SERVICE CORP INTERNATIONAL (SCI)
US8175651046 - Common Stock
Overall SCI gets a fundamental rating of 4 out of 10. We evaluated SCI against 65 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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
With a decent Return On Assets value of 3.29%, SCI is doing good in the industry, outperforming 73.44% of the companies in the same industry.
SCI's Return On Equity of 34.87% is amongst the best of the industry. SCI outperforms 93.75% of its industry peers.
With a decent Return On Invested Capital value of 4.51%, SCI is doing good in the industry, outperforming 68.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCI is significantly below the industry average of 15.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 34.87% | ||
| ROIC | 4.51% |
ROA(3y)4.05%
ROA(5y)3.68%
ROE(3y)36.9%
ROE(5y)32.08%
ROIC(3y)5.07%
ROIC(5y)4.68%
1.3 Margins
SCI has a better Profit Margin (13.11%) than 90.63% of its industry peers.
In the last couple of years the Profit Margin of SCI has remained more or less at the same level.
With an excellent Operating Margin value of 22.79%, SCI belongs to the best of the industry, outperforming 89.06% 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 26.63%, SCI is doing worse than 78.13% of the companies in the same industry.
SCI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.79% | ||
| PM (TTM) | 13.11% | ||
| GM | 26.63% |
OM growth 3Y-1.43%
OM growth 5Y3.41%
PM growth 3Y-3.74%
PM growth 5Y-1.34%
GM growth 3Y-1.44%
GM growth 5Y2.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCI is destroying value.
SCI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SCI has less shares outstanding
SCI has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that SCI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SCI (0.88) is comparable to the rest of the industry.
The Debt to FCF ratio of SCI is 9.29, which is on the high side as it means it would take SCI, 9.29 years of fcf income to pay off all of its debts.
SCI has a better Debt to FCF ratio (9.29) than 64.06% of its industry peers.
SCI has a Debt/Equity ratio of 3.02. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SCI (3.02) is worse than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.02 | ||
| Debt/FCF | 9.29 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.53
WACC8.46%
2.3 Liquidity
SCI has a Current Ratio of 0.67. 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's Current ratio of 0.67 is on the low side compared to the rest of the industry. SCI is outperformed by 82.81% of its industry peers.
A Quick Ratio of 0.62 indicates that SCI may have some problems paying its short term obligations.
SCI's Quick ratio of 0.62 is on the low side compared to the rest of the industry. SCI is outperformed by 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
SCI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.20%.
The Earnings Per Share has been growing by 14.03% on average over the past years. This is quite good.
The Revenue has decreased by -0.22% in the past year.
SCI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.14% yearly.
EPS 1Y (TTM)-8.2%
EPS 3Y5.8%
EPS 5Y14.03%
EPS growth Q2Q1.09%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y5.3%
Revenue growth 5Y5.14%
Revenue growth Q2Q2.73%
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 9.25% yearly.
SCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.28% yearly.
EPS Next Y6.24%
EPS Next 2Y8.28%
EPS Next 3Y9.25%
EPS Next 5YN/A
Revenue Next Year2.24%
Revenue Next 2Y2.73%
Revenue Next 3Y3.28%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 20.67 indicates a rather expensive valuation of SCI.
SCI's Price/Earnings ratio is a bit cheaper when compared to the industry. SCI is cheaper than 67.19% of the companies in the same industry.
SCI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.46, SCI is valued on the expensive side.
71.88% of the companies in the same industry are more expensive than SCI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SCI to the average of the S&P500 Index (21.35), we can say SCI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 19.46 |
4.2 Price Multiples
SCI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCI is cheaper than 64.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCI is valued a bit cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.72 | ||
| EV/EBITDA | 12.04 |
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)3.31
PEG (5Y)1.47
EPS Next 2Y8.28%
EPS Next 3Y9.25%
5. Dividend
5.1 Amount
SCI has a Yearly Dividend Yield of 1.69%.
Compared to an average industry Dividend Yield of 28.49, SCI pays a better dividend. On top of this SCI pays more dividend than 87.50% of the companies listed in the same industry.
SCI's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
On average, the dividend of SCI grows each year by 10.71%, 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)10.71%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
SCI pays out 31.26% of its income as dividend. This is a sustainable payout ratio.
The dividend of SCI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.26%
EPS Next 2Y8.28%
EPS Next 3Y9.25%
SERVICE CORP INTERNATIONAL
NYSE:SCI (4/26/2024, 7:15:18 PM)
After market: 71.74 0 (0%)71.74
+0.9 (+1.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.67 | ||
| Fwd PE | 19.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.31
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 34.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.79% | ||
| PM (TTM) | 13.11% | ||
| GM | 26.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-8.2%
EPS 3Y5.8%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y5.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y