Carriage Services, Inc. (CSV) | Investment Case

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on CSV

Carriage Services' recent performance faced challenges due to mixed profitability in recent years. Despite this, the company's Q3 2025 earnings call highlighted strong top-line growth and demographic tailwinds. The company reported quarterly earnings of $0.75 per share, beating estimates. Its recent acquisitions and expansion into new markets signal a return to growth mode. The 2025 guidance points to higher revenue and improved adjusted earnings. According to Zacks, the company was upgraded to a Strong Buy, citing growing optimism about its earnings prospects.

1.c. Company Highlights

Last Price	41.89
Change Percentage	0.10%
Open	41.65
Previous Close	41.85
Market Cap ( Millions)	660
Volume	32558
Year High	49.41
Year Low	35.51
M A 50	43.72
M A 200	42.89

FCF Yield	5.87%
Dividend Yield	1.07%
ROE	21.60%
Debt / Equity	174.45%
Net Debt / EBIDTA	353.98%
Price To Book	2.66
Price Earnings Ratio	13.14
Price To FCF	17.02
Price To sales	2.08
EV / EBITDA	9.08

2. Strong Q3 Earnings Reflect Continued Momentum

The company's financial performance in Q3 2025 was impressive, with total operating revenue reaching $101.3 million, a 5.2% increase year-over-year, driven primarily by a 21.4% rise in preneed cemetery sales. The cemetery segment continues to be a key value driver, with operating revenue growing by 12.6% to $35.6 million. Adjusted diluted earnings per share (EPS) came in at $0.75, beating estimates of $0.72, representing a 17.2% increase from the same quarter last year. Adjusted consolidated EBITDA margin expanded by 160 basis points to 32.1%, reflecting strong operating leverage.

Publication Date: Nov -12

                                    📋 Highlights
                                    Revenue Growth Driven by Preneed Sales:
                                                Total operating revenue rose to $101.3M (+5.2 YoY), fueled by 21.4% YoY preneed cemetery sales increase.
Cemetery Segment Expansion:
                                                Operating revenue reached $35.6M (+12.6 YoY), highlighting strategic investments in property and tech.
Insurance-Funded Sales Milestone:
                                                Preneed funeral sales hit $7M in September, contributing 50.5% to financial revenue growth.
EBITDA Momentum:
                                                Field EBITDA grew to $46.3M (+3.1 YoY), recovering from earlier permit delays in cemetery sales.
EPS Growth:
                                                Adjusted diluted EPS increased to $0.75 (+17.2 YoY), driven by operational efficiency and capital discipline.

                                

Segment Performance

The cemetery segment's strong performance underscores the effectiveness of the company's strategic objectives, with a significant increase in preneed cemetery sales. The insurance-funded pre-arranged funeral sales strategy is also making good progress, with September setting an all-time high and exceeding $7 million in preneed funeral sales. This bodes well for future growth, as the company continues to invest in property development, technology-enabled sales capabilities, and community relationships.

Growth Prospects

Looking ahead, the company expects to maintain its momentum, driven by the launch of Sales Edge 2.0, its upgraded CRM platform, and the introduction of Titan, its AI-powered sales agent. The updated outlook anticipates revenues in the range of $413 million to $417 million, with adjusted diluted EPS expected to be between $3.25 and $3.30. Analysts estimate revenue growth at 3.3% for next year, indicating a steady trajectory.

Valuation

With a P/E Ratio of 13.07 and an EV/EBITDA of 9.06, the stock appears reasonably valued. The ROE of 21.6% and ROIC of 5.36% indicate a strong return on equity and invested capital, respectively. The Net Debt / EBITDA ratio of 3.54 suggests that the company's leverage is manageable. Overall, the valuation metrics suggest that the market has a positive outlook on the company's prospects, but there is still room for growth.

