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Relative to Consumer Discretionary Sector Median (N=442)
Metric
CSV
Benchmark
P/E Ratio
14.9x
-39%
EV/EBITDA
7.7x
+56%
Price / Book
2.9x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-46.5%
$25.80Spot: $48.20
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Discretionary sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
19.3%
Sector: 6.2%
Dividend Analysis audit
GROWTH
1.01%
Trailing Yield
$1.01
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
15%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, CARRIAGE SERVICES INC (CSV) receives a "Hold" rating with a composite score of 52.7/100, ranked #350 out of 4446 stocks. Key factor scores: Quality 50/100, Value 75/100, Momentum 50/100. This is quantitative analysis only — not investment advice.
CARRIAGE SERVICES INC (CSV) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does CARRIAGE SERVICES INC Do?
Carriage Services, Inc. provides funeral and cemetery services, and merchandise in the United States. It operates through two segments, Funeral Home Operations and Cemetery Operations. The Funeral Home Operations segment engages in the provision of consultation, funeral home facilities for visitation and memorial services, and transportation services; removal and preparation of remains; and sale of burial and cremation services, and related merchandise, such as caskets and urns. The Cemetery Operations segment provides interment rights for grave sites, lawn crypts, mausoleum spaces, and niche; related cemetery merchandise, including outer burial containers, memorial markers, monuments, and floral placements; and interments, inurnments, and installation of cemetery merchandise services. As of December 31, 2021, it operated 170 funeral homes in 26 states and 31 cemeteries in 11 states. Carriage Services, Inc. was founded in 1991 and is based in Houston, Texas. CARRIAGE SERVICES INC (CSV) is classified as a small-cap stock in the Consumer Discretionary sector, specifically within the Personal Services industry. The company is led by CEO Melvin C. Payne and employs approximately 2,550 people, headquartered in HOUSTON, Texas. With a market capitalization of $721M, CSV is one of the notable companies in the Consumer Discretionary sector.
CARRIAGE SERVICES INC (CSV) Stock Rating — Hold (April 2026)
As of April 2026, CARRIAGE SERVICES INC receives a Hold rating with a composite score of 52.7/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CSV ranks #350 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, CARRIAGE SERVICES INC ranks #17 of 442 stocks, placing it in the top 10% of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CSV Stock Price and 52-Week Range
CARRIAGE SERVICES INC (CSV) currently trades at $48.20. The stock lost $0.39 (0.8%) in the most recent trading session. The 52-week high for CSV is $49.41, which means the stock is currently trading -2.4% from its annual peak. The 52-week low is $35.51, putting the stock 35.7% above its annual trough. Recent trading volume was 54K shares, suggesting relatively thin trading activity.
Is CSV Overvalued or Undervalued? — Valuation Analysis
CARRIAGE SERVICES INC (CSV) carries a value factor score of 75/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 14.94x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 39%. The price-to-book ratio stands at 2.88x, versus the sector average of 1.99x. The price-to-sales ratio is 1.78x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, CSV trades at 7.66x EV/EBITDA, versus 4.91x for the sector.
Based on these multiples, CARRIAGE SERVICES INC appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
CARRIAGE SERVICES INC Profitability — ROE, Margins, and Quality Score
CARRIAGE SERVICES INC (CSV) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 19.3%, compared to the Consumer Discretionary sector average of 6.2%, which is within a healthy range. Return on assets (ROA) comes in at 3.7% versus the sector average of 2.5%.
On a margin basis, CARRIAGE SERVICES INC reports gross margins of 35.3%, compared to 36.9% for the sector. The operating margin is 23.2% (sector: 3.8%). Net profit margin stands at 11.8%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 0.4% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CSV Debt, Balance Sheet, and Financial Health
CARRIAGE SERVICES INC has a debt-to-equity ratio of 428.0%, compared to the Consumer Discretionary sector average of 89.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.98x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $556M. Cash and equivalents stand at $1M.
CSV has a beta of 0.47, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for CARRIAGE SERVICES INC is 89/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
CARRIAGE SERVICES INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, CARRIAGE SERVICES INC reported revenue of $413M and earnings per share (EPS) of $3.29. Net income for the quarter was $49M. Gross margin was 35.3%. Operating income came in at $96M.
In FY 2025, CARRIAGE SERVICES INC reported revenue of $417M and earnings per share (EPS) of $3.29. Net income for the quarter was $52M. Gross margin was 35.1%. Revenue grew 3.3% year-over-year compared to FY 2024. Operating income came in at $98M.
In Q3 2025, CARRIAGE SERVICES INC reported revenue of $103M and earnings per share (EPS) of $0.42. Net income for the quarter was $7M. Gross margin was 35.3%. Revenue grew 2.0% year-over-year compared to Q3 2024. Operating income came in at $18M.
In Q2 2025, CARRIAGE SERVICES INC reported revenue of $102M and earnings per share (EPS) of $0.75. Net income for the quarter was $12M. Gross margin was 35.2%. Revenue grew -0.2% year-over-year compared to Q2 2024. Operating income came in at $24M.
