Propel Funeral Partners Ltd. (PFP) AI Stock Analysis

• Market Cap: AU$607.08M
• Dividend Yield: 2.86%
• Average Volume (3M): 227.40K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 0.66
• Revenue Growth: 7.75%
• EPS Growth: 4.38%
• Country: AU
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.09
• Shares Outstanding: 137,973,590
• 10 Day Avg. Volume: 63,923
• 30 Day Avg. Volume: 227,403
• PEG Ratio: 4.29
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 2.78
• P/FCF Ratio: 43.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$5.68
• Price Target Upside: 13.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): AU$240.42M

• Rating: 61 Neutral
• Price Target: AU$4.50 ▼(-10.36% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is supported primarily by strong financial performance (notably robust cash flow and improved profitability), but is held back by weak technical momentum (price below key moving averages with negative MACD and oversold RSI) and a relatively high P/E that limits valuation appeal despite a moderate dividend yield.

Positive Factors

Free cash flow strength

A very large free cash flow increase (593% y/y) signals durable internal funding capacity. Strong FCF supports capex for facility upkeep, potential tuck-in acquisitions, dividend sustainability and debt servicing, materially lowering refinancing and liquidity risk over the medium term.

Improving net profitability

The shift from a negative net margin to +8.51% indicates meaningful operating recovery and pricing or cost management gains. Sustained positive net margins provide earnings durability and capacity to invest in services, making cash flows and returns more predictable over 2–6 months.

Balanced capital structure

A moderate, stable leverage profile (D/E ~0.48) suggests prudent funding and room to absorb shocks. Combined with improving ROE, this balance offers financial flexibility for operations and growth while limiting restructuring risk compared with highly leveraged peers.

Negative Factors

Operating margin pressure

A decline in EBIT margin to 17.53% signals compression at the operating level, which can persist if input or labor costs rise or utilization weakens. Sustained operating efficiency erosion would limit the company's ability to convert revenue gains into durable profit expansion.

Modest revenue growth

Revenue growth near 3.4% reflects a mature, slow-growing top line. Limited organic growth can constrain scalability, weaken operating leverage, and reduce the margin for error versus peers. Longer-term returns will depend more heavily on margin improvement or acquisitions.

EPS contraction

Negative EPS growth suggests per-share earnings pressures despite strong cash flow. This divergence may reflect one-off items, higher interest or non-cash charges, or share-count effects. Persistent EPS declines can impair investor confidence and limit dividend or reinvestment capacity.

Propel Funeral Partners Ltd. Business Overview & Revenue Model

Company Description

Propel Funeral Partners Ltd. (PFP) is a leading provider of funeral services and related products in Australia and New Zealand. The company operates a network of funeral homes and crematoriums, offering a range of services including traditional funerals, direct cremations, and pre-paid funeral plans. PFP is committed to delivering compassionate and personalized care to families during their time of need, while maintaining a focus on operational excellence and community engagement.

How the Company Makes Money

Propel Funeral Partners generates revenue primarily through the provision of funeral services, which include conducting funerals, cremations, and related services such as memorialization and grief support. Key revenue streams include service fees for funeral arrangements, sales of caskets and urns, and revenue from pre-paid funeral plans. Additionally, the company benefits from strategic partnerships with various funeral service providers and suppliers, which enhance its service offerings and operational efficiency. By expanding its network of funeral homes and acquiring existing businesses, PFP has also been able to increase its market share and drive growth in revenue.

Propel Funeral Partners Ltd. Financial Statement Overview

Summary

Solid overall fundamentals driven by strong cash generation (very large free cash flow growth and improved cash conversion) and improving profitability (net margin up to 8.51% in 2024). Offsetting factors include some operating efficiency pressure (EBIT margin down to 17.53% in 2024) and moderate leverage with a slight uptick in debt-to-equity.

