Inc. (CSV)
> Interesting Fact: Carriage Services is the fourth largest publicly traded in the death care industry
> # of Employees: 917
> Most Recent Quarter Revenue: $45.5 Million
> Most Recent Net Income: $859,000
Carriage Services operates 147 funeral homes in 25 states and 33 cemeteries in 12 states. The company is a significant provider of prefunded funeral and burial services. This allows people to plan ahead by purchasing interment rights, grave sites, mausoleums, and crypts in advance. The company plans to increase its annual revenue by 43% by the end of 2014.
1-800-Flowers.com (FLWS)
> Interesting Fact: The site offers instructions on how to help others deal with the loss of a loved one
> # of Employees: 2,200
> Most Recent Quarter Revenue: $104.5 million
> Most Recent Net Income: ($5.1 million)
A significant portion of 1-800 flowers? revenue comes from the funeral business. The company offers a variety of arrangements, including ?sympathy bouquets,? ?casket sprays,? funeral wreaths, and crosses. These items are prominently displayed on the company site, as are books and guidance from a ?celebration expert,? and an original video which outlines ?how to express sympathy with flowers and gifts.? According to one 1-800-FLOWERS representative, ?Sympathy remains an important business for retail florists and 1-800-FLOWERS.COM works closely with?florists to help them grow their share in this category.?
Rock of Ages Corp. (ROAC)
> Interesting Fact: The largest integrated granite quarrier and manufacturer of
finished granite memorials and granite blocks for memorial use in North America
> # of Employees: 257
> Most Recent Quarter Revenue: $15.8 Million
> Most Recent Net Income: $2.2 Million
Rock of Ages is primarily a provider of granite used for memorials, including tombstones and mausoleums. The company operates eight different active quarries and four manufacturing facilities. The company?s revenue is divided between the selling of raw granite from its quarries and the manufacturing and selling of its final memorial products to 115 independent retailers. The company was founded in 1885 and is headquartered in Graniteville, Vermont.
Stewart Enterprises Inc. (STEI)
> Interesting Fact: Stewart facilities manages funerals and burials at each of its sites at a rate that is more than double that of an average funeral home which means its operations are unusually efficient.
> # of Employees: 4,000
> Most Recent Quarter Revenue: $125.3 Million
> Most Recent Net Income: $9.1 Million
Funeral homes and cemeteries in the United States perform an average of approximately 110 funerals and 150 burials per year. Stewart, on the other hand, performs approximately 265 funerals and 320 burials per year per location. The company currently owns 218 funeral home locations and 140 cemeteries, about 9,900 acres. Appoximately 38% of the company?s land, a significant portion of which is located in Florida, Texas, and California, is still available for burial plots.
Matthews International (MATW)
> Interesting Fact: Largest percent of revenue comes from bronze plaques
> # of Employees: 4,900
> Most Recent Quarter Revenue: $256 million.
> Most Recent Net Income: $20.6 million
Matthews International develops ?memorialization products? including caskets and urns. Its specialty is ?graphic imaging? ? the process of engraving headstones and plaques. Bronze plaques ? an often-overlooked means of remembrance ? accounted for 27.7% of its 2009 sales. The company was founded in 1850 and is based in Pittsburgh.
Amazon.com (AMZN)
> Interesting Fact: Amazon sells a steel embalming table
> # of Employees: 21,700
> Most Recent Quarter Revenue: $7.6 billion
> Most Recent Net Income: $231 million
Amazon.com helped bring the funeral service online. Like Wal-Mart, the company offers caskets in more than 50 different varieties. Additionally, it sells a steel embalming table for $1,095 and pet urns for under $200. Many caskets are sold at 67% off the list price, thanks to a partnership with Bestpricecaskets.com.
StoneMor Partners (STON)
> Interesting Fact: Company performed 37,782 burials in 2009
> # of Employees: 2,156
> Most Recent Quarter Revenue: $52.1 Million
> Most Recent Net Income: $4.6 Million
Like Service Corp. International, StoneMor Partners is a multifaceted death care conglomerate. The company operates more than 200 cemeteries in 24 states and 58 funeral homes in 16 states. It also sells interment rights, caskets, and other merchandise. In 2009, the company sold 25,842 interment rights and performed 37,782 burials.
Thoughts:
What companies should be deleted from this list or added to this list? I am a bit surprised that there was not a burial vault company on the list, as well as a company like Forethought. Any opinions? Please share below in the comments.