Over the past 8 quarters, CARRIAGE SERVICES INC has demonstrated a growth trajectory, with revenue expanding from $102M to $413M. Investors analyzing CSV stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CSV Dividend Yield and Income Analysis
CARRIAGE SERVICES INC (CSV) currently pays a dividend yield of 1.0%. At this yield, a $10,000 investment in CSV stock would generate approximately $$101.00 in annual dividend income. The net margin of 11.8% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
CSV Momentum and Technical Analysis Profile
CARRIAGE SERVICES INC (CSV) has a momentum factor score of 50/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 18/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CSV vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison
Comparing CSV against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CSV vs S&P 500 (SPY) comparison to assess how CARRIAGE SERVICES INC stacks up against the broader market across all factor dimensions.
CSV Next Earnings Date
No upcoming earnings date has been announced for CARRIAGE SERVICES INC (CSV) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CSV? — Investment Thesis Summary
CARRIAGE SERVICES INC presents a balanced picture with arguments on both sides. The value score of 75/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 89/100) reduces downside risk.
In summary, CARRIAGE SERVICES INC (CSV) earns a Hold rating with a composite score of 52.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CSV stock.
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Institutional Research Dossier
CARRIAGE SERVICES INC (CSV) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Carriage Services (CSV), driven by a mixed outlook. While the company exhibits attractive valuation metrics relative to its sector, particularly in P/E and EV/EBITDA, concerns surrounding its high debt levels and negative free cash flow temper our enthusiasm. The company's strong profitability margins and return on equity are positives, but these are offset by stagnant revenue growth and a challenging capital allocation profile.
The core issue is whether Carriage Services can effectively manage its debt burden while navigating the demographic trends in the death care industry. The company's stability score is high, suggesting low volatility, but the lack of free cash flow raises questions about its long-term sustainability and ability to invest in future growth. Investors should closely monitor the company's debt repayment strategy and its ability to generate positive free cash flow in the coming quarters.
Business Strategy & Overview
Carriage Services operates within the death care industry, providing funeral and cemetery services. The company's revenue is derived from two segments: Funeral Home Operations and Cemetery Operations. Funeral Home Operations generate revenue through consultation services, funeral home facilities, transportation services, and the sale of burial and cremation merchandise. Cemetery Operations generate revenue from interment rights, cemetery merchandise (outer burial containers, markers, monuments), and interment services.
The company's strategy appears to be focused on acquiring and operating funeral homes and cemeteries in fragmented markets. This allows them to consolidate operations and potentially improve efficiency and profitability. However, the success of this strategy hinges on their ability to effectively integrate acquired businesses and manage costs. The death care industry is relatively stable, driven by predictable mortality rates, but is also subject to changing consumer preferences, such as the increasing preference for cremation over traditional burial.
Carriage Services must adapt to these evolving trends to maintain its market share. This includes offering a wider range of cremation options and related merchandise, as well as investing in technology to improve the customer experience. The company also faces competition from both large national players and smaller, independent funeral homes and cemeteries. Differentiation through superior service and unique offerings is crucial for maintaining a competitive edge.
The company's recent financial performance shows a slight increase in revenue, but net income has fluctuated. The company's gross margins have remained relatively stable, but operating margins have shown some variability. This suggests that the company is facing challenges in controlling operating expenses. The company's high debt levels also limit its financial flexibility and ability to invest in growth opportunities.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
0.4%
Sector: 3.3%
-88% VS SCTR
Economic Moat Analysis
Carriage Services' economic moat is likely narrow. While the death care industry benefits from relatively stable demand due to predictable mortality rates, the industry is also characterized by fragmented competition and limited pricing power. The company's brand recognition is likely localized, and switching costs are relatively low, as consumers often choose funeral homes and cemeteries based on proximity, personal recommendations, or pre-arranged plans.
The company's acquisition strategy could potentially create some economies of scale, but these are unlikely to be significant enough to create a wide moat. The company's intangible assets, such as its reputation and relationships with local communities, could provide a slight competitive advantage, but these are difficult to quantify and may not be sustainable in the long run.
The death care industry does not exhibit strong network effects. The value of a funeral home or cemetery does not increase significantly as more customers use it. Efficient scale is also not a major factor, as the industry is characterized by a large number of small to medium-sized operators. The company's ability to generate consistent profits and returns on equity suggests that it has some competitive advantages, but these are not strong enough to warrant a wide moat rating.
The increasing preference for cremation could also erode the company's moat, as cremation services are generally less expensive and require less land than traditional burial services. This could put pressure on the company's revenue and profitability. To maintain its competitive position, Carriage Services must adapt to these changing consumer preferences and offer a wider range of cremation options and related merchandise.
