Carriage Services, Inc (NYSE:CSV) Poised To Stabilize Margins Amid Near-Term Pressure

Operational margins remain resilient even as leverage and cash generation tighten, creating a conditional path to stabilization over the next several weeks.

Recent News

Jul 16, 2026 — Board declared a quarterly cash dividend. Jul 22, 2026 — Company published its second-quarter earnings release schedule and conference call timing. Aug 13–15, 2026 — Oppenheimer initiated coverage with an Outperform and a $48 price target; the company announced the resignation of its Chief Information Officer, effective Aug 13, 2026.

Technical Analysis

ADX stands at 16.07, indicating no dominant trend; this low ADX aligns with the current consolidation and limits conviction for strong directional moves tied to the valuation gap.

Directional indicators show DI+ at 20.20 with a decreasing trend and DI- at 25.15 with a dip-and-reversal trend; both readings signal directional pressure skewed toward sellers, which raises short-term downside risk against the company’s stated valuation.

MACD shows a dip-and-reversal pattern, which indicates developing bullish momentum; however, MACD sits near the signal line (MACD -1.04 vs signal -0.98), so any momentum requires confirmation before translating into a sustained price move.

MRO registers -28.74 with a peak-and-reversal trend; the negative MRO implies price below the internal target and therefore potential upward pressure if momentum indicators confirm a turn.

RSI at 43.5 with a decreasing trend indicates momentum toward the lower half of the range without oversold conviction, supporting a view of controlled selling rather than panic-driven moves.

Price sits below the 50-day ($37.45) and 200-day ($41.92) averages while tracking roughly at the 20-day average ($34.56) and just above the lower Bollinger band ($33.82), suggesting price compression near short-term support with room to mean-revert if momentum flips. Low 42‑day volatility (3%) and a muted 52‑week volatility (2%) imply tighter ranges ahead.

 


Fundamental Analysis

Earnings and guidance posted for the period ending 2026-06-30 reported EPS of $0.78 versus an $0.82 estimate, an EPS shortfall of $0.04 (-4.88%); the company filed the quarterly report on 2026-08-05.

Revenue for the period totaled $102,949,000 with YoY revenue change at -35.00% and sequential revenue growth near -2.99%; gross margin stands at 34.04% while operating margin sits at 23.35% and EBIT margin at 23.16%, which compares above the industry peer mean EBIT margin of 20.818%.

EBIT reached $23,840,000 and EBITDA $31,245,000, producing an interest coverage ratio of 3.57 and debt-to-EBITDA roughly 17.58x; net debt totals $528,181,000 against a market capitalization of $639,099,922, which implies meaningful leverage relative to equity value and constrains free cash flexibility.

Cash flow metrics highlight operating cash flow of $7,552,000 and free cash flow of $2,225,000, yielding a free cash flow yield near 0.35%, below the industry peer mean free cash flow yield of 1.606%; cash on hand reads $2,550,000 and the cash ratio equals 5.49%.

Return on equity measures 4.39% and return on assets 0.90%, both down QoQ and YoY; asset turnover registers 7.59%, below the industry peer mean asset turnover of 14.795%, which reflects the capital intensity of cemetery and funeral operations and contributes to the low absolute returns.

Valuation multiples show a trailing PE of 51.62x and forward PE near 46.48x, with enterprise multiple roughly 37.95x; price-to-book at 2.29 sits below the industry peer mean P/B of 8.945, while WMDST categorizes the current valuation as under-valued. Use of industry peer means here follows available peer ranges for context where provided.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2026-06-30
REPORT DATE: 2026-08-05
NEXT REPORT DATE: 2026-11-04
CASH FLOW  Begin Period Cash Flow 2.9 M
 Operating Cash Flow 7.6 M
 Capital Expenditures -5.33 M
 Change In Working Capital -16.69 M
 Dividends Paid -1.78 M
 Cash Flow Delta -358.00 K
 End Period Cash Flow 2.5 M
 
