CARRIAGE SERVICES INC (CSV) Stock Fundamental Analysis
NYSE:CSV - New York Stock Exchange, Inc. - US1439051079 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CSV. CSV was compared to 73 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
In the past year CSV was profitable.
In the past year CSV had a positive cash flow from operations.
Each year in the past 5 years CSV has been profitable.
CSV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.16%, CSV is doing good in the industry, outperforming 68.49% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.81%, CSV belongs to the top of the industry, outperforming 89.04% of the companies in the same industry.
CSV has a better Return On Invested Capital (6.21%) than 73.97% of its industry peers.
CSV had an Average Return On Invested Capital over the past 3 years of 4.77%. This is significantly below the industry average of 12.00%.
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's Profit Margin of 10.39% is fine compared to the rest of the industry. CSV outperforms 76.71% of its industry peers.
In the last couple of years the Profit Margin of CSV has grown nicely.
CSV has a better Operating Margin (21.55%) than 89.04% of its industry peers.
CSV's Operating Margin has improved in the last couple of years.
CSV has a Gross Margin (35.45%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CSV has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CSV is destroying value.
CSV has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CSV has less shares outstanding
The debt/assets ratio for CSV has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that CSV is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CSV (1.35) is better than 60.27% of its industry peers.
CSV has a debt to FCF ratio of 17.47. This is a negative value and a sign of low solvency as CSV would need 17.47 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.47, CSV is in the better half of the industry, outperforming 61.64% of the companies in the same industry.
CSV has a Debt/Equity ratio of 2.37. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.37, CSV is not doing good in the industry: 69.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 17.47 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.86
WACC7.23%
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.
Looking at the Current ratio, with a value of 0.95, CSV is in line with its industry, outperforming 41.10% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that CSV may have some problems paying its short term obligations.
With a Quick ratio value of 0.80, CSV is not doing good in the industry: 60.27% of the companies in the same industry are doing better.
| 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.
CSV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.13% yearly.
The Revenue has grown by 30.93% in the past year. This is a very strong growth!
Measured over the past years, CSV shows a quite strong growth in Revenue. The Revenue has been growing by 8.08% on average per year.
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
The Earnings Per Share is expected to grow by 12.93% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.97% on average over the next years.
EPS Next Y24.59%
EPS Next 2Y12.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y1.97%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.80, CSV is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CSV indicates a rather cheap valuation: CSV is cheaper than 82.19% of the companies listed in the same industry.
CSV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
With a Price/Forward Earnings ratio of 12.53, CSV is valued correctly.
CSV's Price/Forward Earnings ratio is rather cheap when compared to the industry. CSV is cheaper than 83.56% of the companies in the same industry.
CSV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.8 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSV is valued a bit cheaper than the industry average as 75.34% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSV indicates a somewhat cheap valuation: CSV is cheaper than 68.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.79 | ||
| EV/EBITDA | 8.84 |
4.3 Compensation for Growth
The 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 12.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)0.92
EPS Next 2Y12.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CSV has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
CSV's Dividend Yield is rather good when compared to the industry average which is at 4.26. CSV pays more dividend than 86.30% of the companies in the same industry.
With a Dividend Yield of 1.05, CSV pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
On average, the dividend of CSV grows each year by 8.45%, which is quite nice.
CSV has paid a dividend for at least 10 years, which is a reliable track record.
CSV has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.45%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
12.89% of the earnings are spent on dividend by CSV. This is a low number and sustainable payout ratio.
The dividend of CSV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.89%
EPS Next 2Y12.93%
EPS Next 3YN/A
42.19
+0.02 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners72.64%
Inst Owner Change6.98%
Ins Owners2.1%
Ins Owner Change5.71%
Market Cap661.96M
Analysts85
Price Target53.04 (25.72%)
Short Float %2.23%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)1.46%
PT rev (3m)6.12%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)0.93%
EPS NY rev (1m)1.45%
EPS NY rev (3m)16.17%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-2.17%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.8 | ||
| Fwd PE | 12.53 | ||
| P/S | 1.29 | ||
| P/FCF | 21.79 | ||
| P/OCF | 14.36 | ||
| P/B | 2.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.84 |
EPS(TTM)2.85
EY6.76%
EPS(NY)3.37
Fwd EY7.98%
FCF(TTM)1.94
FCFY4.59%
OCF(TTM)2.94
OCFY6.96%
SpS32.59
BVpS14.22
TBVpS-14.56
PEG (NY)0.6
PEG (5Y)0.92
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 | 1.35 |
F-Score7
WACC7.23%
ROIC/WACC0.86
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 Y24.59%
EPS Next 2Y12.93%
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 2Y1.97%
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%