SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
NYSE:SCI - New York Stock Exchange, Inc. - US8175651046 - Common Stock - Currency: USD
SCI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 70 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 is not valued too expensively and it also shows a decent growth rate. SCI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SCI had positive earnings in the past year.
SCI had a positive operating cash flow in the past year.
In the past 5 years SCI has always been profitable.
Each year in the past 5 years SCI had a positive operating cash flow.
1.2 Ratios
SCI has a Return On Assets of 3.06%. This is in the better half of the industry: SCI outperforms 61.43% of its industry peers.
With an excellent Return On Equity value of 32.11%, SCI belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.45%, SCI is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SCI is significantly below the industry average of 10.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 32.11% | ||
| ROIC | 4.45% |
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 (12.58%) is better than 82.86% of its industry peers.
SCI's Profit Margin has improved in the last couple of years.
SCI has a better Operating Margin (22.90%) than 92.86% of its industry peers.
In the last couple of years the Operating Margin of SCI has grown nicely.
SCI has a worse Gross Margin (26.28%) than 68.57% of its industry peers.
In the last couple of years the Gross Margin of SCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.9% | ||
| PM (TTM) | 12.58% | ||
| GM | 26.28% |
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.
The number of shares outstanding for SCI has been reduced compared to 1 year ago.
The number of shares outstanding for SCI has been reduced compared to 5 years ago.
SCI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that SCI is in the distress zone and has some risk of bankruptcy.
SCI has a Altman-Z score (0.87) which is comparable to the rest of the industry.
The Debt to FCF ratio of SCI is 7.44, which is on the high side as it means it would take SCI, 7.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SCI (7.44) is better than 64.29% of its industry peers.
SCI has a Debt/Equity ratio of 2.87. This is a high value indicating a heavy dependency on external financing.
SCI's Debt to Equity ratio of 2.87 is on the low side compared to the rest of the industry. SCI is outperformed by 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.87 | ||
| Debt/FCF | 7.44 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.6
WACC7.48%
2.3 Liquidity
SCI has a Current Ratio of 0.51. 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 Current ratio (0.51) than 77.14% of its industry peers.
A Quick Ratio of 0.46 indicates that SCI may have some problems paying its short term obligations.
SCI's Quick ratio of 0.46 is on the low side compared to the rest of the industry. SCI is outperformed by 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.96% over the past year.
Measured over the past years, SCI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.79% on average per year.
The Revenue has been growing slightly by 2.40% in the past year.
SCI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.32% yearly.
EPS 1Y (TTM)4.96%
EPS 3Y-8.25%
EPS 5Y13.79%
EPS Q2Q%7.87%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y0.35%
Revenue growth 5Y5.32%
Sales Q2Q%2.75%
3.2 Future
Based on estimates for the next years, SCI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.00% on average per year.
The Revenue is expected to grow by 3.46% on average over the next years.
EPS Next Y8.27%
EPS Next 2Y9.28%
EPS Next 3Y11%
EPS Next 5YN/A
Revenue Next Year2.58%
Revenue Next 2Y3%
Revenue Next 3Y3.46%
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
A Price/Earnings ratio of 21.82 indicates a rather expensive valuation of SCI.
Based on the Price/Earnings ratio, SCI is valued a bit cheaper than 67.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of SCI to the average of the S&P500 Index (26.32), we can say SCI is valued inline with the index average.
The Price/Forward Earnings ratio is 18.64, which indicates a rather expensive current valuation of SCI.
Based on the Price/Forward Earnings ratio, SCI is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
SCI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 18.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCI indicates a somewhat cheap valuation: SCI is cheaper than 61.43% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SCI is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.25 | ||
| EV/EBITDA | 12.15 |
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)2.64
PEG (5Y)1.58
EPS Next 2Y9.28%
EPS Next 3Y11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, SCI has a reasonable but not impressive dividend return.
SCI's Dividend Yield is rather good when compared to the industry average which is at 4.32. SCI pays more dividend than 90.00% of the companies in the same industry.
SCI's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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 33.26% of its income as dividend. This is a sustainable payout ratio.
SCI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP33.26%
EPS Next 2Y9.28%
EPS Next 3Y11%
NYSE:SCI (6/16/2025, 12:53:06 PM)
78.57
+0.09 (+0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners91.59%
Inst Owner Change-4.99%
Ins Owners2.74%
Ins Owner Change0.85%
Market Cap11.19B
Analysts84
Price Target90.5 (15.18%)
Short Float %4.2%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend1.2
Dividend Growth(5Y)10.53%
DP33.26%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.41%
Min EPS beat(2)0.14%
Max EPS beat(2)4.68%
EPS beat(4)3
Avg EPS beat(4)-0.95%
Min EPS beat(4)-9.68%
Max EPS beat(4)4.68%
EPS beat(8)7
Avg EPS beat(8)1.71%
EPS beat(12)11
Avg EPS beat(12)5.12%
EPS beat(16)15
Avg EPS beat(16)15.35%
Revenue beat(2)1
Avg Revenue beat(2)0.06%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)0.3%
Revenue beat(4)1
Avg Revenue beat(4)-0.34%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)0.3%
Revenue beat(8)5
Avg Revenue beat(8)0.71%
Revenue beat(12)8
Avg Revenue beat(12)1.73%
Revenue beat(16)12
Avg Revenue beat(16)4.14%
PT rev (1m)0%
PT rev (3m)0.76%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-5.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 18.64 | ||
| P/S | 2.65 | ||
| P/FCF | 17.25 | ||
| P/OCF | 10.8 | ||
| P/B | 6.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.15 |
EPS(TTM)3.6
EY4.58%
EPS(NY)4.22
Fwd EY5.37%
FCF(TTM)4.55
FCFY5.8%
OCF(TTM)7.28
OCFY9.26%
SpS29.61
BVpS11.6
TBVpS-3.06
PEG (NY)2.64
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 32.11% | ||
| ROCE | 5.84% | ||
| ROIC | 4.45% | ||
| ROICexc | 4.52% | ||
| ROICexgc | 5.18% | ||
| OM | 22.9% | ||
| PM (TTM) | 12.58% | ||
| GM | 26.28% | ||
| FCFM | 15.38% |
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%
ROICexcg growth 3Y-10.1%
ROICexcg 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-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.87 | ||
| Debt/FCF | 7.44 | ||
| Debt/EBITDA | 3.65 | ||
| Cap/Depr | 116.61% | ||
| Cap/Sales | 9.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.82% | ||
| Profit Quality | 122.29% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 0.87 |
F-Score6
WACC7.48%
ROIC/WACC0.6
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)4.96%
EPS 3Y-8.25%
EPS 5Y13.79%
EPS Q2Q%7.87%
EPS Next Y8.27%
EPS Next 2Y9.28%
EPS Next 3Y11%
EPS Next 5YN/A
Revenue 1Y (TTM)2.4%
Revenue growth 3Y0.35%
Revenue growth 5Y5.32%
Sales Q2Q%2.75%
Revenue Next Year2.58%
Revenue Next 2Y3%
Revenue Next 3Y3.46%
Revenue Next 5YN/A
EBIT growth 1Y4.67%
EBIT growth 3Y-6.53%
EBIT growth 5Y8.47%
EBIT Next Year41.6%
EBIT Next 3Y15.66%
EBIT Next 5YN/A
FCF growth 1Y101.25%
FCF growth 3Y-3.42%
FCF growth 5Y7.41%
OCF growth 1Y45.27%
OCF growth 3Y0.87%
OCF growth 5Y8.49%