Understanding Carriage Servs's Position In Diversified Consumer Services Industry Compared To Competitors

In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Carriage Servs CSV against its key competitors in the Diversified Consumer Services industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.

Carriage Servs Background

Carriage Services Inc is a provider of funeral and cemetery services and merchandise in the United States. It operates in two business segments: The Funeral Home Operations segment offers burial, cremation, and consultation services; removes and prepares remains; sells caskets, urns, and related funeral merchandise; and enables the use of funeral home facilities for visitation, remembrance, and transportation services. The Cemetery Operations segment provides services, such as mausoleum crypts, private estates, lawn crypt gardens, traditional single burial gravesites, and burial vaults. The majority of revenue is derived from The Funeral Home Operations segment.

By carefully studying Carriage Servs, we can deduce the following trends:

• At 16.63, the stock's Price to Earnings ratio is 0.66x less than the industry average, suggesting favorable growth potential.

• The current Price to Book ratio of 2.54, which is 0.38x the industry average, is substantially lower than the industry average, indicating potential undervaluation.

• With a relatively low Price to Sales ratio of 1.23, which is 0.59x the industry average, the stock might be considered undervalued based on sales performance.

• With a Return on Equity (ROE) of 3.36% that is 9.99% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.

• The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $30 Million is 0.27x below the industry average, suggesting potential lower profitability or financial challenges.

• The gross profit of $40 Million is 0.24x below that of its industry, suggesting potential lower revenue after accounting for production costs.

• The company is witnessing a substantial decline in revenue growth, with a rate of 4.75% compared to the industry average of 5.4%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its equity.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

By evaluating Carriage Servs against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:

• Carriage Servs holds a middle position in terms of the debt-to-equity ratio compared to its top 4 peers.

• This indicates a balanced financial structure with a moderate level of debt and an appropriate reliance on equity financing with a debt-to-equity ratio of 3.09.

Key Takeaways

For Carriage Servs in the Diversified Consumer Services industry, the PE, PB, and PS ratios are all low compared to its peers, indicating potential undervaluation. However, the low ROE, EBITDA, gross profit, and revenue growth suggest underperformance relative to industry standards. This may imply a need for further examination of the company's operational efficiency and growth strategies to align with industry peers.

This article was generated by Benzinga's automated content engine and reviewed by an editor.