This report is an updated version of the report published on 28 August 2025 at 12:15 PM AEST.

Propel Funeral Partners Limited (ASX: PFP)   

Propel Funeral Partners Limited is an Australia-based company engaged in the provision of death care related services in Australia and New Zealand. It owns and operates businesses, properties, infrastructure, and related assets in Queensland, New South Wales, Victoria, Tasmania, South Australia, Western Australia, and New Zealand. 

Recommendation Rationale – SELL at AUD 5.220

• Technical View: PFP’s share price has surpassed the R1 level recommended on 12 August 2025, with the 14-day RSI at 71.85 in overbought territory, raising the likelihood of a near-term pullback from profit-taking and risk of short-term consolidation or downside retracement.
• Margin Compression: Operating EBITDA margin declined to 24.9% in FY25 from 26.5% in FY24 (down 160 bps), reflecting softer funeral volumes in H2 FY25, acquired business mix, and changes to executive remuneration.
• Earnings Decline: Operating EPS reduced to 15.7cps in FY25 from 16.8cps in FY24, impacted by the FY24 capital raising.
• Leverage Risk: Borrowings increased to AUD 115.7 million in FY25 from AUD 87.4 million in FY24, lifting total non-current liabilities to AUD 159.5 million in FY25 versus AUD 134.0 million in FY24, adding balance sheet pressure.

PFP Daily Chart 

 PFP Daily Technical Chart; Source: REFINITIV 

Valuation Methodology: Price/Cash Flow Approach (FY Jun'26E) (Illustrative)

The stock might trade at a premium to peers given its 7.9% revenue growth from FY24 to FY25 to AUD 225.8 million, supported by a 2.3% increase in Average Revenue Per Funeral, a rise in net profit after tax to AUD 20.4 million versus AUD 17.8 million in FY24, and a 4.4% uplift in operating cash flow compared to FY24.

For conducting the valuation, peers including Web Travel Group Ltd (ASX: WEB), Eagers Automotive Ltd (ASX: APE), Premier Investments Ltd (ASX: PMV) and others have been considered.

Given its current trading levels, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 5.220, as of 28 August 2025 at 11:30 AM AEST. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 28 August 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.