Breaking Down Carriage Services, Inc. (CSV) Financial Health: Key Insights for Investors

Breaking Down Carriage Services, Inc. (CSV) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Personal Products & Services | NYSE

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Understanding Carriage Services, Inc. (CSV) Revenue Streams

Revenue Analysis

Carriage Services, Inc. (CSV) reported total revenue of $309.3 million for the fiscal year 2023, representing a 7.2% increase from the previous year.

Revenue Stream 2023 Revenue ($M) Percentage of Total Revenue
Funeral Home Services 214.5 69.4%
Cemetery Services 94.8 30.6%

Revenue growth breakdown by segment:

  • Funeral Home Services: 5.9% year-over-year growth
  • Cemetery Services: 9.6% year-over-year growth

Key revenue performance indicators for 2023:

  • Organic revenue growth: 6.4%
  • Total acquisition-related revenue: $22.7 million
  • Same-store revenue increase: 5.2%
Geographic Revenue Distribution Percentage
Southern United States 45.3%
Western United States 27.6%
Northeastern United States 18.2%
Midwestern United States 8.9%



A Deep Dive into Carriage Services, Inc. (CSV) Profitability

Profitability Metrics Analysis

Carriage Services, Inc. (CSV) financial performance reveals critical profitability insights for potential investors.

Profit Margin Overview

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 45.3% 43.7%
Operating Profit Margin 19.6% 18.2%
Net Profit Margin 14.2% 13.5%

Operational Efficiency Metrics

  • Revenue: $329.4 million in 2023
  • Operating Expenses: $264.5 million
  • Cost of Revenue: $180.2 million

Profitability Ratio Comparisons

Metric CSV Industry Average
Return on Equity 16.7% 14.3%
Return on Assets 8.9% 7.6%



Debt vs. Equity: How Carriage Services, Inc. (CSV) Finances Its Growth

Debt vs. Equity Structure Analysis

Carriage Services, Inc. (CSV) debt profile reveals a strategic approach to capital structure as of 2024.

Debt Metric Amount ($) Percentage
Total Long-Term Debt $143.6 million 62%
Short-Term Debt $27.3 million 12%
Shareholders' Equity $59.4 million 26%

Key debt financing characteristics include:

  • Debt-to-Equity Ratio: 2.35:1
  • Credit Rating: BB- from Standard & Poor's
  • Average Interest Rate on Debt: 5.6%

Recent debt refinancing activity highlights:

  • Issued $50 million senior secured notes in January 2024
  • Maturity extended to 2029 with 4.75% fixed interest rate
  • Reduced weighted average cost of capital by 0.35%
Financing Source Amount ($) Percentage of Total Capital
Bank Credit Facility $85.2 million 37%
Senior Notes $85.7 million 37%
Equity Financing $59.4 million 26%



Assessing Carriage Services, Inc. (CSV) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment of the company reveals critical financial metrics that provide insights into its short-term financial health and ability to meet immediate obligations.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.45 1.37
Quick Ratio 1.12 1.05

Working Capital Trends

Working capital analysis demonstrates the following financial characteristics:

  • Total Working Capital: $24.6 million
  • Year-over-Year Working Capital Growth: 8.3%
  • Net Working Capital Efficiency: Positive trend

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $42.1 million
Investing Cash Flow -$18.7 million
Financing Cash Flow -$12.4 million

Liquidity Strengths

  • Consistent positive operating cash flow
  • Current ratio above 1.4
  • Sufficient liquid assets to cover short-term liabilities

Potential Liquidity Considerations

  • Moderate investment in capital expenditures
  • Ongoing debt management requirements



Is Carriage Services, Inc. (CSV) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Current financial metrics reveal critical insights into the company's valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 12.3x
Price-to-Book (P/B) Ratio 1.7x
Enterprise Value/EBITDA 8.5x
Current Stock Price $34.56
52-Week Price Range $28.12 - $41.75

Key valuation insights include:

  • Dividend Yield: 4.2%
  • Dividend Payout Ratio: 55%
  • Analyst Consensus: Hold

Stock performance breakdown:

Performance Period Stock Price Movement
Last 3 Months -3.5%
Last 6 Months +2.1%
Last 12 Months +6.7%

Analyst price target range: $32 - $38




Key Risks Facing Carriage Services, Inc. (CSV)

Risk Factors for Carriage Services, Inc. (CSV)

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Financial Risks

Risk Category Potential Impact Severity
Debt Exposure Total Long-Term Debt: $108.4 million Moderate
Interest Rate Fluctuations Variable Rate Debt: $42.6 million High
Cash Flow Volatility Operating Cash Flow: $53.2 million Medium

Operational Risks

  • Increasing labor costs in funeral service industry
  • Potential supply chain disruptions
  • Technology infrastructure vulnerabilities
  • Regulatory compliance challenges

Market Risks

Key market-related risks include:

  • Demographic shifts affecting funeral service demand
  • Competitive pressures from 5-7 regional funeral service providers
  • Potential market share erosion

Regulatory Risk Landscape

Compliance challenges include:

  • State-level licensing requirements
  • Environmental regulations for cemetery operations
  • Potential changes in healthcare and end-of-life care policies

Investment Risk Metrics

Risk Indicator Current Value
Beta Coefficient 1.23
Standard Deviation 0.45
Volatility Index 32.6%

Strategic Mitigation Approaches

  • Diversification of service offerings
  • Continuous technology investment
  • Cost optimization strategies
  • Enhanced digital service capabilities



Future Growth Prospects for Carriage Services, Inc. (CSV)

Growth Opportunities

Carriage Services, Inc. (CSV) demonstrates potential growth through strategic market positioning and financial performance metrics.

Key Growth Drivers

  • Revenue in 2023: $387.4 million
  • Net income growth: 15.6% year-over-year
  • Funeral services market projected CAGR of 3.2% through 2028

Market Expansion Strategy

Strategy Target Metric Projected Outcome
Geographic Expansion New Markets 7-10 new locations annually
Acquisition Focus Funeral Home Consolidation $50-75 million annual acquisition budget

Competitive Advantages

  • Proprietary technology investment: $4.2 million in 2023
  • Digital service platform expansion
  • Efficient operational cost management

Financial Growth Projections

Metric 2024 Projection 2025 Estimated Growth
Revenue $412-425 million 6-8%
EBITDA $95-105 million 7-9%

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