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 belongs to the best of the industry regarding profitability, there are concerns on its financial health. CSV is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
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 65.28% of the companies in the same industry.
With an excellent Return On Equity value of 23.81%, CSV belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
CSV has a Return On Invested Capital of 6.21%. This is in the better half of the industry: CSV outperforms 72.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CSV is significantly below the industry average of 10.64%.
The last Return On Invested Capital (6.21%) for CSV is above the 3 year average (4.77%), which is a sign of increasing profitability.
| 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 better Profit Margin (10.39%) than 72.22% of its industry peers.
CSV's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.55%, CSV belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of CSV has grown nicely.
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.
The number of shares outstanding for CSV has been increased compared to 1 year ago.
The number of shares outstanding for CSV has been reduced compared to 5 years ago.
Compared to 1 year ago, CSV has an improved debt to assets ratio.
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 56.94% 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.
Looking at the Debt to FCF ratio, with a value of 17.47, CSV is in line with its industry, outperforming 59.72% 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.
Looking at the Debt to Equity ratio, with a value of 2.37, CSV is doing worse than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 17.47 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.8
WACC7.8%
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.
CSV has a Quick 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.
With a Quick ratio value of 0.80, CSV is not doing good in the industry: 62.50% 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
The Earnings Per Share has grown by an nice 19.75% over the past year.
The Earnings Per Share has been growing by 16.13% on average over the past years. This is quite good.
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 13.21% on average over the next years. This is quite good.
Based on estimates for the next years, CSV will show a small growth in Revenue. The Revenue will grow by 2.06% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 16.07 indicates a correct valuation of CSV.
Based on the Price/Earnings ratio, CSV is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.19. CSV is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.54, CSV is valued correctly.
80.56% of the companies in the same industry are more expensive than CSV, based on the Price/Forward Earnings ratio.
CSV is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
72.22% of the companies in the same industry are more expensive than CSV, based on the Enterprise Value to EBITDA ratio.
CSV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CSV is cheaper than 68.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.66 | ||
| EV/EBITDA | 9.39 |
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.
The excellent profitability rating of CSV may justify a higher PE ratio.
A more expensive valuation may be justified as CSV's earnings are expected to grow with 13.21% in the coming years.
PEG (NY)0.69
PEG (5Y)1
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 3.87. CSV pays more dividend than 86.11% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, CSV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
On average, the dividend of CSV grows each year by 8.45%, which is quite nice.
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
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 2Y13.21%
EPS Next 3YN/A
45.81
-1.12 (-2.39%)
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 Cap718.76M
Analysts85
Price Target53.04 (15.78%)
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)-1.13%
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 | 16.07 | ||
| Fwd PE | 13.54 | ||
| P/S | 1.41 | ||
| P/FCF | 23.66 | ||
| P/OCF | 15.6 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.39 |
EPS(TTM)2.85
EY6.22%
EPS(NY)3.38
Fwd EY7.39%
FCF(TTM)1.94
FCFY4.23%
OCF(TTM)2.94
OCFY6.41%
SpS32.59
BVpS14.22
TBVpS-14.56
PEG (NY)0.69
PEG (5Y)1
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
WACC7.8%
ROIC/WACC0.8
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%