CARRIAGE SERVICES INC (CSV) Stock Fundamental Analysis
NYSE:CSV - New York Stock Exchange, Inc. - US1439051079 - Common Stock - Currency: USD
CSV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 72 industry peers in the Diversified Consumer Services industry. While CSV has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on CSV. CSV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CSV had positive earnings in the past year.
CSV had a positive operating cash flow in the past year.
Each year in the past 5 years CSV has been profitable.
In the past 5 years CSV always reported a positive cash flow from operatings.
1.2 Ratios
CSV has a Return On Assets of 4.16%. This is in the better half of the industry: CSV outperforms 65.28% of its industry peers.
Looking at the Return On Equity, with a value of 23.81%, CSV belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.21%, CSV is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CSV is significantly below the industry average of 10.64%.
The 3 year average ROIC (4.77%) for CSV is below the current ROIC(6.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 23.81% | ||
| ROIC | 6.21% |
ROA(3y)2.87%
ROA(5y)2.56%
ROE(3y)21.63%
ROE(5y)19.48%
ROIC(3y)4.77%
ROIC(5y)5.01%
1.3 Margins
CSV has a Profit Margin of 10.39%. This is in the better half of the industry: CSV outperforms 72.22% of its industry peers.
CSV's Profit Margin has improved in the last couple of years.
CSV has a better Operating Margin (21.55%) than 87.50% of its industry peers.
CSV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.45%, CSV is in line with its industry, outperforming 40.28% of the companies in the same industry.
CSV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.55% | ||
| PM (TTM) | 10.39% | ||
| GM | 35.45% |
OM growth 3Y-5.95%
OM growth 5Y1.81%
PM growth 3Y-2.97%
PM growth 5Y8.75%
GM growth 3Y0.98%
GM growth 5Y4.08%
2. Health
2.1 Basic Checks
CSV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CSV has more shares outstanding
The number of shares outstanding for CSV has been reduced compared to 5 years ago.
The debt/assets ratio for CSV has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that CSV is in the distress zone and has some risk of bankruptcy.
CSV's Altman-Z score of 1.39 is in line compared to the rest of the industry. CSV outperforms 58.33% of its industry peers.
The Debt to FCF ratio of CSV is 17.47, which is on the high side as it means it would take CSV, 17.47 years of fcf income to pay off all of its debts.
CSV has a Debt to FCF ratio (17.47) which is comparable to the rest of the industry.
CSV has a Debt/Equity ratio of 2.37. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CSV (2.37) is worse than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 17.47 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.79
WACC7.81%
2.3 Liquidity
CSV has a Current Ratio of 0.95. This is a bad value and indicates that CSV is not financially healthy enough and could expect problems in meeting its short term obligations.
CSV's Current ratio of 0.95 is on the low side compared to the rest of the industry. CSV is outperformed by 61.11% of its industry peers.
A Quick Ratio of 0.80 indicates that CSV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.80, CSV is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
CSV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.75%, which is quite good.
The Earnings Per Share has been growing by 16.13% on average over the past years. This is quite good.
CSV shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.93%.
The Revenue has been growing by 8.08% on average over the past years. This is quite good.
EPS 1Y (TTM)19.75%
EPS 3Y-4.7%
EPS 5Y16.13%
EPS Q2Q%28%
Revenue 1Y (TTM)30.93%
Revenue growth 3Y2.45%
Revenue growth 5Y8.08%
Sales Q2Q%3.46%
3.2 Future
CSV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.21% yearly.
CSV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.06% yearly.
EPS Next Y23.19%
EPS Next 2Y13.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y2.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.35, CSV is valued correctly.
Based on the Price/Earnings ratio, CSV is valued a bit cheaper than 79.17% of the companies in the same industry.
CSV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
Based on the Price/Forward Earnings ratio of 13.78, the valuation of CSV can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSV indicates a somewhat cheap valuation: CSV is cheaper than 79.17% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, CSV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.78 |
4.2 Price Multiples
CSV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CSV is cheaper than 72.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CSV is valued a bit cheaper than 68.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.08 | ||
| EV/EBITDA | 9.36 |
4.3 Compensation for Growth
CSV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CSV has an outstanding profitability rating, which may justify a higher PE ratio.
CSV's earnings are expected to grow with 13.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)1.01
EPS Next 2Y13.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, CSV is not a good candidate for dividend investing.
CSV's Dividend Yield is rather good when compared to the industry average which is at 3.54. CSV pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, CSV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of CSV is nicely growing with an annual growth rate of 8.45%!
