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Carriage Services (CSV)
:CSV
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Carriage Services
(NYSE:CSV)
Rating:64Neutral
Price Target:
$49.00
▲(9.30% Upside)
Positive Factors
Financial Performance
The balance sheet continues to improve with a reduction in total long-term debt and a decreased leverage ratio.
Revenue Growth
Revenue increased 11.3% to $100.7 million, driven primarily by strong growth in cemetery and financial segments.
Stock Valuation
The stock is trading at a discount to its peer group, presenting a potential investment opportunity.
Negative Factors
Stock Performance
The stock has shown significant growth, being up 46% year-to-date, which might lead to overvaluation concerns.
Carriage Services (CSV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$703.76M
Dividend Yield1%
Average Volume (3M)100.34K
Price to Earnings (P/E)13.4
Beta (1Y)0.68
Revenue Growth3.55%
EPS Growth73.06%
CountryUS
Employees1,200
SectorConsumer Cyclical
Sector Strength82
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.74
Shares Outstanding15,698,487
10 Day Avg. Volume118,943
30 Day Avg. Volume100,337
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.78
Enterprise Value/Revenue3.08
Enterprise Value/Gross Profit8.78
Enterprise Value/Ebitda10.04
Forecast
1Y Price Target
$60.33Price Target Upside34.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Carriage Services Business Overview & Revenue Model
Company DescriptionCarriage Services, Inc. provides funeral and cemetery services, and merchandise in the United States. It operates through two segments, Funeral Home Operations and Cemetery Operations. The Funeral Home Operations segment engages in the provision of consultation, funeral home facilities for visitation and memorial services, and transportation services; removal and preparation of remains; and sale of burial and cremation services, and related merchandise, such as caskets and urns. The Cemetery Operations segment provides interment rights for grave sites, lawn crypts, mausoleum spaces, and niche; related cemetery merchandise, including outer burial containers, memorial markers, monuments, and floral placements; and interments, inurnments, and installation of cemetery merchandise services. As of December 31, 2021, it operated 170 funeral homes in 26 states and 31 cemeteries in 11 states. Carriage Services, Inc. was founded in 1991 and is based in Houston, Texas.
How the Company Makes MoneyCarriage Services generates revenue through multiple streams within the death care industry. The primary revenue sources include service fees from funerals and cremations, sales of merchandise such as caskets and urns, and revenue from cemetery plots and related services. Additionally, the company benefits from pre-need sales, where customers pay in advance for funeral and cemetery services, providing a steady cash flow. Strategic partnerships with local funeral homes and cemeteries enhance its service offerings and customer reach. The company's ongoing efforts in expanding its service locations and optimizing operational efficiencies also contribute to its financial performance.
Carriage Services Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlights positive growth in financial revenue, significant increase in GAAP net income, and a strategic return to acquisitions, indicating a strong overall performance. However, there are challenges with cemetery revenue decline and margin compression due to inflationary pressures. Despite these challenges, the positive aspects such as debt reduction and increased guidance suggest confidence in future growth.Q2-2025 Updates
Positive Updates
Increased Revenue in Funeral Segment
Total Funeral operating revenue grew 1.4% to $59.6 million for the quarter, and year-to-date, it grew by $3.9 million or 3.1%.
Strong Financial Revenue Growth
Financial revenue rose 18.8% to $8.2 million, with a 96.2% increase in preneed funeral commission income.
Substantial Increase in GAAP Net Income
GAAP net income for the quarter was $11.7 million, up 85.7% from $6.3 million in the same quarter last year.
Return to M&A Growth Strategy
Carriage Services is back to growth mode with acquisitions under contract, expected to serve more than 2,600 families and generate over $15 million in revenue.
Debt Reduction Achievements
More than $100 million paid to reduce debt over the past two years, with a $7 million payment toward outstanding debt this quarter.
Guidance Increase
Updated guidance anticipates revenues between $410 million to $420 million, showing confidence in future growth.
Negative Updates
Cemetery Revenue Decline
Cemetery operating revenue decreased by 0.6% from the same period last year, attributed to timing differences in preneed sales and delays in new construction projects.
Margin Compression Challenges
Adjusted consolidated EBITDA margin slightly decreased by 30 basis points to 31.6%, with margin compression in both Funeral and Cemetery segments.
Field EBITDA Margin Decline
Funeral field EBITDA margin was 37%, down 250 basis points, and Cemetery field EBITDA margin was 44.9%, down 480 basis points from last year.
Inflationary Cost Pressures
Ongoing impact of inflationary costs, primarily related to salaries and benefits, affecting margins.