Income Statement

Propel Funeral Partners Ltd. has shown consistent revenue growth over the years, with a notable increase in gross profit margin from 30.87% in 2023 to 69.77% in 2024. The net profit margin improved significantly from a negative margin in 2022 to 8.51% in 2024. However, the EBIT margin slightly decreased from 19.47% in 2023 to 17.53% in 2024, indicating some pressure on operating efficiency. Overall, the company demonstrates strong revenue growth and improving profitability, though there are some concerns regarding operating efficiency.

Balance Sheet

The company's debt-to-equity ratio has been relatively stable, with a slight increase from 0.41 in 2024 to 0.48 in 2025, indicating a moderate level of leverage. Return on equity improved from a negative in 2022 to 5.06% in 2024, showing better utilization of equity. The equity ratio remained stable, reflecting a balanced capital structure. Overall, the balance sheet shows a stable financial position with moderate leverage and improving returns.

Cash Flow

Propel Funeral Partners Ltd. has demonstrated strong cash flow performance, with a significant increase in free cash flow growth of 593.36% in 2025. The operating cash flow to net income ratio improved, indicating efficient cash generation relative to net income. The free cash flow to net income ratio also improved, showing strong cash conversion. Overall, the cash flow statement reflects robust cash generation and efficient cash management.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	228.91M	224.87M	209.24M	168.09M	144.99M	120.23M
Gross Profit	111.81M	156.77M	145.99M	51.90M	44.39M	37.98M
EBITDA	52.40M	53.74M	50.97M	44.12M	15.97M	34.05M
Net Income	21.13M	20.40M	17.81M	19.01M	-318.00K	14.44M
Balance Sheet
Total Assets	653.06M	655.12M	624.58M	539.86M	428.65M	387.34M
Cash, Cash Equivalents and Short-Term Investments	9.09M	9.05M	7.25M	46.88M	7.87M	7.50M
Total Debt	198.44M	171.73M	144.78M	173.52M	85.70M	123.47M
Total Liabilities	305.83M	300.05M	272.85M	286.53M	179.88M	200.43M
Stockholders Equity	347.23M	355.07M	351.73M	253.33M	248.76M	186.91M
Cash Flow
Free Cash Flow	13.69M	14.30M	7.94M	12.53M	11.55M	15.53M
Operating Cash Flow	41.61M	39.99M	34.37M	32.26M	24.28M	27.20M
Investing Cash Flow	-35.98M	-41.29M	-121.73M	-64.64M	-30.91M	-34.72M
Financing Cash Flow	-2.51M	3.09M	47.85M	71.34M	7.15M	-38.93M

Propel Funeral Partners Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PFP, the sentiment is Negative. The current price of 5.02 is above the 20-day moving average (MA) of 4.83, above the 50-day MA of 4.91, and above the 200-day MA of 4.81, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 35.11 is Neutral, neither overbought nor oversold. The STOCH value of 11.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:PFP.

Propel Funeral Partners Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GWA	74 Outperform	AU$639.14M	13.61	14.28%	6.20%	1.21%	12.29%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PFP	61 Neutral	AU$607.08M	29.26	5.77%	2.86%	7.75%	4.38%
AHX	61 Neutral	AU$164.41M	190.22	0.68%	2.30%	1.11%	-84.06%
UNI	58 Neutral	AU$715.81M	17.92	15.62%	4.70%	15.51%	-32.98%
SHJ	57 Neutral	AU$121.96M	12.58	0.21%	7.14%	4.44%	-90.57%
MFD	48 Neutral	AU$37.34M	-1.75	-37.06%	―	18.84%	-1657.69%

Propel Funeral Partners Ltd. Corporate Events

Propel Funeral Partners posts steady H1 gains and secures cheaper long-term funding

Propel Funeral Partners reported modest first-half FY26 growth, with revenue up 3.1% to $118.8 million, operating EBITDA up 1.3% to $30.3 million, and operating NPAT up 1.2% to $12.4 million, while maintaining stable funeral volumes and average revenue per funeral on a comparable basis. The group lifted its fully franked interim dividend to 7.5 cents per share, benefited from recent New Zealand acquisitions, and highlighted strong cash conversion.