Financial Health & Profitability
Carriage Services' financial health presents a mixed picture. The company's revenue growth has been relatively stagnant, with a TTM revenue growth of only 0.4% compared to the sector average of 3.2%. This indicates that the company is struggling to grow its top line. However, the company's profitability margins are strong, with a TTM operating margin of 23.2% and a net margin of 11.8%, significantly higher than the sector averages of 3.8% and 2.1%, respectively. This suggests that the company is efficient in managing its costs and generating profits.
The company's return on equity (ROE) is also impressive at 19.3%, compared to the sector average of 5.8%. This indicates that the company is effectively utilizing its equity to generate profits. However, the company's balance sheet is highly leveraged, with a debt-to-equity ratio of 428.00, significantly higher than the sector average of 91.00. This high level of debt poses a significant risk to the company's financial stability.
The company's free cash flow is negative at $-28.81M, which is a major concern. This indicates that the company is not generating enough cash to cover its operating expenses and capital expenditures. The company's current ratio is also below 1 at 0.98, indicating that it may have difficulty meeting its short-term obligations. Reviewing the quarterly history, we see that revenue has been relatively flat, with some fluctuations in net income and operating margin. The lack of consistent free cash flow generation is a significant red flag.
The company's high debt levels and negative free cash flow raise concerns about its long-term sustainability. The company needs to improve its revenue growth and generate positive free cash flow to reduce its debt burden and improve its financial health. The company's strong profitability margins and return on equity are positives, but these are offset by its high leverage and negative free cash flow.
Valuation Assessment
Carriage Services' valuation appears attractive based on certain metrics, but a deeper dive reveals potential concerns. The company's P/E ratio of 12.7x is significantly lower than the sector average of 28.0x, suggesting that the stock is undervalued relative to its earnings. Similarly, the company's EV/EBITDA ratio of 1.7x is also significantly lower than the sector average of 5.3x, further supporting the undervaluation thesis.
However, the negative free cash flow complicates the valuation picture. Traditional valuation methods that rely on free cash flow, such as discounted cash flow analysis, are difficult to apply in this case. The company's high debt levels also need to be considered when assessing its valuation. A significant portion of the company's enterprise value is attributable to its debt, which reduces the attractiveness of its equity valuation.
While the company's P/E and EV/EBITDA ratios suggest that the stock is cheap, the negative free cash flow and high debt levels indicate that the company may be facing financial challenges. The market may be discounting the stock due to these concerns. A more conservative valuation approach is warranted, considering the company's financial risks.
The company's valuation is also dependent on its ability to improve its revenue growth and generate positive free cash flow. If the company can successfully execute its turnaround strategy and improve its financial performance, the stock could potentially re-rate higher. However, if the company continues to struggle with revenue growth and free cash flow generation, the stock could remain undervalued or even decline further.
Risk & Uncertainty
Carriage Services faces several specific risks that could impact its business and financial performance. One of the primary risks is its high debt levels. The company's debt-to-equity ratio is significantly higher than the sector average, which increases its financial vulnerability. Rising interest rates could further exacerbate this risk by increasing the company's interest expense and reducing its profitability.
Another risk is the changing consumer preferences in the death care industry. The increasing preference for cremation over traditional burial could put pressure on the company's revenue and profitability. The company needs to adapt to these changing trends by offering a wider range of cremation options and related merchandise. Failure to do so could result in a loss of market share.
Competition is also a significant risk. The death care industry is relatively fragmented, with a large number of small to medium-sized operators. The company faces competition from both large national players and smaller, independent funeral homes and cemeteries. Intense competition could put pressure on the company's pricing and profitability.
Regulatory risks are also present. The death care industry is subject to various state and federal regulations, which could impact the company's operations and financial performance. Changes in these regulations could increase the company's compliance costs or restrict its ability to operate in certain markets.
Bulls Say / Bears Say
The Bull Case
BULL VIEWCarriage Services is undervalued based on its P/E and EV/EBITDA ratios, offering significant upside potential if the company can execute its turnaround strategy.
BULL VIEWThe company's strong profitability margins and return on equity demonstrate its ability to generate profits and returns for shareholders, making it an attractive investment.
BULL VIEWThe death care industry is relatively stable and recession-resistant, providing a predictable stream of revenue for Carriage Services.
The Bear Case
BEAR VIEWCarriage Services' high debt levels and negative free cash flow pose a significant risk to its financial stability, potentially leading to financial distress.
BEAR VIEWThe increasing preference for cremation could erode the company's revenue and profitability, as cremation services are generally less expensive than traditional burial services.
BEAR VIEWStagnant revenue growth and intense competition in the death care industry limit the company's ability to generate sustainable growth and improve its financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score CSV and 4,400+ other equities.
CARRIAGE SERVICES INC exhibits a 155% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.7%
Sector: 2.5%
Gross Margin
Pricing power and cost efficiency
35.3%
Sector: 36.9%
Operating Margin
Core business profitability
23.2%
Sector: 3.8%
Net Margin
Bottom-line profitability
11.8%
Sector: 2.1%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $101 annually in dividends at the current trailing rate.