CSV has been paying a dividend for at least 10 years, so it has a reliable track record.
CSV has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.45%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
CSV pays out 12.89% of its income as dividend. This is a sustainable payout ratio.
CSV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.89%
EPS Next 2Y13.21%
EPS Next 3YN/A
46.61
-0.2 (-0.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners75.35%
Inst Owner Change0%
Ins Owners2.64%
Ins Owner Change5.68%
Market Cap731.31M
Analysts85
Price Target53.04 (13.8%)
Short Float %3.25%
Short Ratio4.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend0.45
Dividend Growth(5Y)8.45%
DP12.89%
Div Incr Years0
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.21%
Min EPS beat(2)14.06%
Max EPS beat(2)20.36%
EPS beat(4)4
Avg EPS beat(4)26.42%
Min EPS beat(4)14.06%
Max EPS beat(4)52.08%
EPS beat(8)6
Avg EPS beat(8)18.85%
EPS beat(12)8
Avg EPS beat(12)10.59%
EPS beat(16)11
Avg EPS beat(16)11.92%
Revenue beat(2)2
Avg Revenue beat(2)1.02%
Min Revenue beat(2)0.01%
Max Revenue beat(2)2.02%
Revenue beat(4)4
Avg Revenue beat(4)3.99%
Min Revenue beat(4)0.01%
Max Revenue beat(4)7.27%
Revenue beat(8)7
Avg Revenue beat(8)2.91%
Revenue beat(12)9
Avg Revenue beat(12)2.01%
Revenue beat(16)12
Avg Revenue beat(16)2.9%
PT rev (1m)0%
PT rev (3m)1.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.78 | ||
| P/S | 1.43 | ||
| P/FCF | 24.08 | ||
| P/OCF | 15.87 | ||
| P/B | 3.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.36 |
EPS(TTM)2.85
EY6.11%
EPS(NY)3.38
Fwd EY7.26%
FCF(TTM)1.94
FCFY4.15%
OCF(TTM)2.94
OCFY6.3%
SpS32.59
BVpS14.22
TBVpS-14.56
PEG (NY)0.71
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.16% | ||
| ROE | 23.81% | ||
| ROCE | 9.01% | ||
| ROIC | 6.21% | ||
| ROICexc | 6.23% | ||
| ROICexgc | 9.9% | ||
| OM | 21.55% | ||
| PM (TTM) | 10.39% | ||
| GM | 35.45% | ||
| FCFM | 5.94% |
ROA(3y)2.87%
ROA(5y)2.56%
ROE(3y)21.63%
ROE(5y)19.48%
ROIC(3y)4.77%
ROIC(5y)5.01%
ROICexc(3y)4.78%
ROICexc(5y)5.02%
ROICexgc(3y)7.7%
ROICexgc(5y)8.1%
ROCE(3y)6.93%
ROCE(5y)7.28%
ROICexcg growth 3Y-6.67%
ROICexcg growth 5Y6.94%
ROICexc growth 3Y-6.46%
ROICexc growth 5Y7.65%
OM growth 3Y-5.95%
OM growth 5Y1.81%
PM growth 3Y-2.97%
PM growth 5Y8.75%
GM growth 3Y0.98%
GM growth 5Y4.08%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 17.47 | ||
| Debt/EBITDA | 3.94 | ||
| Cap/Depr | 64.94% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 3.77 | ||
| Cash Conversion | 34.3% | ||
| Profit Quality | 57.2% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.39 |
F-Score7
WACC7.81%
ROIC/WACC0.79
Cap/Depr(3y)90.07%
Cap/Depr(5y)92.54%
Cap/Sales(3y)5.25%
Cap/Sales(5y)5.4%
Profit Quality(3y)122.9%
Profit Quality(5y)194.26%
High Growth Momentum
Growth
EPS 1Y (TTM)19.75%
EPS 3Y-4.7%
EPS 5Y16.13%
EPS Q2Q%28%
EPS Next Y23.19%
EPS Next 2Y13.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)30.93%
Revenue growth 3Y2.45%
Revenue growth 5Y8.08%
Sales Q2Q%3.46%
Revenue Next Year1.2%
Revenue Next 2Y2.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y33.84%
EBIT growth 3Y-3.65%
EBIT growth 5Y10.04%
EBIT Next Year61.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-35.25%
FCF growth 3Y-15.44%
FCF growth 5Y5.22%
OCF growth 1Y-35.18%
OCF growth 3Y-14.86%
OCF growth 5Y3.77%