SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCI - US8175651046 - Common Stock
78.83 USD
-0.46 (-0.58%)
78.83 USD
0 (0%)
Overall SCI gets a fundamental rating of 5 out of 10. We evaluated SCI against 76 industry peers in the Diversified Consumer Services industry. While SCI has a great profitability rating, there are quite some concerns on its financial health. SCI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SCI was profitable.
SCI had a positive operating cash flow in the past year.
SCI had positive earnings in each of the past 5 years.
Each year in the past 5 years SCI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.91%, SCI is in line with its industry, outperforming 59.21% of the companies in the same industry.
With an excellent Return On Equity value of 34.12%, SCI belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
The Return On Invested Capital of SCI (4.31%) is better than 60.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCI is below the industry average of 8.97%.
| 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
The Profit Margin of SCI (12.46%) is better than 76.32% of its industry peers.
SCI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.15%, SCI belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
SCI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 26.44%, SCI is doing worse than 73.68% of the companies in the same industry.
In the last couple of years the Gross Margin of SCI has grown nicely.
| 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
SCI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SCI has less shares outstanding
Compared to 5 years ago, SCI has less shares outstanding
SCI has a better debt/assets ratio than last year.
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 47.37% of its industry peers.
SCI has a debt to FCF ratio of 8.13. This is a slightly negative value and a sign of low solvency as SCI would need 8.13 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.13, SCI is doing good in the industry, outperforming 67.11% of the companies in the same industry.
A Debt/Equity ratio of 3.17 is on the high side and indicates that SCI has dependencies on debt financing.
SCI has a worse Debt to Equity ratio (3.17) than 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.56
WACC7.63%
2.3 Liquidity
A Current Ratio of 0.56 indicates that SCI may have some problems paying its short term obligations.
SCI's Current ratio of 0.56 is on the low side compared to the rest of the industry. SCI is outperformed by 82.89% 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 82.89% 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.
SCI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.79% yearly.
SCI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.41%.
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 Y10.27%
EPS Next 2Y10.19%
EPS Next 3Y10.08%
EPS Next 5YN/A
Revenue Next Year3.25%
Revenue Next 2Y3.36%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 20.91, the valuation of SCI can be described as rather expensive.
Based on the Price/Earnings ratio, SCI is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SCI to the average of the S&P500 Index (26.54), we can say SCI is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.39 indicates a rather expensive valuation of SCI.
Based on the Price/Forward Earnings ratio, SCI is valued a bit cheaper than 61.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, SCI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 18.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCI is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SCI is valued a bit cheaper than the industry average as 71.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.86 | ||
| EV/EBITDA | 11.92 |
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)2.04
PEG (5Y)1.52
EPS Next 2Y10.19%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
SCI has a Yearly Dividend Yield of 1.79%. Purely for dividend investing, there may be better candidates out there.
SCI's Dividend Yield is rather good when compared to the industry average which is at 1.70. SCI pays more dividend than 92.11% of the companies in the same industry.
SCI's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
The dividend of SCI is nicely growing with an annual growth rate of 10.53%!
SCI has paid a dividend for at least 10 years, which is 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
SCI pays out 33.57% of its income as dividend. This is a sustainable payout ratio.
SCI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.57%
EPS Next 2Y10.19%
EPS Next 3Y10.08%
78.83
-0.46 (-0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners90.53%
Inst Owner Change0.59%
Ins Owners2.75%
Ins Owner Change-0.29%
Market Cap11.05B
Revenue(TTM)4.29B
Net Income(TTM)534.57M
Analysts84
Price Target96.21 (22.05%)
Short Float %2.49%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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)2.29%
PT rev (3m)4.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 18.39 | ||
| P/S | 2.58 | ||
| P/FCF | 17.86 | ||
| P/OCF | 11.12 | ||
| P/B | 7.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.92 |
EPS(TTM)3.77
EY4.78%
EPS(NY)4.29
Fwd EY5.44%
FCF(TTM)4.41
FCFY5.6%
OCF(TTM)7.09
OCFY8.99%
SpS30.61
BVpS11.18
TBVpS-4.14
PEG (NY)2.04
PEG (5Y)1.52
Graham Number30.79
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
WACC7.63%
ROIC/WACC0.56
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 Y10.27%
EPS Next 2Y10.19%
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 Year3.25%
Revenue Next 2Y3.36%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
EBIT growth 1Y9.97%
EBIT growth 3Y-6.53%
EBIT growth 5Y8.47%
EBIT Next Year42.35%
EBIT Next 3Y16.13%
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 10.27% in the next year.