Is Carriage Services (CSV) Stock Undervalued Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Carriage Services (CSV). CSV is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.20, which compares to its industry's average of 15.94. Over the last 12 months, CSV's Forward P/E has been as high as 17.27 and as low as 10.45, with a median of 13.69.

Investors will also notice that CSV has a PEG ratio of 0.95. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CSV's PEG compares to its industry's average PEG of 1.28. Over the last 12 months, CSV's PEG has been as high as 1.15 and as low as 0.70, with a median of 0.91.

Another valuation metric that we should highlight is CSV's P/B ratio of 1.57. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.73. CSV's P/B has been as high as 2.31 and as low as 1.15, with a median of 1.89, over the past year.

Finally, investors should note that CSV has a P/CF ratio of 6.47. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.14. Over the past 52 weeks, CSV's P/CF has been as high as 8.38 and as low as 4.75, with a median of 7.17.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Carriage Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CSV feels like a great value stock at the moment.