Carriage Services Inc (CSV) stock analysis

P/E below its 5-year median

Carriage Services's P/E of 9.7 is below its own 5-year median of 14.3.

P/E below the industry

Carriage Services's P/E of 9.7 is below the Consumer discretionary median of 19.6.

EV/EBITDA below its 5-year median

Carriage Services's EV/EBITDA of 3.8 is below its 5-year median of 5.3.

P/B below the industry

Carriage Services's price-to-book of 1.57 is below the Consumer discretionary median of 1.80.

Trading below fair value

The share price of $28.47 is below our fair value estimate of $50.15.

Margin of safety over 20%

The price is 43.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 4.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 7.3% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -4.4% over the last twelve months, against a 5-year average of 26.2% a year.

Growing slower than the industry

Revenue grew 1.3% over the last twelve months; the Consumer discretionary median is 2.1%.

Guidance lowered

Carriage Services lowered its 2026 Total revenue outlook on Aug 5, 2026.

Gross margin slipping

Gross margin was 34.1% over the last twelve months, against 35.1% a year earlier.

Return on equity over 15%

Return on equity was 17.7% over the last twelve months and averaged 22.1% over five years.

Return on capital over 10%

Return on invested capital was 27.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Carriage Services's return on equity of 17.7% is above the Consumer discretionary median of 5.6%.

Earnings grew over 5 years

Net income grew 26.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 11.3% over the last twelve months, against a 5-year average of 9.8%.

Net margin above the industry

Carriage Services's net margin of 11.3% is above the Consumer discretionary median of 2.2%.

Low debt

Debt is 2.1% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 2.3% five years ago to 2.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 1023% of total debt.

Interest not well covered

Operating income covers interest expense 3.4 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.45 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.06; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Carriage Services paid dividends worth 1.2% of the share price over the last twelve months.

Yield below Treasuries

The 1.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Carriage Services yields 1.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 15.2% of net income.

Covered by free cash flow

Dividends take 18.6% of free cash flow.