The Best Funeral Home Stocks to Buy in February 2025

Key takeaways

The funeral industry is recession-resistant – Regardless of economic conditions, funeral services remain in steady demand, making these stocks relatively stable investments.

Cremation is reshaping the business – With cremation rates rising, companies are adapting by offering premium cremation services, memorialization products, and cremation equipment.

Scale and pricing power matter – Larger players like Service Corporation International (SCI) benefit from industry consolidation and pricing power, while smaller firms like Carriage Services (CSV) compete by focusing on premium, personalized services.

3 stocks I like better than the ones on this list.

They say death and taxes are the only sure things in life. So, if you’re thinking of investing in one of these guaranteed areas, you’re in the right spot as we will be diving into some of North America’s best funeral home stocks.

Why be bullish on funeral stocks?

Since it’s impossible to invest in taxes, putting cash to work in an industry that makes many people uncomfortable — death, isn’t a bad thing. Yes, everybody dies, but that alone doesn’t necessarily make passing a good investment theme.

You only die once, after all. And longer life spans combined with ever-lower infant mortality translate into lower death rates.

However, a few factors combine to make the funeral home industry bullish. A pandemic caused the untimely death of more than 1 million Americans and an additional 50,000 Canadians.

That alone is a lot of burials. Drug use has led to an explosion of premature deaths in young people. And after a decades-long streak of life expectancy marching ever higher, the trend has begun to reverse in Canada and the United States.

People don’t cheap out on funerals

Another reason to be bullish about burial service stocks is that we only die once. Nobody wants to be accused of cheating out on Grandma’s funeral. This ensures a funeral home’s pricing power and means grieving relatives are likely to say yes to high-margin add-ons.

As our population grows, so does the need for resting places. Yes, many folks opt to be cremated, but they still want somewhere relatives can visit. So they’re choosing a hybrid option and storing cremated remains in vaults at the cemetery. This, combined with still strong demand for casket burials, also bodes well for the cemetery business.

Besides, what better way to hedge your own inevitable passing? A small investment in a top funeral home stock could make you enough money to pay for a pretty comfortable trip into the afterlife. It’s an excellent way to stick it to the man.

With the Toronto Stock Exchange being heavily cyclical and exposed to industries such as steel, financials, oil and gas, and gold, there are not many Canadian stocks in the funeral sector.

In fact, Canada’s only publicly-listed company in this industry was taken private, so there are no longer any pure-play funeral home stocks listed in Canada.

With that in mind, I have to expand this list to North America. Lets go over the top funeral home stocks to buy today.

Memorialization and industrial technology provider

Matthews International Corporation (NASDAQ:MATW)

Matthews International operates across multiple industries, but its memorialization segment is a key driver of revenue. The company provides cemetery and funeral home products, including bronze and granite memorials, caskets, and cremation equipment. Beyond funeral services, Matthews is also involved in industrial technology and energy storage solutions, diversifying its revenue streams.

P/E:

5 Yr Revenue Growth: 3.2%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: 3.7%

Yield: 3.5%

  • Diversified business model reduces risk exposure from any single industry.
  • Leading supplier of cremation equipment, benefiting from the rising popularity of cremation.
  • Strong brand presence in memorial products, ensuring long-term contracts and relationships.
  • Expanding industrial technology segment could be a hidden growth driver.
  • Consistent revenue despite economic downturns due to stable demand.
  • Trades at a relatively low valuation compared to other industrial and funeral-related firms.
  • Cremation Growth – With cremation rates increasing globally, Matthews’ cremation equipment sales and services should continue expanding.
  • Industrial Technology Segment – The company’s energy storage and automation businesses could become bigger revenue contributors over time.
  • Pricing Power in Memorialization – Inflation and higher input costs may push Matthews to raise prices on memorial products.
  • Competitive Landscape – Matthews faces competition from smaller niche players and larger industrial firms moving into its space.
  • Input Costs – Rising raw material costs (bronze, granite) could squeeze margins.
  • Cremation Disruption – While cremation boosts equipment sales, it may reduce demand for traditional memorialization products over time.
  • Debt Levels – Matthews has taken on debt for expansion, which could be a burden if cash flow weakens.
  • Economic Sensitivity – While funeral services are stable, other parts of Matthews’ business are more cyclical.