INCOME STATEMENT REVENUE
 Total Revenue 102.9 M
 Forward Revenue 30.2 M
COSTS
 Cost Of Revenue 67.9 M
 Depreciation 7.1 M
 Depreciation and Amortization 7.4 M
 Research and Development
 Total Operating Expenses 78.9 M
PROFITABILITY
 Gross Profit 35.0 M
 EBITDA 31.2 M
 EBIT 23.8 M
 Operating Income 24.0 M
 Interest Income
 Interest Expense 6.7 M
 Net Interest Income -6.68 M
 Income Before Tax 17.2 M
 Tax Provision 4.9 M
 Tax Rate 28.472 %
 Net Income 12.3 M
 Net Income From Continuing Operations 12.3 M
EARNINGS
 EPS Estimate 0.82
 EPS Actual 0.78
 EPS Difference -0.04
 EPS Surprise -4.878 %
 Forward EPS 0.91
 
BALANCE SHEET ASSETS
 Total Assets 1.4 B
 Intangible Assets 474.0 M
 Net Tangible Assets -194.62 M
 Total Current Assets 67.6 M
 Cash and Short-Term Investments 2.5 M
 Cash 2.5 M
 Net Receivables 39.4 M
 Inventory 7.7 M
 Long-Term Investments 325.4 M
LIABILITIES
 Accounts Payable 16.3 M
 Short-Term Debt 4.7 M
 Total Current Liabilities 46.5 M
 Net Debt 528.2 M
 Total Debt 549.3 M
 Total Liabilities 1.1 B
EQUITY
 Total Equity 279.4 M
 Retained Earnings 320.5 M
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share 17.60
 Shares Outstanding 15.872 M
 Revenue Per-Share 6.49
VALUATION
 Market Capitalization 639.1 M
 Enterprise Value 1.2 B
 Enterprise Multiple 37.952
Enterprise Multiple QoQ -6.12 %
Enterprise Multiple YoY -7.14 %
Enterprise Multiple IPRWA high: 55.044
median: 49.191
mean: 44.6
CSV: 37.952
low: 26.392
 EV/R 11.519
CAPITAL STRUCTURE
 Asset To Equity 4.889
 Asset To Liability 1.257
 Debt To Capital 0.663
 Debt To Assets 0.402
Debt To Assets QoQ -0.706 %
Debt To Assets YoY -4.968 %
Debt To Assets IPRWA high: 0.542
CSV: 0.402
mean: 0.395
low: 0.276
median: 0.276
 Debt To Equity 1.966
Debt To Equity QoQ -3.885 %
Debt To Equity YoY -14.253 %
Debt To Equity IPRWA high: 4.141
median: 3.45
mean: 3.371
low: 2.178
CSV: 1.966
PRICE-BASED VALUATION
 Price To Book (P/B) 2.288
Price To Book QoQ -16.648 %
Price To Book YoY -23.457 %
Price To Book IPRWA high: 17.21
mean: 8.945
median: 6.905
low: 4.085
CSV: 2.288
 Price To Earnings (P/E) 51.622
Price To Earnings QoQ -3.82 %
Price To Earnings YoY -13.838 %
Price To Earnings IPRWA high: 86.323
median: 86.323
mean: 67.965
CSV: 51.622
low: 36.552
 PE/G Ratio -5.55
 Price To Sales (P/S) 6.208
Price To Sales QoQ -10.08 %
Price To Sales YoY -9.876 %
Price To Sales IPRWA high: 9.62
median: 9.62
mean: 8.171
CSV: 6.208
low: 4.947
FORWARD MULTIPLES
Forward P/E 46.477
Forward PE/G -4.996
Forward P/S 21.215
EFFICIENCY OPERATIONAL
 Operating Leverage 1.91
ASSET & SALES
 Asset Turnover Ratio 0.076
Asset Turnover Ratio QoQ -3.707 %
Asset Turnover Ratio YoY -5.282 %
Asset Turnover Ratio IPRWA high: 0.297
mean: 0.148
CSV: 0.076
low: 0.058
median: 0.058
 Receivables Turnover 2.645
Receivables Turnover Ratio QoQ -3.975 %
Receivables Turnover Ratio YoY -15.452 %
Receivables Turnover Ratio IPRWA high: 61.524
mean: 22.187
median: 10.797
low: 3.671
CSV: 2.645
 Inventory Turnover 8.781
Inventory Turnover Ratio QoQ 0.864 %
Inventory Turnover Ratio YoY 2.365 %
Inventory Turnover Ratio IPRWA high: 62.281
median: 50.101
mean: 30.472
CSV: 8.781
low: 0.567
 Days Sales Outstanding (DSO) 34.495
CASH CYCLE
 Cash Conversion Cycle Days (CCC) 25.406
Cash Conversion Cycle Days QoQ 13.188 %
Cash Conversion Cycle Days YoY 33.433 %