The company extended the maturity of its $275 million debt facilities to October 2029 on improved pricing, added a new $50 million accordion facility, and now has $182 million of funding capacity, leaving leverage comfortably within covenant limits. Management signalled continued focus on bolt-on acquisitions in Australia and New Zealand, aiming to capitalise on favourable demographics and industry fragmentation, though the timing of further deals remains uncertain.

The most recent analyst rating on (AU:PFP) stock is a Buy with a A$5.90 price target. To see the full list of analyst forecasts on Propel Funeral Partners Ltd. stock, see the AU:PFP Stock Forecast page.

Propel Funeral Partners Declares Interim Dividend for Half-Year to December 2025

Propel Funeral Partners has declared a fully franked interim dividend of AUD 0.075 per ordinary share for the six-month period ending 31 December 2025, reinforcing its practice of returning capital to shareholders. The dividend will trade ex on 3 March 2026, with a record date of 4 March 2026 and payment scheduled for 2 April 2026, providing income visibility and a set timetable for investors monitoring the stock’s yield profile.

The most recent analyst rating on (AU:PFP) stock is a Buy with a A$5.90 price target. To see the full list of analyst forecasts on Propel Funeral Partners Ltd. stock, see the AU:PFP Stock Forecast page.

Propel Funeral Partners Outlines FY26 First-Half Results and Key Reporting Measures

Propel Funeral Partners released an investor presentation outlining its FY26 first-half results and providing general background information for shareholders and prospective investors. The company emphasised that the material is informational only, not investment advice or an offer of securities, and that its shares are not registered for sale in the United States under U.S. securities laws.

The presentation highlights the use of non-IFRS financial measures, including Operating EBITDA, Operating EBIT and Operating NPAT, which adjust for non-operating items to reflect the group’s core earnings. Propel also cautions that certain historical figures are presented on a pro forma basis and that forward-looking information involves risks and uncertainties, with no guarantee of future performance or assurance regarding the completeness or accuracy of the data.

The most recent analyst rating on (AU:PFP) stock is a Buy with a A$5.90 price target. To see the full list of analyst forecasts on Propel Funeral Partners Ltd. stock, see the AU:PFP Stock Forecast page.

Propel Funeral Partners lifts half-year profit and maintains dividend amid steady revenue growth

Propel Funeral Partners reported a 3.1% rise in revenue to $118.8 million for the half-year to 31 December 2025, with statutory profit after tax up 6.2% to $12.5 million and Operating NPAT edging 1.2% higher to $12.4 million. The company highlighted Operating NPAT as a core earnings measure, adjusting for acquisition costs and other non-operating items, and confirmed a fully franked final dividend of 7.0 cents per share for the 2025 financial year, indicating steady profitability and continued investment-led expansion.

Earnings growth was supported by higher contributions from ordinary activities, while reconciling items such as acquisition expenses, net financing effects on pre-paid contracts and asset disposals shaped the gap between statutory profit and Operating NPAT. These results suggest Propel is maintaining margin stability despite acquisition and financing-related adjustments, reinforcing its capacity to return cash to shareholders while pursuing further scale in the funeral services market.

The most recent analyst rating on (AU:PFP) stock is a Buy with a A$5.90 price target. To see the full list of analyst forecasts on Propel Funeral Partners Ltd. stock, see the AU:PFP Stock Forecast page.

Propel Funeral Partners Sets Date for FY26 Half-Year Results Release

Propel Funeral Partners has announced it will release its FY26 half-year financial results before the market opens on Tuesday, 24 February 2026, with a results teleconference to be hosted later that morning by Co-CEOs Fraser Henderson and Lilli Rayner alongside CFO Arash Noaeen, and a webcast recording to be made available the following day. The timing and format of the release signal the company’s intention to maintain transparent communication with investors and other stakeholders as it reports on its interim performance in the highly consolidated death care sector across Australia and New Zealand.

The most recent analyst rating on (AU:PFP) stock is a Buy with a A$5.90 price target. To see the full list of analyst forecasts on Propel Funeral Partners Ltd. stock, see the AU:PFP Stock Forecast page.