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Carriage Services (CSV)
NYSE:CSV
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Carriage Services
(NYSE:CSV)
68Neutral
Positive Factors
Financial Performance
Full-year 2024 guidance raised, reflecting confidence after outperforming expectations in previous quarters.
Investment Rating
Reiterated OUTPERFORM investment rating and increased price target to $45, indicating expected stock price growth.
Revenue Growth
Revenue increased 11.3% to $100.7 million, primarily driven by strong growth in cemetery and financial segments.
Negative Factors
Valuation Concerns
The stock is trading at a discount to its peer group, presenting a potential investment opportunity.
Carriage Services (CSV) vs. S&P 500 (SPY)
Market Cap
$588.13M
Dividend Yield1.2%
Average Volume (3M)118.99K
Price to Earnings (P/E)17.8
Beta (1Y)0.77
Revenue Growth6.17%
EPS Growth-2.98%
CountryUS
Employees1,200
SectorConsumer Cyclical
Sector Strength60
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)2.10
Shares Outstanding15,679,407
10 Day Avg. Volume90,032
30 Day Avg. Volume118,986
Financial Highlights & Ratios
PEG Ratio1.31
Price to Book (P/B)N/A
Price to Sales (P/S)1.48
Price to Cash Flow (P/CF)16.20
P/FCF Ratio5.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$51.50Price Target Upside39.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 Operations and Cemetery Operations. In the Funeral Home Operations segment, the company provides traditional funeral services, cremation services, and other related services, which include embalming, transportation, and use of facilities for visitation and memorial services. Revenue is earned from service fees and the sale of funeral merchandise such as caskets and urns. In the Cemetery Operations segment, Carriage Services generates income from the sale of cemetery property, such as burial plots, mausoleum spaces, and niches for cremated remains. Additionally, they offer memorialization products and services, such as headstones and markers, and provide perpetual care and maintenance services for their cemetery grounds. The company may also engage in pre-need sales, where customers prepay for services and merchandise to be delivered in the future, providing an additional revenue stream. Strategic partnerships and acquisitions of existing funeral homes and cemeteries also play a significant role in Carriage Services' growth and revenue generation.
Carriage Services Financial Statement Overview
Summary
Carriage Services exhibits strong profitability and cash generation capabilities, although it is constrained by high leverage. Revenue growth has been inconsistent, but the company maintains solid margins. While the balance sheet shows significant debt, the firm effectively manages its equity and generates substantial cash flow, providing a buffer against financial risks.Income Statement
The income statement shows solid profitability with a 9.6% net profit margin in 2023, a slight decrease from 11.1% in 2022. Revenue growth was volatile, with a decrease in 2023 compared to 2022, but overall, there has been growth from 2019 to 2023, showcasing resilience. The gross profit margin remains strong, suggesting efficient cost management.75
Positive
Balance Sheet
The balance sheet reflects a relatively high debt-to-equity ratio of 2.02 in 2023, indicating significant leverage. However, equity has been growing, and the company maintains a stable equity ratio of around 13.6% in 2023, suggesting some balance in financial structure despite high debt levels. The return on equity for 2023 is 19.3%, indicating effective use of equity capital.68
Positive
Cash Flow
Cash flow analysis shows a robust operating cash flow to net income ratio of 1.56 in 2023, reflecting strong cash generation. Free cash flow decreased significantly in 2023 compared to 2022, impacting growth rates. The company has been able to generate positive free cash flow consistently, which is a positive indicator of financial health.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 34.22M | 382.52M | 370.17M | 375.89M | 329.45M | Gross Profit |
| 143.39M | 124.30M | 119.23M | 129.52M | 105.92M | EBIT |
| 81.80M | 80.98M | 79.73M | 93.66M | 78.82M | EBITDA |
| 81.80M | 103.94M | 103.04M | 90.29M | 76.76M | Net Income Common Stockholders |
| 32.95M | 33.41M | 41.38M | 33.16M | 16.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.17M | 1.52M | 1.17M | 1.15M | 889.00K | Total Assets |
| 1.28B | 1.27B | 1.19B | 1.18B | 1.15B | Total Debt |
| 420.59M | 604.63M | 612.75M | 578.93M | 478.32M | Net Debt |
| 419.43M | 603.11M | 611.58M | 577.78M | 477.43M | Total Liabilities |
| 1.07B | 1.09B | 1.06B | 1.05B | 905.32M | Stockholders Equity |
| 208.55M | 173.06M | 137.13M | 128.01M | 240.50M |
| Cash Flow | Free Cash Flow | |||
| 35.90M | 57.55M | 34.94M | 59.36M | 67.72M | Operating Cash Flow |
| 52.00M | 75.59M | 61.02M | 84.25M | 82.92M | Investing Cash Flow |
| -3.64M | -57.00M | -52.49M | -12.54M | -34.42M | Financing Cash Flow |
| -48.72M | -18.23M | -8.51M | -71.45M | -48.32M |
Carriage Services Technical Analysis
Negative
36.97
Price Trends
39.60
Negative
39.61
Negative
35.37
Positive
Market Momentum
-0.27
Negative
47.63
Neutral
73.09
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 36.97 is below the 20-day moving average (MA) of 38.24, below the 50-day MA of 39.60, and above the 200-day MA of 35.37, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 73.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $11.11B | 21.81 | 32.22% | 1.58% | 2.11% | 0.05% | |
