Last Updated: 18 Oct 2024
Executive Summary
Carriage Services Inc. (CSV) is a leading provider of funeral and cemetery services in the United States. The company has a strong financial position with a market capitalization of $491.99 million, EBITDA of $102.57 million, and earnings per share (EPS) of $1.89. CSV's stock is currently trading at $32.35, which is below its 52-week high of $34.87 but above its 52-week low of $17.84.
Company Overview
Carriage Services was founded in 1992 and is headquartered in Houston, Texas. The company operates over 170 funeral homes and 30 cemeteries in 23 states. CSV's services include funeral planning, cremation, cemetery burial, and memorialization.
Fundamental Analysis
CSV's financial performance has been solid in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.6% over the past five years. EPS has grown at a CAGR of 7.4% over the same period. CSV's profit margin is 7.47%, which is higher than the industry average of 6.5%. The company's return on assets (ROA) is 3.97% and its return on equity (ROE) is 17.2%.
CSV's balance sheet is also strong. The company has $123.3 million in cash and equivalents and $192.2 million in total debt. CSV's debt-to-equity ratio is 0.63, which is below the industry average of 0.75.
Technical Analysis
CSV's stock price has been trending higher in recent months. The stock broke out of a resistance level at $30.00 in early August and has since reached a high of $34.87. The stock is currently trading above its 50-day moving average of $31.98 and its 200-day moving average of $27.71. The relative strength index (RSI) is 62.5, which indicates that the stock is overbought.
Short Term Outlook
CSV's stock price is likely to continue to trend higher in the short term. The stock is trading above its key moving averages and the RSI is overbought. This indicates that there is strong momentum behind the stock. However, the stock is also overbought, which could lead to a pullback in the near term.
Long Term Outlook
CSV's long-term outlook is positive. The company has a strong financial position and a growing market share. The funeral and cemetery industry is expected to grow in the coming years as the population ages. This should provide CSV with opportunities for continued growth.
Analyst Recommendations
Analysts have a positive outlook on CSV's stock. Two analysts have a "Strong Buy" rating on the stock, two have a "Buy" rating, and none have a "Hold," "Sell," or "Strong Sell" rating. The average analyst target price is $39.25, which represents a potential upside of 21.3% from the current price.
