Carriage Services (CSV) AI Stock Analysis

• Market Cap: $693.40M
• Dividend Yield: 1.02%
• Average Volume (3M): 94.71K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.66
• Revenue Growth: 3.55%
• EPS Growth: 73.06%
• Country: US
• Employees: 1,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.74
• Shares Outstanding: 15,698,487
• 10 Day Avg. Volume: 66,049
• 30 Day Avg. Volume: 94,707
• PEG Ratio: -5.79
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 16.62
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 3.08
• Enterprise Value/Gross Profit: 8.78
• Enterprise Value/Ebitda: 10.04
• 1Y Price Target: $60.25
• Price Target Upside: 36.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $48.00 ▲(8.67% Upside)

Carriage Services' overall stock score reflects strong earnings call performance and reasonable valuation, offset by concerns over revenue growth decline and high leverage. The company's strategic initiatives and profitability metrics provide a positive outlook, but technical indicators suggest caution in the short term.

Positive Factors

Strong Financial Revenue Growth

The significant increase in financial revenue, particularly in preneed funeral commission income, indicates robust demand and enhances cash flow stability, supporting long-term growth.

Return to M&A Growth Strategy

Resuming acquisitions strengthens market position and expands service offerings, which can drive long-term revenue growth and competitive advantage.

Debt Reduction Achievements

Significant debt reduction improves financial flexibility and reduces interest expenses, enhancing the company's ability to invest in growth opportunities.

Negative Factors

High Leverage Position

High leverage can limit financial flexibility and increase risk, especially if interest rates rise or economic conditions worsen, impacting long-term stability.

Cemetery Revenue Decline

Declining cemetery revenue suggests challenges in maintaining sales momentum in this segment, potentially affecting overall revenue growth.

Margin Compression Challenges

Margin compression due to inflationary pressures can erode profitability, impacting the company's ability to sustain long-term earnings growth.

Carriage Services Business Overview & Revenue Model

Company Description

Carriage 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 Money

Carriage 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 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 by 47.13% and high leverage ratio with a debt-to-equity ratio of 1.80 are concerning.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 44.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSV, the sentiment is Negative. The current price of 44.17 is below the 20-day moving average (MA) of 45.30, below the 50-day MA of 44.47, and above the 200-day MA of 42.58, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 44.49 is Neutral, neither overbought nor oversold. The STOCH value of 52.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSV.

Carriage Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCI	―	$11.23B	21.94	34.52%	1.56%	2.65%	7.42%
FTDR	―	$4.82B	19.53	109.83%	―	8.56%	31.87%
ROL	―	$26.11B	55.50	36.52%	1.18%	10.38%	6.62%
BFAM	―	$5.59B	32.35	13.19%	―	9.25%	74.86%
HRB	―	$6.49B	11.67	673.21%	3.04%	4.17%	5.56%
CSV	―	$693.40M	13.52	24.38%	1.02%	3.55%	73.06%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Carriage Services Corporate Events

Carriage Services Reports Strong Q2 2025 Earnings

Carriage Services, Inc. is a prominent provider of funeral and cemetery services in the United States, operating numerous funeral homes and cemeteries across several states, known for its commitment to high-quality service and innovation. In its latest earnings report, Carriage Services announced a significant increase in GAAP net income by 85.7% to $5.5 million and a rise in diluted EPS to $0.74, reflecting a strong performance compared to the previous year. The company also reported a slight increase in total funeral consolidated revenue by 2.6% and highlighted strategic acquisitions expected to generate over $15 million in revenue. Key financial metrics include a reduction in the leverage ratio to 4.2x and a decrease in general, administrative, and interest expenses, contributing to a robust net income growth. The company is optimistic about its future, raising its full-year 2025 outlook, anticipating continued growth through strategic acquisitions and improved operational efficiencies.

Carriage Services Earnings Call: Mixed Sentiments and Strategic Growth

The latest earnings call from Carriage Services presented a mixed sentiment, highlighting both significant financial achievements and ongoing challenges. The company reported a surge in GAAP net income and a strategic return to growth mode through acquisitions. However, flat total revenue and margin compressions in both the Funeral and Cemetery segments indicate financial pressures that suggest a cautious outlook despite optimism about future growth and acquisition strategies.