3. NewsRoom

Geode Capital Management LLC Boosts Holdings in Carriage Services, Inc. $CSV

Dec -02

Source: defenseworld.net

Boston Partners Has $9.27 Million Stake in Carriage Services, Inc. $CSV

Nov -29

Source: defenseworld.net

Carriage Services, Inc. (CSV) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

Carriage Services (CSV) Tops Q3 Earnings and Revenue Estimates

Nov -06

Source: zacks.com

Carriage Services Announces Strong Third Quarter Results and Confirms the Midpoint of the 2025 Outlook

Nov -05

Source: globenewswire.com

Carriage Services (CSV) to Release Earnings on Wednesday

Nov -03

Source: defenseworld.net

Carriage Services Is Coming Back To Life

Nov -03

Source: seekingalpha.com

Carriage Services Announces 2025 Third Quarter Earnings Release and Conference Call Schedule

Oct -22

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.92%)

6. Segments

Funeral

Expected Growth: 0.8%

Carriage Services, Inc.'s funeral segment growth of 0.8 is driven by increasing demand for death care services, aging population, and strategic acquisitions. Additionally, the company's focus on expanding its funeral home network, improving operating efficiencies, and enhancing customer experience also contribute to its growth.

Cemetery

Expected Growth: 1.2%

The 1.2% growth in Cemetery segment of Carriage Services, Inc. is driven by increasing demand for funeral services, aging population, and strategic acquisitions. Additionally, the company's focus on expanding its cemetery portfolio, improving operating efficiencies, and enhancing customer experience also contribute to the growth.

7. Detailed Products

Funeral Homes

Carriage Services, Inc. owns and operates funeral homes that provide funeral, cremation, and memorialization services to families.

Cemeteries

The company operates cemeteries that provide burial spaces, mausoleums, and columbaria for families to memorialize their loved ones.

Floral and Memorial Products

Carriage Services, Inc. offers a range of floral and memorial products, including caskets, urns, and other memorialization items.

Preneed Funeral Insurance

The company offers preneed funeral insurance policies that allow individuals to pre-plan and pre-pay for their funeral expenses.

8. Carriage Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Carriage Services, Inc. is medium because while there are alternative modes of transportation, they are not always convenient or cost-effective.

Bargaining Power Of Customers

The bargaining power of customers is high because they have many options for transportation and can easily switch to a competitor if they are not satisfied with the service.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low because Carriage Services, Inc. is a large company and has many suppliers to choose from, giving it bargaining power.

Threat Of New Entrants

The threat of new entrants is low because of the high barriers to entry in the transportation industry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry is high because the transportation industry is highly competitive, with many companies competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	77.11%
Debt Cost	8.29%
Equity Weight	22.89%
Equity Cost	8.29%
WACC	8.29%
Leverage	336.88%

11. Quality Control: Carriage Services, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Carriage Services

A-Score: 6.0/10

Value: 5.0

Growth: 5.9

Quality: 5.4

Yield: 2.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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A-Score: 5.9/10

Value: 6.6

Growth: 1.8

Quality: 5.5

Yield: 10.0

Momentum: 5.5

Volatility: 6.0

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Miller Industries

A-Score: 5.2/10

Value: 7.3

Growth: 6.4

Quality: 5.7

Yield: 4.0

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

Mister Car Wash

A-Score: 4.2/10

Value: 4.3

Growth: 7.4

Quality: 5.3

Yield: 0.0

Momentum: 3.0

Volatility: 5.3

1-Year Total Return ->

Hamilton Beach Brands

A-Score: 4.2/10

Value: 6.2

Growth: 5.6

Quality: 5.0

Yield: 6.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

Medifast

A-Score: 4.1/10

Value: 7.6

Growth: 2.1

Quality: 5.6

Yield: 3.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

26.21%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.29%

Carriage Services, Inc. - US1439051079

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CSV

1.c. Company Highlights

Average Growth

Stable Momentum

Medium Volatility

Earnings Beats

Revenues Beats

Fairly Valued

Revenues Miss

Strong Momentum

Less Volatile

Better Quality

2. Strong Q3 Earnings Reflect Continued Momentum

Segment Performance

Growth Prospects

Valuation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.92%)

6. Segments

Funeral

Expected Growth: 0.8%

Cemetery

Expected Growth: 1.2%

7. Detailed Products

Funeral Homes

Cemeteries

Floral and Memorial Products

Preneed Funeral Insurance

8. Carriage Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Carriage Services, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

41.89$

Current Price

41.89$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA