SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
USA - NYSE:SCI - US8175651046 - Common Stock
78.49 USD
-0.54 (-0.68%)
78.49 USD
0 (0%)
Taking everything into account, SCI scores 5 out of 10 in our fundamental rating. SCI was compared to 79 industry peers in the Diversified Consumer Services industry. While SCI belongs to the best of the industry regarding profitability, there are concerns on its financial health. SCI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SCI was profitable.
SCI had a positive operating cash flow in the past year.
Each year in the past 5 years SCI has been profitable.
SCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SCI has a Return On Assets of 2.91%. This is comparable to the rest of the industry: SCI outperforms 58.23% of its industry peers.
SCI has a Return On Equity of 34.12%. This is amongst the best in the industry. SCI outperforms 91.14% of its industry peers.
The Return On Invested Capital of SCI (4.31%) is better than 60.76% of its industry peers.
SCI had an Average Return On Invested Capital over the past 3 years of 4.60%. This is significantly below the industry average of 10.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 34.12% | ||
| ROIC | 4.31% |
ROA(3y)3.34%
ROA(5y)3.74%
ROE(3y)33.19%
ROE(5y)34.21%
ROIC(3y)4.6%
ROIC(5y)4.88%
1.3 Margins
SCI has a Profit Margin of 12.46%. This is in the better half of the industry: SCI outperforms 74.68% of its industry peers.
In the last couple of years the Profit Margin of SCI has grown nicely.
SCI has a better Operating Margin (23.15%) than 89.87% of its industry peers.
SCI's Operating Margin has improved in the last couple of years.
SCI's Gross Margin of 26.44% is on the low side compared to the rest of the industry. SCI is outperformed by 72.15% of its industry peers.
SCI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.15% | ||
| PM (TTM) | 12.46% | ||
| GM | 26.44% |
OM growth 3Y-6.86%
OM growth 5Y2.99%
PM growth 3Y-13.86%
PM growth 5Y1.61%
GM growth 3Y-6.56%
GM growth 5Y2.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCI is destroying value.
SCI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SCI has been reduced compared to 5 years ago.
The debt/assets ratio for SCI has been reduced compared to a year ago.
2.2 Solvency
SCI has an Altman-Z score of 0.82. This is a bad value and indicates that SCI is not financially healthy and even has some risk of bankruptcy.
SCI has a Altman-Z score of 0.82. This is comparable to the rest of the industry: SCI outperforms 49.37% of its industry peers.
The Debt to FCF ratio of SCI is 8.13, which is on the high side as it means it would take SCI, 8.13 years of fcf income to pay off all of its debts.
SCI has a Debt to FCF ratio of 8.13. This is in the better half of the industry: SCI outperforms 67.09% of its industry peers.
SCI has a Debt/Equity ratio of 3.17. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.17, SCI is doing worse than 75.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.53
WACC8.13%
2.3 Liquidity
SCI has a Current Ratio of 0.56. This is a bad value and indicates that SCI is not financially healthy enough and could expect problems in meeting its short term obligations.
SCI has a Current ratio of 0.56. This is amonst the worse of the industry: SCI underperforms 81.01% of its industry peers.
SCI has a Quick Ratio of 0.56. This is a bad value and indicates that SCI is not financially healthy enough and could expect problems in meeting its short term obligations.
SCI has a worse Quick ratio (0.52) than 79.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
SCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.88%, which is quite good.
The Earnings Per Share has been growing by 13.79% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.41% in the past year.
Measured over the past years, SCI shows a small growth in Revenue. The Revenue has been growing by 5.32% on average per year.
EPS 1Y (TTM)10.88%
EPS 3Y-8.25%
EPS 5Y13.79%
EPS Q2Q%10.13%
Revenue 1Y (TTM)3.41%
Revenue growth 3Y0.35%
Revenue growth 5Y5.32%
Sales Q2Q%4.35%
3.2 Future
SCI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.08% yearly.
The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y10.3%
EPS Next 2Y10.18%
EPS Next 3Y10.08%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y3.33%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.82, SCI is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as SCI.
Compared to an average S&P500 Price/Earnings ratio of 25.07, SCI is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.32, the valuation of SCI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SCI is valued a bit cheaper than the industry average as 62.03% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.08. SCI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 18.32 |
4.2 Price Multiples
SCI's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCI indicates a somewhat cheap valuation: SCI is cheaper than 67.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.79 | ||
| EV/EBITDA | 11.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SCI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)1.51
EPS Next 2Y10.18%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
SCI has a Yearly Dividend Yield of 1.70%.
SCI's Dividend Yield is rather good when compared to the industry average which is at 2.05. SCI pays more dividend than 92.41% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, SCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
On average, the dividend of SCI grows each year by 10.53%, which is quite nice.
SCI has been paying a dividend for at least 10 years, so it has a reliable track record.
SCI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.53%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
33.57% of the earnings are spent on dividend by SCI. This is a low number and sustainable payout ratio.
