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Carriage Services (CSV)
:CSV

Carriage Services (CSV) AI Stock Analysis

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Carriage Services

(NYSE:CSV)

Rating:75Outperform
Price Target:
$50.00
▲(6.59%Upside)
Carriage Services benefits from strong technical momentum and positive earnings call sentiment. Despite the challenges of high leverage and cash flow declines, the company's strategic initiatives and fair valuation support a favorable outlook.
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)

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 primarily through its Funeral Home and Cemetery Operations. The Funeral Home Operations segment is a major source of income, deriving revenue from the provision of professional services, merchandise sales, and cremation services. This includes fees for conducting funerals, memorial services, and other related events. Additionally, the Cemetery Operations segment contributes to revenue via the sale of burial spaces, cemetery plots, mausoleums, and the provision of perpetual care services. Pre-need sales, where customers pay in advance for future funeral and cemetery services, also constitute a significant revenue stream, providing both immediate and long-term financial benefits. The company's earnings are further supported by strategic acquisitions of funeral homes and cemeteries, expansion of service offerings, and partnerships with local service providers, which enhance its market presence and operational efficiencies.

Carriage Services Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 17.72%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
Carriage Services showed strong revenue growth and improvements in several key areas, including a significant increase in net income and positive trends in preneed insurance contracts. However, there were notable declines in adjusted consolidated EBITDA, cash flow from operations, and adjusted free cash flow. Despite these challenges, the company maintained a positive outlook by focusing on strategic initiatives and potential future growth.
Q1-2025 Updates
Positive Updates
Revenue Growth
Carriage Services reported total revenue of $107.1 million for Q1 2025, an increase of $3.6 million or 3.5% compared to the same quarter last year.
Funeral Operating Revenue Increase
Total funeral operating revenue was $69.1 million, an increase of $3 million or 4.6% over the same period last year.
Cemetery Revenue Growth
Total cemetery revenue for the quarter was $27.9 million, an increase of $1.5 million or 5.8%.
Preneed Insurance Contracts Growth
The quarter ended with 2,541 net preneed insurance contracts, an increase of 332 contracts or 15% compared to the same quarter last year.
Adjusted Diluted EPS Increase
Adjusted diluted EPS for Q1 2025 was $0.96 per share, an increase of $0.21 or 28% compared to the prior year quarter.
Net Income Surge
GAAP net income was $20.9 million, an increase of $13.9 million or 200.1%.
Leverage Ratio Improvement
The company reduced its leverage ratio to 4.2x from 5x at the end of Q1 2024.
Negative Updates
Decrease in Adjusted Consolidated EBITDA
Adjusted consolidated EBITDA was $32.9 million for Q1, a decrease of $653,000 or 1.9%.
Cash Flow from Operations Decline
Cash provided by operating activities was $13.8 million, down $5.9 million from the prior year quarter.
Decrease in Adjusted Free Cash Flow
Adjusted free cash flow for the first quarter was $13.4 million, down $5.1 million from the prior year quarter.
Overhead Increase
Overhead was $15.3 million compared to $19.4 million in the prior year first quarter, with an adjusted overhead $2.6 million higher than the previous year.
Company Guidance
In the first quarter of 2025, Carriage Services reported a total revenue of $107.1 million, marking a 3.5% increase from the previous year. Funeral operating revenue increased by 4.6% to $69.1 million, driven by a 1.8% rise in average revenue per contract and a 2.4% increase in funeral home at-need volume. Cemetery revenue grew by 5.8% to $27.9 million, and total financial revenue rose by 9.1% to $7.4 million. Despite a decrease in adjusted consolidated EBITDA by 1.9% to $32.9 million, the company reported an impressive 28% increase in adjusted diluted EPS to $0.96 per share. While maintaining its current guidance due to economic uncertainties, Carriage Services expects to raise it if momentum continues into the second quarter. The company is also focused on ongoing strategic initiatives, including the implementation of the Trinity system and supply chain optimizations, which are anticipated to drive future growth and efficiencies.

