SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
NYSE:SCI - New York Stock Exchange, Inc. - US8175651046 - Common Stock - Currency: USD
Taking everything into account, SCI scores 5 out of 10 in our fundamental rating. SCI was compared to 71 industry peers in the Diversified Consumer Services industry. SCI has an excellent profitability rating, but there are concerns on its financial health. SCI has a correct valuation and a medium growth rate. Finally 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's Return On Assets of 2.98% is in line compared to the rest of the industry. SCI outperforms 57.75% of its industry peers.
The Return On Equity of SCI (34.29%) is better than 92.96% of its industry peers.
SCI's Return On Invested Capital of 4.28% is fine compared to the rest of the industry. SCI outperforms 64.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCI is significantly below the industry average of 10.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 34.29% | ||
| ROIC | 4.28% |
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
With a decent Profit Margin value of 12.60%, SCI is doing good in the industry, outperforming 77.46% of the companies in the same industry.
SCI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.81%, SCI belongs to the best of the industry, outperforming 91.55% 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 26.41%, SCI is doing worse than 70.42% of the companies in the same industry.
SCI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.81% | ||
| PM (TTM) | 12.6% | ||
| GM | 26.41% |
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
SCI has less shares outstanding than it did 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 0.85. 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 (0.85) which is comparable to the rest of the industry.
SCI has a debt to FCF ratio of 7.98. This is a slightly negative value and a sign of low solvency as SCI would need 7.98 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.98, SCI is doing good in the industry, outperforming 66.20% of the companies in the same industry.
A Debt/Equity ratio of 3.19 is on the high side and indicates that SCI has dependencies on debt financing.
With a Debt to Equity ratio value of 3.19, SCI is not doing good in the industry: 78.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.19 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.5
WACC8.63%
2.3 Liquidity
A Current Ratio of 0.61 indicates that SCI may have some problems paying its short term obligations.
The Current ratio of SCI (0.61) is worse than 76.06% of its industry peers.
A Quick Ratio of 0.56 indicates that SCI may have some problems paying its short term obligations.
SCI's Quick ratio of 0.56 is on the low side compared to the rest of the industry. SCI is outperformed by 77.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.85% 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.
SCI shows a small growth in Revenue. In the last year, the Revenue has grown by 2.65%.
The Revenue has been growing slightly by 5.32% on average over the past years.
EPS 1Y (TTM)8.85%
EPS 3Y-8.25%
EPS 5Y13.79%
EPS Q2Q%11.39%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y0.35%
Revenue growth 5Y5.32%
Sales Q2Q%3.04%
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.
Based on estimates for the next years, SCI will show a small growth in Revenue. The Revenue will grow by 3.54% on average per year.
EPS Next Y8.27%
EPS Next 2Y9.28%
EPS Next 3Y11%
EPS Next 5YN/A
Revenue Next Year2.63%
Revenue Next 2Y3.01%
Revenue Next 3Y3.54%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.95, which indicates a rather expensive current valuation of SCI.
SCI's Price/Earnings ratio is a bit cheaper when compared to the industry. SCI is cheaper than 66.20% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.86. SCI is around the same levels.
With a Price/Forward Earnings ratio of 19.21, SCI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SCI is valued a bit cheaper than the industry average as 67.61% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.94, SCI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 19.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCI is valued a bit cheaper than the industry average as 61.97% of the companies are valued more expensively.
76.06% of the companies in the same industry are more expensive than SCI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.27 | ||
| EV/EBITDA | 12.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SCI may justify a higher PE ratio.
PEG (NY)2.65
PEG (5Y)1.59
EPS Next 2Y9.28%
EPS Next 3Y11%
5. Dividend
5.1 Amount
SCI has a Yearly Dividend Yield of 1.59%. 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 3.56. SCI pays more dividend than 90.14% of the companies in the same industry.
SCI's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of SCI is nicely growing with an annual growth rate of 10.53%!
SCI has been paying a dividend for at least 10 years, so it has a reliable track record.
SCI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.53%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
SCI pays out 33.29% of its income as dividend. This is a sustainable payout ratio.
The dividend of SCI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP33.29%
EPS Next 2Y9.28%
EPS Next 3Y11%
NYSE:SCI (8/21/2025, 10:30:55 AM)
80.99
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners93.54%
Inst Owner Change-3.41%
Ins Owners2.77%
Ins Owner Change0.32%
Market Cap11.53B
Analysts84
Price Target91.5 (12.98%)
Short Float %3.44%
Short Ratio4.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend1.2
Dividend Growth(5Y)10.53%
DP33.29%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.59%
Min EPS beat(2)2.5%
Max EPS beat(2)4.68%
EPS beat(4)4
Avg EPS beat(4)2.1%
Min EPS beat(4)0.14%
Max EPS beat(4)4.68%
EPS beat(8)7
Avg EPS beat(8)1.91%
EPS beat(12)11
Avg EPS beat(12)5.24%
EPS beat(16)15
Avg EPS beat(16)13.22%
Revenue beat(2)2
Avg Revenue beat(2)0.31%
Min Revenue beat(2)0.3%
Max Revenue beat(2)0.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)0.32%
Revenue beat(8)5
Avg Revenue beat(8)0.53%
Revenue beat(12)8
Avg Revenue beat(12)1.46%
Revenue beat(16)12
Avg Revenue beat(16)3.25%
PT rev (1m)0.94%
PT rev (3m)1.11%
EPS NQ rev (1m)-1.2%
EPS NQ rev (3m)-5.92%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 19.21 | ||
| P/S | 2.72 | ||
| P/FCF | 18.27 | ||
| P/OCF | 11.47 | ||
| P/B | 7.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.5 |
EPS(TTM)3.69
EY4.56%
EPS(NY)4.22
Fwd EY5.21%
FCF(TTM)4.43
FCFY5.47%
OCF(TTM)7.06
OCFY8.72%
SpS29.83
BVpS10.96
TBVpS-3.77
PEG (NY)2.65
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 34.29% | ||
| ROCE | 5.61% | ||
| ROIC | 4.28% | ||
| ROICexc | 4.35% | ||
| ROICexgc | 4.96% | ||
| OM | 22.81% | ||
| PM (TTM) | 12.6% | ||
| GM | 26.41% | ||
| FCFM | 14.86% |
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-Score7
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.19 | ||
| Debt/FCF | 7.98 | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 111.43% | ||
| Cap/Sales | 8.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.08% | ||
| Profit Quality | 117.97% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 0.85 |
F-Score7
WACC8.63%
ROIC/WACC0.5
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)8.85%
EPS 3Y-8.25%
EPS 5Y13.79%
EPS Q2Q%11.39%
EPS Next Y8.27%
EPS Next 2Y9.28%
EPS Next 3Y11%
EPS Next 5YN/A
Revenue 1Y (TTM)2.65%
Revenue growth 3Y0.35%
Revenue growth 5Y5.32%
Sales Q2Q%3.04%
Revenue Next Year2.63%
Revenue Next 2Y3.01%
Revenue Next 3Y3.54%
Revenue Next 5YN/A
EBIT growth 1Y5.87%
EBIT growth 3Y-6.53%
EBIT growth 5Y8.47%
EBIT Next Year40.96%
EBIT Next 3Y15.44%
EBIT Next 5YN/A
FCF growth 1Y95.92%
FCF growth 3Y-3.42%
FCF growth 5Y7.41%
OCF growth 1Y40.35%
OCF growth 3Y0.87%
OCF growth 5Y8.49%