Carriage Services, Inc. (CSV): Boston Consulting Group Matrix [10-2024 Updated]
- ✓ Fully Editable: Tailor To Your Needs In Excel Or Sheets
- ✓ Professional Design: Trusted, Industry-Standard Templates
- ✓ Pre-Built For Quick And Efficient Use
- ✓ No Expertise Is Needed; Easy To Follow
Carriage Services, Inc. (CSV) Bundle
In the dynamic landscape of the funeral services industry, Carriage Services, Inc. (CSV) stands out with a diverse portfolio that can be analyzed through the lens of the Boston Consulting Group Matrix. This framework categorizes businesses into four distinct quadrants: Stars, Cash Cows, Dogs, and Question Marks. Each category reveals critical insights about Carriage Services’ performance and growth potential as of 2024, highlighting areas of strength and opportunities for improvement. Discover how these classifications illustrate the company's strategic positioning and what they mean for its future trajectory.
Background of Carriage Services, Inc. (CSV)
Carriage Services, Inc. (CSV) is a leading provider of funeral and cemetery services in the United States. As of September 30, 2024, the company operates 162 funeral homes across 26 states and 31 cemeteries in 11 states. The business is primarily divided into two segments: Funeral Home operations, which account for approximately 65% of total revenue, and Cemetery operations, which represent about 35% of total revenue.
The company generates revenue through the sale of burial and cremation services, related merchandise, and cemetery interment rights, both on an “atneed” and “preneed” basis. Preneed services allow customers to plan and pay for their funeral and cemetery services in advance, which has become a critical component of Carriage Services' business strategy. In the nine months ended September 30, 2024, Carriage Services reported a 28.2% increase in the number of preneed interment rights sold, alongside an 8.4% increase in the average price per interment right sold.
In terms of financial performance, Carriage Services has shown significant growth, with revenues for the nine months ending September 30, 2024, reaching $306.5 million, up from $283.7 million in the same period the previous year. The increase in revenue has been attributed to both higher sales volumes and improved pricing strategies implemented across their service offerings.
Carriage Services has also focused on operational efficiency, achieving a gross profit margin increase from 31.6% to 35.8% year-over-year in the same nine-month timeframe. This improvement is largely due to effective cost management initiatives that have reduced operating expenses as a percentage of revenue.
As of September 30, 2024, the company reported net income of $23.1 million, a slight increase from $21.8 million the previous year, reflecting their ability to enhance profitability despite increases in general and administrative expenses.
Carriage Services is committed to maintaining its competitive edge in the funeral and cemetery industry through strategic acquisitions, operational enhancements, and a focus on customer service. The company’s current initiatives include expanding its preneed sales efforts and optimizing its service offerings to meet changing consumer preferences.
Carriage Services, Inc. (CSV) - BCG Matrix: Stars
Increased revenue from preneed interment rights sales
For the nine months ended September 30, 2024, Carriage Services, Inc. reported a total preneed revenue of $66,150,000, an increase from $47,016,000 in the same period of 2023. The number of preneed interment rights sold increased significantly to 11,127 from 8,680, indicating a growth rate of 28.2% year-over-year.
Significant growth in average price per interment right sold
The average price per interment right sold rose to $5,408 for the nine months ended September 30, 2024, compared to $4,990 in the previous year, marking an 8.4% increase.
Strong operating profit margins, reaching 48.1%
Carriage Services achieved a comparable operating profit margin of 48.1% for the three months ended September 30, 2024, an increase of 1,120 basis points from 37.9% in the same period of 2023.
Effective execution of cost management initiatives
Operating expenses as a percentage of revenue decreased by 11.5% for the three months ended September 30, 2024, with key reductions in salaries and benefits expenses (down 4.7%), promotional expenses (down 2.9%), and merchandise costs (down 1.4%).
Positive cash flow from operations, supporting strategic growth initiatives
Net cash provided by operating activities for the nine months ended September 30, 2024, was reported at $42,716,000, compared to $61,849,000 in the same period of 2023.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Preneed Revenue | $66,150,000 | $47,016,000 | +40.7% |
| Number of Preneed Interment Rights Sold | 11,127 | 8,680 | +28.2% |
| Average Price per Interment Right Sold | $5,408 | $4,990 | +8.4% |
| Operating Profit Margin | 48.1% | 37.9% | +1,120 bps |
| Net Cash from Operations | $42,716,000 | $61,849,000 | -30.9% |
Carriage Services, Inc. (CSV) - BCG Matrix: Cash Cows
Consistent revenue generation from atneed sales
For the nine months ended September 30, 2024, Carriage Services reported atneed revenue of $29,343,000, reflecting a slight increase from $28,353,000 in the same period of 2023.
Solid performance in cemetery operations with stable demand
The cemetery operations generated an operating revenue of $95,339,000 for the nine months ended September 30, 2024, compared to $74,465,000 for the same period in 2023. Adjusted operating profit from cemetery operations increased to $44,900,000 from $30,163,000, indicating strong performance and stable demand.
High percentage of preneed revenue contributing to overall income
Preneed revenue accounted for 69.0% of total operating revenue in the cemetery segment for the nine months ended September 30, 2024, amounting to $66,150,000, up from $47,016,000 in the prior year. This growth was driven by a 28.2% increase in the number of preneed interment rights sold, totaling 11,127 compared to 8,680 in the previous year.
Reliable cash dividends paid to shareholders, indicating financial health
In 2024, Carriage Services declared cash dividends of $0.1125 per share on March 1, June 1, and September 1, totaling $5,098,000 paid in dividends over the nine months. This reflects the company's commitment to returning value to shareholders while maintaining a healthy financial position.