Carriage Services Financial Statement Overview

Summary
Carriage Services demonstrates positive revenue growth and a strong return on equity. However, high leverage and moderate net profit margins pose risks. The company should focus on optimizing debt structure and enhancing profitability.
Income Statement
72
Positive
Carriage Services shows a positive trajectory in revenue growth, with a TTM increase in revenue compared to the previous year. The company has maintained a solid gross profit margin and improved its EBIT margin, indicative of efficient operations. However, the net profit margin is moderate, suggesting room for improvement in cost management or revenue enhancement.
Balance Sheet
65
Positive
The company has a relatively high debt-to-equity ratio, which could indicate potential leverage risks. However, the return on equity is strong, reflecting effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing between debt and equity.
Cash Flow
68
Positive
Carriage Services demonstrates a stable cash flow position, with positive free cash flow and a reasonable operating cash flow to net income ratio. However, the free cash flow growth rate shows some volatility, which indicates potential fluctuations in cash generation capabilities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue409.90M404.20M382.52M370.17M375.89M329.45M
Gross Profit146.10M143.39M124.30M119.23M129.52M105.92M
EBITDA120.25M81.80M103.94M103.04M90.29M76.76M
Net Income46.91M32.95M33.41M41.38M33.16M16.09M
Balance Sheet
Total Assets1.28B1.28B1.27B1.19B1.18B1.15B
Cash, Cash Equivalents and Short-Term Investments4.64M1.17M1.52M1.17M1.15M889.00K
Total Debt423.50M560.87M604.63M612.75M578.93M478.32M
Total Liabilities1.05B1.07B1.09B1.06B1.05B905.32M
Stockholders Equity223.06M208.55M173.06M137.13M128.01M240.50M
Cash Flow
Free Cash Flow30.38M35.90M57.55M34.94M59.36M67.72M
Operating Cash Flow46.09M52.00M75.59M61.02M84.25M82.92M
Investing Cash Flow4.49M-3.64M-57.00M-52.49M-12.54M-34.42M
Financing Cash Flow-47.62M-48.72M-18.23M-8.51M-71.45M-48.32M

Carriage Services Technical Analysis

Technical Analysis Sentiment
Positive
Last Price46.91
Price Trends
50DMA
43.08
Positive
100DMA
41.01
Positive
200DMA
39.02
Positive
Market Momentum
MACD
0.89
Negative
RSI
70.61
Negative
STOCH
94.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSV, the sentiment is Positive. The current price of 46.91 is above the 20-day moving average (MA) of 44.95, above the 50-day MA of 43.08, and above the 200-day MA of 39.02, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 70.61 is Negative, neither overbought nor oversold. The STOCH value of 94.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSV.

Carriage Services Risk Analysis

Carriage Services disclosed 12 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$4.41B19.46132.22%5.53%36.30%
ROROL
78
Outperform
$27.35B57.2937.83%1.17%9.46%9.04%
SCSCI
76
Outperform
$11.64B22.5332.71%1.57%2.40%4.07%
CSCSV
75
Outperform
$736.16M15.6922.96%0.96%5.02%45.34%
73
Outperform
$6.90B43.5912.63%9.71%94.22%
66
Neutral
S$888.58M33.296.05%4.20%6.06%-31.90%
HRHRB
52
Neutral
$7.51B13.74657.13%2.67%3.71%-8.07%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CSV
Carriage Services
46.91
20.92
80.49%
HRB
H&R Block
56.12
3.90
7.47%
ROL
Rollins
56.44
7.14
14.48%
SCI
Service International
81.78
12.96
18.83%
BFAM
Bright Horizons
120.58
10.61
9.65%
FTDR
frontdoor
59.93
26.39
78.68%

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.Date of analysis: Jun 05, 2025