Carriage Services (CSV) Stock Forecast & Price Target

Carriage Services Inc demonstrated a positive financial trajectory with adjusted free cash flow increasing by 0.7% year-over-year to $42.6 million, translating to $2.76 per share, while revenue from the Cemetery Operations segment surged by 35.7% in the third quarter, highlighting the success of its sales growth initiatives. Additionally, Field EBITDA rose significantly by 24.4% to $44.9 million, benefiting from higher revenue generation and effective cost management strategies, resulting in a robust margin of 44.6%. The company's consistent improvement in preneed cemetery property sales, up 27.1% year-over-year, further emphasizes its solid operational foundation and potential for sustained growth in the funeral and cemetery services market.

Carriage Services Inc. has experienced a notable decline in key financial metrics, with Field EBITDA decreasing by 2.2% to $42.2 million while net income fell 15.3% to $9.9 million, suggesting weakening profitability. The company's Funeral Home Operations segment, which comprises the majority of revenue, saw a 9.1% drop in operating EBITDA, attributed to reduced contract volumes and challenging year-over-year comparisons, further exacerbated by rising operational expenses linked to system investments. Additionally, overall revenue declined by 1.1% in the fourth quarter, driven primarily by a 4.3% decrease in funeral revenue, indicating continued struggles within the core business amid shifting demographic trends post-COVID.