Low operational costs relative to revenue, enhancing profitability
For the nine months ended September 30, 2024, Carriage Services achieved a gross profit of $109,745,000, representing a significant increase from $89,669,000 in the previous year. The operating profit margin for cemetery operations improved to 47.1%, up 660 basis points year-over-year, driven by effective cost management initiatives.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Atneed Revenue | $29,343,000 | $28,353,000 |
| Cemetery Operating Revenue | $95,339,000 | $74,465,000 |
| Preneed Revenue | $66,150,000 | $47,016,000 |
| Cash Dividends Paid | $5,098,000 | $5,000,000 |
| Gross Profit | $109,745,000 | $89,669,000 |
| Operating Profit Margin (Cemetery) | 47.1% | 40.5% |
Carriage Services, Inc. (CSV) - BCG Matrix: Dogs
Underperforming segments with declining contract volumes
Carriage Services, Inc. has experienced a 3.1% decrease in funeral contract volumes during the three months ended September 30, 2024, compared to the same period in 2023, with total funeral contracts recorded at 10,713 for Q3 2024 versus 11,058 in Q3 2023.
Increased competition affecting market share in certain regions
Market dynamics have led to increased competition in the funeral services sector, impacting Carriage Services' market share. The company reported a decrease in average revenue per funeral contract to $5,540 in Q3 2024 from $5,373 in Q3 2023.
Impairments recorded on tradenames and certain assets
For the nine months ended September 30, 2024, Carriage Services recorded $1.955 million in net loss on divestitures, disposals, and impairment charges. The company continues to evaluate its asset portfolio, which includes tradenames that have underperformed.
Limited growth potential in certain legacy business areas
The company has identified limited growth potential within its legacy funeral home operations, with operating revenue from funeral services showing minimal growth. Specifically, funeral home operating revenue increased by only $0.8 million in Q3 2024 compared to Q3 2023.
High operational expenses relative to revenue in some divisions
Carriage Services reported an increase in general, administrative, and other expenses totaling $12.2 million for the three months ended September 30, 2024, an increase of $0.9 million compared to the same period in 2023. This reflects a trend of high operational expenses relative to revenue, impacting profitability.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Funeral Contracts | 10,713 | 11,058 |
| Average Revenue per Contract | $5,540 | $5,373 |
| Net Loss on Divestitures and Impairments | $1.955 million | N/A |
| General and Administrative Expenses | $12.2 million | $11.3 million |
Carriage Services, Inc. (CSV) - BCG Matrix: Question Marks
Fluctuations in death rates impacting revenue predictability.
Carriage Services, Inc. has experienced fluctuations in death rates, which significantly impact revenue predictability. For instance, the company reported a net income of $23.1 million for the nine months ended September 30, 2024, compared to $21.8 million for the same period in 2023. Such fluctuations can lead to variability in atneed revenue, which constituted approximately 31% of total operating revenue in 2024.
Opportunities for expansion in ancillary services like pet cremation.
Carriage Services has identified opportunities for expansion within ancillary services, including pet cremation. The revenue from ancillary services was $3.4 million for the nine months ended September 30, 2024, a slight decrease from $3.4 million in the previous year. The company aims to enhance its offerings in this segment to capture a growing market demand.
Need for strategic partnerships to enhance preneed sales growth.
To bolster preneed sales, Carriage Services has recognized the necessity for strategic partnerships. The number of preneed interment rights sold increased by 28.2% year-over-year, reaching 11,127 in 2024 compared to 8,680 in 2023. This growth underscores the potential for further collaboration to enhance market penetration and sales effectiveness.
Potential for increased market share through targeted marketing efforts.
Carriage Services can potentially increase its market share by implementing targeted marketing efforts. The average price per preneed interment right sold was $5,408 in 2024, up from $4,990 in 2023. This price increase indicates a willingness among consumers to invest in preneed services, suggesting that targeted marketing could effectively drive further sales growth.
Uncertainty surrounding future cash flows due to market volatility.
The company faces uncertainty regarding future cash flows attributed to market volatility. For the nine months ended September 30, 2024, Carriage Services reported cash provided by operating activities of $42.7 million, a decrease from $61.8 million in the same period in 2023. This reduction in cash flow highlights the financial implications of an uncertain market environment on operational stability.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $23.1 | $21.8 |
| Atneed Revenue as % of Total Revenue | 31% | 31% |
| Preneed Interment Rights Sold | 11,127 | 8,680 |
| Average Price per Preneed Interment Right | $5,408 | $4,990 |
| Ancillary Services Revenue (in millions) | $3.4 | $3.4 |
| Cash Provided by Operating Activities (in millions) | $42.7 | $61.8 |
In summary, Carriage Services, Inc. (CSV) demonstrates a mixed portfolio according to the BCG Matrix, showcasing strong Stars through preneed sales and operational efficiency, while also benefiting from the dependable revenue of Cash Cows in atneed sales and cemetery operations. However, the presence of Dogs reveals challenges in declining segments, and the Question Marks highlight the need for strategic initiatives to capitalize on emerging opportunities, such as expanding ancillary services. As CSV navigates these dynamics, its ability to leverage strengths while addressing weaknesses will be crucial for sustained growth.
Article updated on 8 Nov 2024
Resources:
- Carriage Services, Inc. (CSV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Carriage Services, Inc. (CSV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Carriage Services, Inc. (CSV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.