Carriage Services Inc (CSV) Stock Analysis and Metrics

Carriage Services

NYSE: CSV

$40.06 ▲ +1.10 (+2.84%)

At close: Jul 27, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap623.65 Mn

P/E14.18

P/S1.50

Div. Yield0.01

ROIC (Qtr)0.04

Total Debt (Qtr)522.28 Mn

Revenue Growth (1y) (Qtr)-0.89

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About

Carriage Services, Inc. is a leading provider of funeral and cemetery services and merchandise in the United States.

The company generates revenue by offering funeral home services such as consultation removal and preparation of remains sale of caskets and related merchandise use of facilities for visitation and memorial services and transportation; and cemetery services including sale of interment rights markers outer burial containers monuments and interment inurnment and installation services. Revenue also comes from pre need contracts for both funeral and cemetery offerings and from fees earned managing trust assets associated with pre need sales.

The company operates through the following segments: Funeral Home Operations and Cemetery Operations.

• Funeral Home Operations: This segment provides ceremony and tribute services care of remains through burial or cremation and memorialization via monuments markers or inscriptions. It offers consultation removal and preparation of remains sale of caskets and related funeral merchandise use of funeral home facilities for visitation and memorial services and transportation. Most locations have a non denominational chapel on site to reduce transportation inconvenience. The segment also sells cremation products and services and provides pre need funeral contracts that lock in prices and services for future delivery.

• Cemetery Operations: This segment sells interment rights such as grave sites lawn crypts mausoleum spaces and niches and related cemetery merchandise including markers outer burial containers and monuments. It provides interment inurnment and installation services for cemetery merchandise. The segment focuses on pre need cemetery property sales to build family heritage and offers trust funded arrangements to secure future performance.

Carriage Services, Inc. holds a strong position in the fragmented funeral and cemetery industry where it competes with both large public operators and numerous independent firms. The company believes it is a market leader in most of its local markets and together with Service Corporation International accounts for roughly 23% of total United States funeral and cemetery revenue. Competitive advantages stem from its reputation and heritage professional service and well maintained conveniently located facilities as well as its focus on pre need sales which create predictable revenue streams and long term customer relationships.

The company serves families and individuals who need funeral and cemetery services at the time of death as well as those who plan arrangements in advance. Its customer base includes private households across the 24 states where it operates funeral homes and the 9 states where it operates cemeteries.

Investment Thesis

▲ Bull case

Carriage Services (CSV) is positioned to benefit from a structural shift toward preneed sales, which are less sensitive to short-term volume fluctuations and provide recurring revenue streams, as evidenced by an 8% increase in consolidated preneed funeral insurance contracts sold in Q1 FY26 and a 9% rise in preneed cemetery sales production, indicating successful execution of its data-driven growth strategy focused on deeper preneed penetration across both funeral and cemetery segments, which management highlighted as a key priority for sustaining margins and capital efficiency through improved predictability and higher average revenue per contract. The company's disciplined capital allocation framework, enhanced by the newly launched ATM equity program, provides flexible and opportunistic funding for high-return acquisitions in a fragmented industry, with management indicating significant M&A activity in the back half of FY26 and the potential to exceed the $10 million revenue contribution assumption from acquisitions, supported by a robust pipeline and recent integration of Florida assets (Faith Chapel and Osceola) that are already generating synergies and enabling new cemetery inventory development, which could accelerate organic growth beyond current guidance. Operational improvements from the transcript: Management emphasized that overhead expenses decreased to 14% of revenues from 14.3% year-over-year due to effective cost management and lower variable costs, reflecting institutionalized processes and disciplined execution that are translating into margin expansion, as seen in the 100 basis point increase in adjusted EBITDA margin to 31.8% despite a 5.8% decline in funeral home admit volume, demonstrating the scalability of their operating platform and ability to maintain profitability through proactive labor management, corporate overhead controls, and targeted technology investments like the Trinity platform rollout, which is expected to enhance customer experience and operating leverage across all funeral homes by end-2026 and combos/cemeteries by early 2027. The funeral service mix is shifting favorably, with a 40 basis point growth in cremation mix over the last three quarters, which management noted is expected to drive higher average revenue per contract (ARPC), and this trend, combined with a 1.6% increase in comparable ARPC in Q1 FY26 and a 15.3% increase in average revenue per property contract in the cemetery segment, supports pricing sophistication and service mix optimization as sustainable levers for revenue growth and margin expansion, independent of volume recovery, aligning with their long-term strategic objective of building a data-driven high-performance platform for sustained organic growth. Carriage Services (CSV) maintains a strong balance sheet with a leverage ratio of 4x, within its target range of 3.5x-4x, and generated $400,000 in free cash flow in Q1 FY26, up 3.5% year-over-year, providing internal liquidity to fund growth initiatives and acquisitions without over-reliance on external financing, while the ATM program offers additional flexibility to pursue disciplined, high-return investments in a measured way, reinforcing confidence in the company's ability to execute its 2030 vision of becoming a premier best-in-class operator with consistent top-tier margins and improved free cash flow generation.