SCI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.57%
EPS Next 2Y10.18%
EPS Next 3Y10.08%
78.49
-0.54 (-0.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners91.47%
Inst Owner Change0.65%
Ins Owners2.77%
Ins Owner Change-0.41%
Market Cap11.01B
Revenue(TTM)4.29B
Net Income(TTM)534.57M
Analysts84
Price Target94.05 (19.82%)
Short Float %2.78%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend1.2
Dividend Growth(5Y)10.53%
DP33.57%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.14%
Min EPS beat(2)2.5%
Max EPS beat(2)3.78%
EPS beat(4)4
Avg EPS beat(4)2.78%
Min EPS beat(4)0.14%
Max EPS beat(4)4.68%
EPS beat(8)7
Avg EPS beat(8)0.89%
EPS beat(12)11
Avg EPS beat(12)2.9%
EPS beat(16)15
Avg EPS beat(16)7.72%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0.32%
Max Revenue beat(2)0.48%
Revenue beat(4)3
Avg Revenue beat(4)0.23%
Min Revenue beat(4)-0.18%
Max Revenue beat(4)0.48%
Revenue beat(8)5
Avg Revenue beat(8)0.42%
Revenue beat(12)8
Avg Revenue beat(12)0.8%
Revenue beat(16)12
Avg Revenue beat(16)2.23%
PT rev (1m)1.84%
PT rev (3m)2.79%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)0.71%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 18.32 | ||
| P/S | 2.57 | ||
| P/FCF | 17.79 | ||
| P/OCF | 11.07 | ||
| P/B | 7.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.84 |
EPS(TTM)3.77
EY4.8%
EPS(NY)4.28
Fwd EY5.46%
FCF(TTM)4.41
FCFY5.62%
OCF(TTM)7.09
OCFY9.03%
SpS30.6
BVpS11.17
TBVpS-4.14
PEG (NY)2.02
PEG (5Y)1.51
Graham Number30.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 34.12% | ||
| ROCE | 5.64% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.37% | ||
| ROICexgc | 4.98% | ||
| OM | 23.15% | ||
| PM (TTM) | 12.46% | ||
| GM | 26.44% | ||
| FCFM | 14.42% |
ROA(3y)3.34%
ROA(5y)3.74%
ROE(3y)33.19%
ROE(5y)34.21%
ROIC(3y)4.6%
ROIC(5y)4.88%
ROICexc(3y)4.67%
ROICexc(5y)4.95%
ROICexgc(3y)5.58%
ROICexgc(5y)5.93%
ROCE(3y)6.04%
ROCE(5y)6.4%
ROICexgc growth 3Y-10.1%
ROICexgc growth 5Y2.9%
ROICexc growth 3Y-9.94%
ROICexc growth 5Y3.38%
OM growth 3Y-6.86%
OM growth 5Y2.99%
PM growth 3Y-13.86%
PM growth 5Y1.61%
GM growth 3Y-6.56%
GM growth 5Y2.05%
F-Score8
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 8.13 | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 110.18% | ||
| Cap/Sales | 8.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.53% | ||
| Profit Quality | 115.77% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.82 |
F-Score8
WACC8.13%
ROIC/WACC0.53
Cap/Depr(3y)121.12%
Cap/Depr(5y)111.78%
Cap/Sales(3y)9.04%
Cap/Sales(5y)8.15%
Profit Quality(3y)94.08%
Profit Quality(5y)94.38%
High Growth Momentum
Growth
EPS 1Y (TTM)10.88%
EPS 3Y-8.25%
EPS 5Y13.79%
EPS Q2Q%10.13%
EPS Next Y10.3%
EPS Next 2Y10.18%
EPS Next 3Y10.08%
EPS Next 5YN/A
Revenue 1Y (TTM)3.41%
Revenue growth 3Y0.35%
Revenue growth 5Y5.32%
Sales Q2Q%4.35%
Revenue Next Year3.27%
Revenue Next 2Y3.33%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
EBIT growth 1Y9.97%
EBIT growth 3Y-6.53%
EBIT growth 5Y8.47%
EBIT Next Year40.96%
EBIT Next 3Y15.44%
EBIT Next 5YN/A
FCF growth 1Y64.12%
FCF growth 3Y-3.42%
FCF growth 5Y7.41%
OCF growth 1Y30.48%
OCF growth 3Y0.87%
OCF growth 5Y8.49%
SERVICE CORP INTERNATIONAL / SCI FAQ
What is the ChartMill fundamental rating of SERVICE CORP INTERNATIONAL (SCI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SCI.
What is the valuation status for SCI stock?
ChartMill assigns a valuation rating of 4 / 10 to SERVICE CORP INTERNATIONAL (SCI). This can be considered as Fairly Valued.
Can you provide the profitability details for SERVICE CORP INTERNATIONAL?
SERVICE CORP INTERNATIONAL (SCI) has a profitability rating of 7 / 10.
Can you provide the financial health for SCI stock?
The financial health rating of SERVICE CORP INTERNATIONAL (SCI) is 3 / 10.
Can you provide the expected EPS growth for SCI stock?
The Earnings per Share (EPS) of SERVICE CORP INTERNATIONAL (SCI) is expected to grow by 10.3% in the next year.