SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
USA - NYSE:SCI - US8175651046 - Common Stock
80.09 USD
-0.82 (-1.01%)
80.09 USD
0 (0%)
SCI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 74 industry peers in the Diversified Consumer Services industry. SCI scores excellent on profitability, but there are concerns on its financial health. SCI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SCI was profitable.
In the past year SCI had a positive cash flow from operations.
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 2.98%. This is in the better half of the industry: SCI outperforms 60.81% of its industry peers.
SCI has a Return On Equity of 34.29%. This is amongst the best in the industry. SCI outperforms 91.89% of its industry peers.
The Return On Invested Capital of SCI (4.28%) is better than 63.51% 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 9.88%.
| 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 77.03% of the companies in the same industry.
SCI's Profit Margin has improved in the last couple of years.
SCI's Operating Margin of 22.81% is amongst the best of the industry. SCI outperforms 89.19% of its industry peers.
SCI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 26.41%, SCI is not doing good in the industry: 71.62% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SCI has grown nicely.
| 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
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
Based on the Altman-Z score of 0.84, we must say that SCI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.84, SCI perfoms like the industry average, outperforming 45.95% of the companies in the same industry.
The Debt to FCF ratio of SCI is 7.98, which is on the high side as it means it would take SCI, 7.98 years of fcf income to pay off all of its debts.
SCI's Debt to FCF ratio of 7.98 is fine compared to the rest of the industry. SCI outperforms 64.86% of its industry peers.
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: 75.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.19 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.52
WACC8.19%
2.3 Liquidity
SCI has a Current Ratio of 0.61. This is a bad value and indicates that SCI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SCI (0.61) is worse than 77.03% of its industry peers.
SCI has a Quick Ratio of 0.61. 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 (0.56) than 78.38% 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.
The Earnings Per Share has been growing by 13.79% on average over the past years. This is quite good.
Looking at the last year, SCI shows a small growth in Revenue. The Revenue has grown by 2.65% in the last 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)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
SCI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.06% yearly.
Based on estimates for the next years, SCI will show a small growth in Revenue. The Revenue will grow by 3.66% on average per year.
EPS Next Y9.53%
EPS Next 2Y9.88%
EPS Next 3Y10.06%
EPS Next 5YN/A
Revenue Next Year3.01%
Revenue Next 2Y3.15%
Revenue Next 3Y3.66%
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
A Price/Earnings ratio of 21.70 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 68.92% of the companies in the same industry.
SCI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.79, which indicates a rather expensive current valuation of SCI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCI indicates a somewhat cheap valuation: SCI is cheaper than 67.57% of the companies listed in the same industry.
SCI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.7 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCI is valued a bit cheaper than the industry average as 62.16% of the companies are valued more expensively.
77.03% 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 | 17.8 | ||
| EV/EBITDA | 12.28 |
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)2.28
PEG (5Y)1.57
EPS Next 2Y9.88%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, 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 3.05. SCI pays more dividend than 90.54% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, SCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
On average, the dividend of SCI grows each year by 10.53%, which is quite nice.
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
33.29% of the earnings are spent on dividend by SCI. This is a low number and sustainable payout ratio.
The dividend of SCI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.29%
EPS Next 2Y9.88%
EPS Next 3Y10.06%
80.09
-0.82 (-1.01%)
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 Change0.04%
Market Cap11.23B
Analysts84
Price Target92.35 (15.31%)
Short Float %3.56%
Short Ratio4.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)0.93%
PT rev (3m)2.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)1.16%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.7 | ||
| Fwd PE | 18.79 | ||
| P/S | 2.64 | ||
| P/FCF | 17.8 | ||
| P/OCF | 11.17 | ||
| P/B | 7.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.28 |
EPS(TTM)3.69
EY4.61%
EPS(NY)4.26
Fwd EY5.32%
FCF(TTM)4.5
FCFY5.62%
OCF(TTM)7.17
OCFY8.95%
SpS30.28
BVpS11.12
TBVpS-3.82
PEG (NY)2.28
PEG (5Y)1.57
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 | 0.84 |
F-Score7
WACC8.19%
ROIC/WACC0.52
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 Y9.53%
EPS Next 2Y9.88%
EPS Next 3Y10.06%
EPS Next 5YN/A
Revenue 1Y (TTM)2.65%
Revenue growth 3Y0.35%
Revenue growth 5Y5.32%
Sales Q2Q%3.04%
Revenue Next Year3.01%
Revenue Next 2Y3.15%
Revenue Next 3Y3.66%
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%