Carriage Services (CSV) is positioned to benefit from a structural shift toward preneed sales, which are less sensitive to short-term volume fluctuations and provide recurring revenue streams, as evidenced by an 8% increase in consolidated preneed funeral insurance contracts sold in Q1 FY26 and a 9% rise in preneed cemetery sales production, indicating successful execution of its data-driven growth strategy focused on deeper preneed penetration across both funeral and cemetery segments, which management highlighted as a key priority for sustaining margins and capital efficiency through improved predictability and higher average revenue per contract. The company's disciplined capital allocation framework, enhanced by the newly launched ATM equity program, provides flexible and opportunistic funding for high-return acquisitions in a fragmented industry, with management indicating significant M&A activity in the back half of FY26 and the potential to exceed the $10 million revenue contribution assumption from acquisitions, supported by a robust pipeline and recent integration of Florida assets (Faith Chapel and Osceola) that are already generating synergies and enabling new cemetery inventory development, which could accelerate organic growth beyond current guidance. Operational improvements from the transcript: Management emphasized that overhead expenses decreased to 14% of revenues from 14.3% year-over-year due to effective cost management and lower variable costs, reflecting institutionalized processes and disciplined execution that are translating into margin expansion, as seen in the 100 basis point increase in adjusted EBITDA margin to 31.8% despite a 5.8% decline in funeral home admit volume, demonstrating the scalability of their operating platform and ability to maintain profitability through proactive labor management, corporate overhead controls, and targeted technology investments like the Trinity platform rollout, which is expected to enhance customer experience and operating leverage across all funeral homes by end-2026 and combos/cemeteries by early 2027. The funeral service mix is shifting favorably, with a 40 basis point growth in cremation mix over the last three quarters, which management noted is expected to drive higher average revenue per contract (ARPC), and this trend, combined with a 1.6% increase in comparable ARPC in Q1 FY26 and a 15.3% increase in average revenue per property contract in the cemetery segment, supports pricing sophistication and service mix optimization as sustainable levers for revenue growth and margin expansion, independent of volume recovery, aligning with their long-term strategic objective of building a data-driven high-performance platform for sustained organic growth. Carriage Services (CSV) maintains a strong balance sheet with a leverage ratio of 4x, within its target range of 3.5x-4x, and generated $400,000 in free cash flow in Q1 FY26, up 3.5% year-over-year, providing internal liquidity to fund growth initiatives and acquisitions without over-reliance on external financing, while the ATM program offers additional flexibility to pursue disciplined, high-return investments in a measured way, reinforcing confidence in the company's ability to execute its 2030 vision of becoming a premier best-in-class operator with consistent top-tier margins and improved free cash flow generation.

Segments Breakdown of Revenue (2025)

Peer Comparison

Companies in the Personal Services

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	ROL	Rollins Inc	18.70 Bn	35.18	4.77	0.70 Bn
2	SCI	Service Corp International	11.57 Bn	21.59	2.67	5.16 Bn
3	HRB	H&R Block Inc	5.38 Bn	-1,854.19	1.37	1.49 Bn
4	FTDR	Frontdoor, Inc.	5.13 Bn	15.54	2.42	1.17 Bn
5	BFAM	Bright Horizons Family Solutions Inc.	4.26 Bn	22.50	1.43	1.08 Bn
6	CSV	Carriage Services Inc	0.62 Bn	14.18	1.50	0.52 Bn
7	ANDG	Andersen Group Inc.	0.60 Bn	8.74	2.28	0.28 Bn
8	MED	Medifast Inc	0.11 Bn	-5.45	0.32	-

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Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

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