CARRIAGE SERVICES INC (CSV) Stock Fundamental Analysis
NYSE:CSV - New York Stock Exchange, Inc. - US1439051079 - Common Stock - Currency: USD
Overall CSV gets a fundamental rating of 5 out of 10. We evaluated CSV 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. CSV is not valued too expensively and it also shows a decent growth rate. Finally CSV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CSV had positive earnings in the past year.
In the past year CSV had a positive cash flow from operations.
In the past 5 years CSV has always 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 3.08%, CSV is doing good in the industry, outperforming 69.44% of the companies in the same industry.
With an excellent Return On Equity value of 18.89%, CSV belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
CSV's Return On Invested Capital of 5.94% is fine compared to the rest of the industry. CSV outperforms 72.22% 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 11.60%.
The last Return On Invested Capital (5.94%) for CSV is above the 3 year average (4.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 18.89% | ||
| ROIC | 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%
1.3 Margins
CSV has a Profit Margin of 7.76%. This is in the better half of the industry: CSV outperforms 69.44% of its industry peers.
CSV's Profit Margin has improved in the last couple of years.
CSV has a Operating Margin of 20.76%. This is amongst the best in the industry. CSV outperforms 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 35.58%, CSV is doing worse than 61.11% of the companies in the same industry.
CSV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.76% | ||
| PM (TTM) | 7.76% | ||
| GM | 35.58% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
CSV has an Altman-Z score of 1.27. This is a bad value and indicates that CSV is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CSV (1.27) is better than 61.11% of its industry peers.
CSV has a debt to FCF ratio of 15.23. This is a negative value and a sign of low solvency as CSV would need 15.23 years to pay back of all of its debts.
The Debt to FCF ratio of CSV (15.23) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.60 is on the high side and indicates that CSV has dependencies on debt financing.
CSV has a Debt to Equity ratio of 2.60. This is in the lower half of the industry: CSV underperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.6 | ||
| Debt/FCF | 15.23 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.73
WACC8.17%
2.3 Liquidity
CSV has a Current Ratio of 0.77. This is a bad value and indicates that CSV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.77, CSV is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
CSV has a Quick Ratio of 0.77. This is a bad value and indicates that CSV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.63, CSV is not doing good in the industry: 68.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.55% over the past year.
The Earnings Per Share has been growing by 16.13% on average over the past years. This is quite good.
Looking at the last year, CSV shows a very strong growth in Revenue. The Revenue has grown by 32.72%.
CSV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.08% yearly.
EPS 1Y (TTM)20.55%
EPS 3Y-4.7%
EPS 5Y16.13%
EPS Q2Q%-19.48%
Revenue 1Y (TTM)32.72%
Revenue growth 3Y2.45%
Revenue growth 5Y8.08%
Sales Q2Q%-1.15%
3.2 Future
Based on estimates for the next years, CSV will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.89% on average per year.
The Revenue is expected to grow by 1.97% on average over the next years.
EPS Next Y22.81%
EPS Next 2Y14.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.27%
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.
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
CSV is valuated correctly with a Price/Earnings ratio of 14.95.
Based on the Price/Earnings ratio, CSV is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CSV to the average of the S&P500 Index (28.29), we can say CSV is valued slightly cheaper.
CSV is valuated correctly with a Price/Forward Earnings ratio of 12.18.
Based on the Price/Forward Earnings ratio, CSV is valued cheaper than 86.11% 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 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 12.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSV is valued a bit cheaper than 75.00% of the companies in the same industry.
CSV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CSV is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.24 | ||
| EV/EBITDA | 8.98 |
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 a very decent profitability rating, which may justify a higher PE ratio.
CSV's earnings are expected to grow with 14.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)0.93
EPS Next 2Y14.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CSV has a Yearly Dividend Yield of 1.14%.
Compared to an average industry Dividend Yield of 5.08, CSV pays a better dividend. On top of this CSV pays more dividend than 86.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, CSV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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
CSV pays out 17.28% of its income as dividend. This is a sustainable payout ratio.
The dividend of CSV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.28%
EPS Next 2Y14.89%
EPS Next 3YN/A
39.48
+0.68 (+1.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners72.64%
Inst Owner Change0.12%
Ins Owners2.1%
Ins Owner Change6.14%
Market Cap619.05M
Analysts85
Price Target52.28 (32.42%)
Short Float %1.79%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend0.45
Dividend Growth(5Y)8.45%
DP17.28%
Div Incr Years0
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.22%
Min EPS beat(2)20.36%
Max EPS beat(2)52.08%
EPS beat(4)4
Avg EPS beat(4)29.24%
Min EPS beat(4)19.19%
Max EPS beat(4)52.08%
EPS beat(8)6
Avg EPS beat(8)18.05%
EPS beat(12)7
Avg EPS beat(12)9.29%
EPS beat(16)11
Avg EPS beat(16)13.5%
Revenue beat(2)2
Avg Revenue beat(2)3.64%
Min Revenue beat(2)0.01%
Max Revenue beat(2)7.27%
Revenue beat(4)4
Avg Revenue beat(4)4.41%
Min Revenue beat(4)0.01%
Max Revenue beat(4)7.27%
Revenue beat(8)7
Avg Revenue beat(8)3.13%
Revenue beat(12)8
Avg Revenue beat(12)1.75%
Revenue beat(16)12
Avg Revenue beat(16)3.71%
PT rev (1m)0%
PT rev (3m)7.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.3%
EPS NY rev (1m)14.51%
EPS NY rev (3m)14.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 12.18 | ||
| P/S | 1.22 | ||
| P/FCF | 17.24 | ||
| P/OCF | 11.91 | ||
| P/B | 2.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.98 |
EPS(TTM)2.64
EY6.69%
EPS(NY)3.24
Fwd EY8.21%
FCF(TTM)2.29
FCFY5.8%
OCF(TTM)3.32
OCFY8.4%
SpS32.38
BVpS13.3
TBVpS-15.74
PEG (NY)0.66
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 18.89% | ||
| ROCE | 8.63% | ||
| ROIC | 5.94% | ||
| ROICexc | 5.95% | ||
| ROICexgc | 9.49% | ||
| OM | 20.76% | ||
| PM (TTM) | 7.76% | ||
| GM | 35.58% | ||
| FCFM | 7.07% |
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 | 2.6 | ||
| Debt/FCF | 15.23 | ||
| Debt/EBITDA | 4.19 | ||
| Cap/Depr | 66.39% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | 3.44 | ||
| Cash Conversion | 40.11% | ||
| Profit Quality | 91.13% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.27 |
F-Score7
WACC8.17%
ROIC/WACC0.73
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)20.55%
EPS 3Y-4.7%
EPS 5Y16.13%
EPS Q2Q%-19.48%
EPS Next Y22.81%
EPS Next 2Y14.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)32.72%
Revenue growth 3Y2.45%
Revenue growth 5Y8.08%
Sales Q2Q%-1.15%
Revenue Next Year1.27%
Revenue Next 2Y1.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y28.27%
EBIT growth 3Y-3.65%
EBIT growth 5Y10.04%
EBIT Next Year63.02%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-37.62%
FCF growth 3Y-15.44%
FCF growth 5Y5.22%
OCF growth 1Y-31.21%
OCF growth 3Y-14.86%
OCF growth 5Y3.77%