Bedrijfsoverzicht
Carriage Services, Inc. is a prominent provider of funeral and cemetery services, as well as related merchandise throughout the United States. The company's operations are structured into two distinct segments: Funeral Home Operations and Cemetery Operations, where the former delivers consultation services and utilizes funeral home facilities specifically for visitation and memorial purposes. This entity operates within the Consumer Cyclical sector, specifically classified under the Personal Services industry, which denotes a business model sensitive to consumer spending patterns and discretionary income levels. The company demonstrates a substantial operational scale, backed by a market capitalization of $763.71M and an annual revenue stream of $417.44M, supported by a workforce of 1248 employees. These financial dimensions indicate that Carriage Services, Inc. occupies a significant position within the niche market for end-of-life services, managing a portfolio of assets and facilities that generate consistent cash flows while navigating the cyclical nature of consumer demand.
Financiële gezondheid
The company reported a trailing twelve-month revenue of $417.44M, which resulted in a net income of $50.82M and an EBITDA of $121.74M, highlighting a substantial gap between top-line revenue and bottom-line profit that reflects the rigorous cost structure inherent in labor-intensive service industries. This disparity reveals that operating expenses, including wages for funeral directors and cemetery maintenance staff, consume a significant portion of gross revenue before reaching the net income figure. Carriage Services, Inc. generated free cash flow of $44.98M, which provides the entity with essential financial flexibility to manage capital expenditures, service debt obligations, or potentially return capital to shareholders without compromising core operational capabilities. Profitability analysis shows a gross margin of 38.3%, an operating margin of 22.9%, and a profit margin of 12.3%, indicating that while the company retains a healthy portion of revenue after direct costs, the final profit is further compressed by operating overheads and taxes. The balance sheet presents a leveraged profile with total debt standing at $552.51M against cash reserves of only $1.69M, a dynamic further emphasized by a debt-to-equity ratio of 216.86. Despite the high leverage, the current ratio of 0.98 suggests that the company's short-term liquid assets are slightly insufficient to cover its short-term liabilities, implying a reliance on steady cash generation to meet obligations. Management effectiveness is evidenced by a return on equity of 22.2% and a return on assets of 4.7%, metrics that demonstrate the company's ability to generate substantial returns on shareholder capital relative to its total asset base.
Waarderingsbeoordeling
Valuation metrics for Carriage Services, Inc. indicate a trailing P/E ratio of 14.82 and a forward P/E of 12.91, suggesting that the market expects earnings growth in the future that would justify a lower multiple on projected profits compared to historical performance. The price-to-book ratio stands at 2.98, which implies that the stock trades at a significant premium relative to its tangible book value, reflecting investor confidence in the brand's intangible assets and stable cash flows. Alternative valuation measures such as the price-to-sales ratio of 1.83 and an EV/EBITDA of 10.75 provide additional context, suggesting the company is priced conservatively relative to its earnings power while maintaining a premium over sales figures typical for service sectors. Price action over the last year has seen the stock fluctuate between a 52-week high of $49.41 and a 52-week low of $37.86, with the current trading position situated within this historical range, reflecting market consolidation around established value levels. The stock exhibits a beta of 0.91, indicating that its price volatility moves in tandem with the broader market, offering exposure to general market fluctuations without the amplified swings often seen in more speculative sectors.
Growth & Income
The company has demonstrated solid expansion with a revenue growth of 8.0% year-over-year and an earnings growth of 16.8% year-over-year, indicating that earnings are expanding at a significantly faster pace than revenue, which often points to improving operational leverage or margin expansion. Carriage Services, Inc. maintains a dividend yield of 0.9% with a payout ratio of 13.9%, a low payout ratio that ensures the dividend is highly sustainable given the robust earnings growth and strong free cash flow generation. The conservative payout ratio allows the company to retain a majority of its earnings for reinvestment in business operations, facility maintenance, and strategic acquisitions rather than distributing profits solely to shareholders. Overall, the growth and income profile combines moderate revenue expansion with accelerating earnings and a disciplined, low-risk dividend policy that caters to investors seeking both capital appreciation and reliable income streams.