68 Neutral | $588.13M | 17.81 | 17.04% | 1.20% | 6.17% | -2.98% | |
66 Neutral | $2.90B | 11.94 | 67.31% | 0.33% | -0.56% | 63.92% | |
59 Neutral | $11.18B | 10.04 | -1.58% | 3.96% | 1.31% | -16.97% | |
47 Neutral | $618.75M | ― | -13.19% | 4.90% | -7.12% | -284.19% | |
43 Neutral | $501.13M | ― | -65.36% | 21.88% | -9.70% | -5576.16% |
* Consumer Cyclical Sector Average
Performance Comparison
CSV
Carriage Services
36.97
11.82
47.00%
CNK
Cinemark Holdings
25.70
6.58
34.41%
HALL
Hallmark Financial Services
0.05
-0.75
-93.75%
MATW
Matthews International
19.88
-7.18
-26.53%
SCI
Service International
75.08
3.79
5.32%
XRX
Xerox
4.12
-11.51
-73.64%
Carriage Services Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -10.20% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong financial performance for the full year, with significant growth in cemetery revenue and adjusted EBITDA, as well as a notable reduction in debt. However, the fourth quarter faced challenges with a decrease in total revenue and EBITDA, primarily due to lower funeral volumes and increased overhead costs. Despite these challenges, the company remains optimistic about its strategic initiatives and future growth.Highlights
Cemetery Operating Revenue Increase
Cemetery operating revenue for the fourth quarter was $29.8 million, an increase of $3.1 million or 11.6% compared to the previous year, driven by an 8.4% increase in preneed interments sold and a 9.2% increase per preneed cemetery contract.
Full Year Total Revenue Growth
Total revenue for the full year finished at $404.2 million, an increase of $21.7 million or 5.7%, primarily driven by a 22.9% increase in preneed interment rights sold and a 7.3% increase in the average price per preneed interment rights sold.
Adjusted Consolidated EBITDA Growth
For the full year, adjusted consolidated EBITDA finished at $126.2 million, an increase of $13 million or 11.5%. Adjusted consolidated EBITDA margin for the full year increased by 160 basis points to 31.2%.
Debt Reduction
Carriage Services paid down its credit facility by $42.1 million, reducing the leverage ratio from 5.1x to 4.3x by the end of 2024.
EPS Increase
Adjusted diluted EPS for the full year was $2.65 per share, an increase of $0.46 per share or 21% from the previous year.
Lowlights
Fourth Quarter Revenue Decline
Fourth quarter total revenue was $97.7 million, a decrease of $1.1 million or 1.1% compared to the same quarter last year, primarily due to a 7.3% decrease in funeral volumes.
Decrease in Adjusted Consolidated EBITDA for Q4
Adjusted consolidated EBITDA for the fourth quarter was $29.3 million, a decrease of $3.1 million or 9.6% due to lower revenue in the funeral segment.
Cash Flow Decline
Cash provided by operating activities for the fourth quarter was $9.3 million, down $4.4 million from the prior year quarter, and adjusted free cash flow was $8.9 million, down $3.9 million from the previous year.
Increase in Overhead Expenses
Overhead expenses for the fourth quarter were $12.9 million, an increase of $1 million from the prior year quarter, driven by costs related to Project Trinity.
Company Guidance
During the Carriage Services Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for 2025, projecting revenues in the range of $400 million to $410 million, representing a modest organic growth in the low single digits when excluding divestitures. They anticipate an adjusted consolidated EBITDA of $128 million to $133 million, with adjusted diluted EPS expected to range between $3.10 and $3.30, driven by lower interest rates and a reduced effective tax rate. The company aims to maintain a leverage ratio between 3.7x and 3.8x by the end of 2025. Additionally, Carriage Services has planned divestitures expected to generate approximately $25 million in proceeds, which will be used to reduce debt and potentially fund acquisitions. Capital expenditures for 2025 are forecasted between $19 million and $21 million, with an emphasis on growth opportunities, particularly in cemetery operations.Carriage Services Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Carriage Services Appoints John Enwright as CFO
Positive
Dec 5, 2024
Carriage Services, Inc. is thrilled to announce John Enwright as their new Senior Vice President, Chief Financial Officer, and Treasurer, effective January 2025. With over 25 years of experience in financial leadership within omnichannel retail, Enwright has a history of driving innovation and achieving results at major publicly traded companies. His strategic insights and leadership will be pivotal as Carriage focuses on disciplined capital allocation, purposeful growth, and operational excellence. This appointment reflects Carriage’s commitment to enhancing their leadership team to support their ambitious growth objectives.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Carriage Services’ Strong Q3 Boosts Revenue Forecast
Positive
Oct 30, 2024
Carriage Services, Inc. reported a remarkable third quarter in 2024, achieving an 11.3% increase in revenue driven by significant growth in cemetery preneed sales and funeral revenue per contract. The company’s net income surged by 112.4%, with GAAP diluted EPS doubling from the previous year. Carriage paid down $15 million in debt, improving its leverage ratio. With strong performance, the company raised its full-year revenue guidance to $395-$405 million and appointed Edmondo Robinson as an independent director to bolster growth strategies.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.