Carriage Services (CSV) Stock Forecast & Price Target

Carriage Services Inc. has demonstrated a solid growth trajectory, with operating revenue excluding divestitures increasing by 5.2% year-over-year, primarily attributed to a substantial 21.4% rise in cemetery preneed sales. The company also reported a notable increase in adjusted free cash flow, rising by 9.5% to $39.3 million, alongside a 9.0% increase in cash flow from operations to $46.6 million for the first nine months of fiscal 2025. Moreover, both financial operating EBITDA and cemetery operating EBITDA experienced robust growth, with the former increasing by 23.5% and the latter by 11.3%, reflecting operational efficiency and profitability in its core segments.

Carriage Services Inc. has experienced notable declines in its financial performance, with funeral operating EBITDA decreasing by 4.8% to $20.6 million, primarily affected by reduced operating income that fell 23.5% to $17.5 million, largely due to increased net losses from divestitures and impairment charges. Additionally, net income decreased by 33.4% to $6.6 million, significantly missing both internal estimates and consensus projections, indicating ongoing challenges in profitability. The company faces further pressures from depressed funeral contract volumes and macroeconomic factors impacting pre-need sales, which heighten concerns over future revenue stability.