Is Carriage Services (CSV) Stock Undervalued Right Now?

Zacks Equity Research
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Carriage Services (CSV) is a stock many investors are watching right now. CSV is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.27, while its industry has an average P/E of 16.46. CSV's Forward P/E has been as high as 18.96 and as low as 8.20, with a median of 13.68, all within the past year.

CSV is also sporting a PEG ratio of 0.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CSV's industry has an average PEG of 1.47 right now. Over the past 52 weeks, CSV's PEG has been as high as 1.26 and as low as 0.55, with a median of 0.91.

Another notable valuation metric for CSV is its P/B ratio of 1.86. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CSV's current P/B looks attractive when compared to its industry's average P/B of 3.04. Within the past 52 weeks, CSV's P/B has been as high as 2.24 and as low as 1.11, with a median of 1.69.

Finally, we should also recognize that CSV has a P/CF ratio of 10.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CSV's P/CF compares to its industry's average P/CF of 11.74. Within the past 12 months, CSV's P/CF has been as high as 17.13 and as low as 6.34, with a median of 12.47.

These are only a few of the key metrics included in Carriage Services's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CSV looks like an impressive value stock at the moment.


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