Cash Conversion Cycle Days IPRWA high: 105.331
CSV: 25.406
mean: 8.066
median: -1.519
low: -97.317
CAPITAL DEPLOYMENT
 Cash Conversion Ratio 4.865
 CapEx To Revenue -0.052
 CapEx To Depreciation -0.752
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital 805.4 M
 Net Invested Capital 810.1 M
 Invested Capital 810.1 M
 Net Tangible Assets -194.62 M
 Net Working Capital 21.2 M
LIQUIDITY
 Cash Ratio 0.055
 Current Ratio 1.455
Current Ratio QoQ 26.449 %
Current Ratio YoY 37.416 %
Current Ratio IPRWA high: 1.591
CSV: 1.455
mean: 0.788
median: 0.531
low: 0.479
 Quick Ratio 1.289
Quick Ratio QoQ 29.551 %
Quick Ratio YoY 42.809 %
Quick Ratio IPRWA high: 4.677
CSV: 1.289
median: 1.067
mean: 0.899
low: 0.146
COVERAGE & LEVERAGE
 Debt To EBITDA 17.58
 Cost Of Debt 0.873 %
 Interest Coverage Ratio 3.567
Interest Coverage Ratio QoQ -2.871 %
Interest Coverage Ratio YoY 5.028 %
Interest Coverage Ratio IPRWA high: 9.789
mean: 5.567
low: 3.578
median: 3.578
CSV: 3.567
 Operating Cash Flow Ratio 0.481
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO) 19.545
DIVIDENDS
 Dividend Coverage Ratio 6.875
 Dividend Payout Ratio 0.145
 Dividend Rate 0.11
 Dividend Yield 0.003
PERFORMANCE GROWTH
 Asset Growth Rate 1.307 %
 Revenue Growth -2.988 %
Revenue Growth QoQ -593.884 %
Revenue Growth YoY -35.001 %
Revenue Growth IPRWA high: 42.92 %
mean: 13.051 %
low: 0.623 %
median: 0.623 %
CSV: -2.988 %
 Earnings Growth -9.302 %
Earnings Growth QoQ -163.421 %
Earnings Growth YoY -59.41 %
Earnings Growth IPRWA high: 164.384 %
mean: 48.723 %
low: -7.216 %
median: -7.216 %
CSV: -9.302 %
MARGINS
 Gross Margin 34.04 %
Gross Margin QoQ -6.514 %
Gross Margin YoY -3.24 %
Gross Margin IPRWA high: 58.514 %
CSV: 34.04 %
mean: 33.199 %
median: 24.79 %
low: 24.252 %
 EBIT Margin 23.157 %
EBIT Margin QoQ -2.804 %
EBIT Margin YoY -0.992 %
EBIT Margin IPRWA high: 28.793 %
CSV: 23.157 %
median: 20.986 %
mean: 20.818 %
low: 10.244 %
 Return On Sales (ROS) 23.354 %
Return On Sales QoQ -3.019 %
Return On Sales YoY -0.592 %
Return On Sales IPRWA high: 28.173 %
CSV: 23.354 %
median: 21.003 %
mean: 20.671 %
low: 10.244 %
CASH FLOW
 Free Cash Flow (FCF) 2.2 M
 Free Cash Flow Yield 0.348 %
Free Cash Flow Yield QoQ -76.831 %
Free Cash Flow Yield YoY -53.289 %
Free Cash Flow Yield IPRWA high: 2.455 %
mean: 1.606 %
low: 1.081 %
median: 1.081 %
CSV: 0.348 %
 Free Cash Growth -79.776 %
Free Cash Growth QoQ -140.177 %
Free Cash Growth YoY 57.318 %
Free Cash Growth IPRWA high: 6.195 %
mean: -28.006 %
low: -49.163 %
median: -49.163 %
CSV: -79.776 %
 Free Cash To Net Income 0.181
 Cash Flow Margin 21.715 %
 Cash Flow To Earnings 1.822
VALUE & RETURNS
 Economic Value Added 0.03
 Return On Assets (ROA) 0.904 %
Return On Assets QoQ -9.78 %
Return On Assets YoY -1.739 %
Return On Assets IPRWA high: 5.747 %
mean: 2.027 %
CSV: 0.904 %
low: 0.661 %
median: 0.661 %
 Return On Capital Employed (ROCE) 1.807 %
 Return On Equity (ROE) 0.044
Return On Equity QoQ -13.079 %
Return On Equity YoY -11.893 %
Return On Equity IPRWA high: 0.44
mean: 0.164
median: 0.081
CSV: 0.044
low: 0.043
 DuPont ROE 4.493 %
 Return On Invested Capital (ROIC) 2.105 %
Return On Invested Capital QoQ -9.889 %
Return On Invested Capital YoY -4.665 %
Return On Invested Capital IPRWA high: 9.719 %
mean: 4.284 %
median: 2.534 %
low: 2.21 %
CSV: 2.105 %