Company Guidance
During the Carriage Services Second Quarter 2025 Earnings Conference Call, the company shared its updated guidance and financial performance metrics. Total revenue for the quarter was reported at $102.1 million, with Funeral operating revenue growing 1.4% to $59.6 million and Cemetery operating revenue slightly decreasing by 0.6% to $33.5 million. Financial revenue growth was robust at 18.8%, driven by a 96.2% increase in preneed funeral commission income. The company's GAAP net income rose significantly by 85.7% to $11.7 million, with a GAAP diluted EPS of $0.74, up 85% from the previous year. Adjusted consolidated EBITDA for the quarter was $32.3 million, representing a 1% decline. However, corporate overhead costs improved to 12.2% of revenue, contributing to an adjusted consolidated EBITDA margin of 31.6%. The company updated its full-year guidance with anticipated revenues between $410 million and $420 million, adjusted consolidated EBITDA ranging from $129 million to $134 million, and adjusted diluted EPS between $3.15 and $3.35. Additionally, the leverage ratio is expected to range between 4.1 and 4.2x by year-end. The company is back to growth mode, with plans to close multiple acquisitions this quarter, enhancing its strategic position for future value creation.Carriage Services Financial Statement Overview
Summary
Carriage Services shows strong profitability and cash flow metrics, with a gross profit margin of 66.17% and a net profit margin of 24.25%. However, the significant decline in revenue growth and high leverage ratio are concerning, indicating potential challenges in maintaining financial stability.Income Statement
The income statement shows a mixed performance. The TTM data reveals a significant decline in revenue growth rate, down by 47.13%, indicating potential challenges in maintaining sales momentum. However, the company has strong profitability metrics with a gross profit margin of 66.17% and a net profit margin of 24.25%, suggesting effective cost management and profitability. The EBIT and EBITDA margins are also robust at 35.88% and 53.73%, respectively, highlighting operational efficiency.65
Positive
Balance Sheet
The balance sheet indicates a high leverage position with a debt-to-equity ratio of 1.80 in the TTM period, which, although improved from previous years, still poses a risk. The return on equity is strong at 24.22%, reflecting efficient use of equity to generate profits. However, the equity ratio is relatively low, indicating a higher reliance on debt financing, which could be a concern if interest rates rise or if the company faces financial difficulties.55
Neutral
Cash Flow
Cash flow analysis shows positive trends with a free cash flow growth rate of 21.82% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is slightly above 1, suggesting that the company is generating sufficient cash from operations to cover its net income. The free cash flow to net income ratio is healthy at 71.14%, demonstrating strong cash conversion efficiency.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 407.60M | 404.20M | 382.52M | 370.17M | 375.89M | 329.45M |
| Gross Profit | 142.91M | 143.39M | 124.30M | 119.23M | 142.13M | 105.92M |
| EBITDA | 124.91M | 81.80M | 103.94M | 103.04M | 90.29M | 76.76M |
| Net Income | 52.39M | 32.95M | 33.41M | 41.38M | 33.16M | 16.09M |
Balance Sheet | ||||||
| Total Assets | 1.28B | 1.28B | 1.27B | 1.19B | 1.18B | 1.15B |
| Cash, Cash Equivalents and Short-Term Investments | 1.40M | 1.17M | 1.52M | 1.17M | 1.15M | 889.00K |
| Total Debt | 539.80M | 560.87M | 604.63M | 612.75M | 578.93M | 478.32M |
| Total Liabilities | 1.04B | 1.07B | 1.09B | 1.06B | 1.05B | 905.32M |
| Stockholders Equity | 235.42M | 208.55M | 173.06M | 137.13M | 128.01M | 240.50M |
Cash Flow | ||||||
| Free Cash Flow | 37.00M | 35.90M | 57.55M | 34.94M | 59.36M | 67.72M |
| Operating Cash Flow | 52.01M | 52.00M | 75.59M | 61.02M | 84.25M | 82.92M |
| Investing Cash Flow | 4.78M | -3.64M | -57.00M | -52.49M | -12.54M | -34.42M |
| Financing Cash Flow | -56.90M | -48.72M | -18.23M | -8.51M | -71.45M | -48.32M |
Carriage Services Technical Analysis
Neutral
44.83
Price Trends
45.74
Negative
43.44
Positive
41.45
Positive
Market Momentum
-0.19
Positive
43.11
Neutral
9.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSV, the sentiment is Neutral. The current price of 44.83 is below the 20-day moving average (MA) of 46.02, below the 50-day MA of 45.74, and above the 200-day MA of 41.45, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 9.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CSV.
Carriage Services Risk Analysis
Carriage Services disclosed 13 risk factors in its most recent earnings report. Carriage Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Carriage Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $11.16B | 21.69 | 34.52% | 1.55% | 2.65% | 7.42% | |
75 Outperform | $27.37B | 56.08 | 36.52% | 1.17% | 10.38% | 6.62% | |
75 Outperform | $4.43B | 17.97 | 109.83% | ― | 8.56% | 31.87% | |
74 Outperform | $6.88B | 39.82 | 13.19% | ― | 9.25% | 74.86% | |
67 Neutral | $6.74B | 11.81 | 673.21% | 2.98% | 4.17% | 5.56% | |
64 Neutral | $703.76M | 13.38 | 24.38% | 1.00% | 3.55% | 73.06% | |
61 Neutral | $17.75B | 12.51 | -5.49% | 3.06% | 1.43% | -14.10% |
* Consumer Cyclical Sector Average
Performance Comparison
CSV
Carriage Services
44.50
11.97
36.80%
HRB
H&R Block
50.32
-11.72
-18.89%
ROL
Rollins
56.47
6.98
14.10%
SCI
Service International
79.76
2.62
3.40%
BFAM
Bright Horizons
118.84
-20.23
-14.55%
FTDR
frontdoor
62.00
14.45
30.39%
Carriage Services Corporate Events
Executive/Board ChangesShareholder Meetings
Carriage Services Holds 2025 Shareholders Meeting
Neutral
May 14, 2025
On May 13, 2025, Carriage Services, Inc. held its 2025 Annual Meeting of Shareholders, where key decisions were made regarding the company’s governance and operations. The election of Class II directors resulted in the appointment of Chad Fargason, Carlos R. Quezada, and Dr. Edmondo Robinson for a three-year term. Additionally, the shareholders approved the compensation of Named Executive Officers on an advisory basis and ratified Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are expected to influence the company’s future governance and financial oversight.
The most recent analyst rating on (CSV) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Carriage Services stock, see the CSV Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.