Largest funeral and cemetery operator in North America

Service Corporation International (NYSE:SCI)

Service Corporation International (SCI) is the dominant player in the North American funeral home and cemetery business. The company owns and operates thousands of funeral homes and cemeteries across the U.S. and Canada. With its scale and extensive pre-need sales programs, SCI has built a strong moat in the death care industry.

P/E: 22.7

5 Yr Revenue Growth: 5.1%

5 Yr Earnings Growth: 8.1%

5 Yr Dividend Growth: 10.5%

Yield: 1.5%

  • Largest funeral home and cemetery operator, providing unmatched scale.
  • Recurring revenue model through pre-need funeral and cemetery sales.
  • Pricing power in a fragmented industry where smaller operators struggle to compete.
  • Consistently returns capital to shareholders through dividends and buybacks.
  • Expansion through acquisitions, consolidating the fragmented funeral industry.
  • Benefiting from aging demographics and increasing funeral service demand.
  • Aging Baby Boomers – The aging population will naturally increase demand for funeral and memorial services.
  • Industry Consolidation – SCI is acquiring smaller funeral home businesses to strengthen its market position.
  • Cremation Services Growth – SCI is adapting by offering premium cremation services and memorialization options.
  • Inflation & Pricing Strategy – SCI has successfully passed on higher costs through price increases, but how much more can they push?
  • Regulatory Scrutiny – Funeral service pricing and practices face government oversight and potential consumer protection laws.
  • High Debt Load – SCI has taken on significant debt for acquisitions, which could limit financial flexibility.
  • Cremation Shift – While SCI has adapted, the rise of direct cremation (without services) could impact profit margins.
  • Public Perception – Funeral homes can be seen as expensive, and consumer sentiment about costs could pressure SCI’s pricing power.

Boutique funeral home and cemetery operator

Carriage Services Inc (NYSE:CSV)

Carriage Services is a smaller but rapidly growing funeral home and cemetery operator in the U.S. The company focuses on a high-margin, boutique approach, emphasizing premium services and personalized memorialization. With a mix of owned funeral homes and cemeteries, as well as partnerships, Carriage Services offers an alternative to the larger corporate players.

P/E: 18.4

5 Yr Revenue Growth: 7.4%

5 Yr Earnings Growth: 27.7%

5 Yr Dividend Growth: 8.4%

Yield: 1.1%

  • Focus on premium, high-margin funeral services sets it apart from budget competitors.
  • Strong regional presence in key markets with affluent demographics.
  • Acquisition strategy allows it to expand without massive capital investments.
  • Higher profitability than many small competitors due to efficient operations.
  • Pre-need sales provide future revenue visibility and stability.
  • Trades at a lower valuation compared to Service Corporation International.
  • Premium Funeral Services Demand – Families looking for more personalized services could drive Carriage’s revenue growth.
  • Acquisition Strategy Execution – Carriage is actively acquiring funeral homes and cemeteries to scale up.
  • Cremation Memorialization – Carriage is adjusting to the cremation trend by offering high-end cremation memorials.
  • Regional Competition – Competing against both corporate giants and local funeral homes requires careful strategy.
  • Small Scale – Carriage lacks the financial muscle of SCI, making it vulnerable to downturns.
  • Acquisition Integration – Buying funeral homes is one thing, but successfully integrating them is another challenge.
  • Limited Pricing Power – Unlike SCI, Carriage must compete more aggressively on service quality rather than price.
  • Economic Sensitivity – While death care is essential, high-end services may see some cutbacks during economic downturns.