Six-Week Outlook

Technical setup suggests range-bound action unless one of two conditions triggers a breakout: (1) momentum confirmation via MACD crossing above its signal line or (2) a sustained DI+ recovery against ADX rising above 20. MRO’s negative reading supports upside potential if momentum flips, but elevated leverage and low free cash flow yield create asymmetric risk if operating performance weakens further.

Near-term catalysts include new analyst coverage and the recent CIO departure; those items may accelerate volume and reprice expectations, but internal cash generation and debt service remain the dominating fundamental constraints for any sustained re-rating.

Swing traders should monitor momentum confirmation (MACD relative to signal, RSI stabilization) and the relationship of price to the 20‑day and 50‑day averages; absent momentum confirmation, expect limited directional conviction while fundamentals—especially leverage and cash flow—set the medium-term valuation ceiling.

About Carriage Services, Inc.

Carriage Services, Inc. (NYSE:CSV) delivers comprehensive funeral and cemetery services throughout the United States. Headquartered in Houston, Texas, Carriage Services divides its operations into two primary segments: Funeral Home Operations and Cemetery Operations. The Funeral Home Operations segment provides a full suite of services, including professional consultation, facilities for visitation and memorial services, transportation, and preparation of remains. It also offers a variety of funeral merchandise, such as caskets, urns, and cremation services, ensuring families can arrange all necessary services in one location. The Cemetery Operations segment offers dignified final resting places by providing interment rights for grave sites, lawn crypts, mausoleum spaces, and niches. This segment also supplies related merchandise like memorial markers and monuments and manages their installation and maintenance. Established in 1991, Carriage Services commits to delivering compassionate and personalized service, blending traditional values with modern practices. The company’s dedicated team supports families with empathy and professionalism, ensuring that each service serves as a meaningful tribute to those who have passed.



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