SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
USA - NYSE:SCI - US8175651046 - Common Stock
81.43 USD
-2.08 (-2.49%)
81.43 USD
0 (0%)
Taking everything into account, SCI scores 5 out of 10 in our fundamental rating. SCI was compared to 78 industry peers in the Diversified Consumer Services industry. SCI scores excellent on profitability, but there are concerns on its financial health. SCI has a correct valuation and a medium growth rate.
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.
In the past 5 years SCI always reported a positive cash flow from operatings.
1.2 Ratios
SCI has a better Return On Assets (2.91%) than 62.82% of its industry peers.
The Return On Equity of SCI (34.12%) is better than 92.31% of its industry peers.
SCI's Return On Invested Capital of 4.31% is fine compared to the rest of the industry. SCI outperforms 65.38% of its industry peers.
SCI had an Average Return On Invested Capital over the past 3 years of 4.60%. This is below the industry average of 9.50%.
| 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
SCI has a Profit Margin of 12.46%. This is in the better half of the industry: SCI outperforms 75.64% of its industry peers.
In the last couple of years the Profit Margin of SCI has grown nicely.
SCI has a better Operating Margin (23.15%) than 89.74% of its industry peers.
SCI's Operating Margin has improved in the last couple of years.
The Gross Margin of SCI (26.44%) is worse than 70.51% of its industry peers.
SCI's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, SCI has an improved debt to assets ratio.
2.2 Solvency
SCI has an Altman-Z score of 0.84. This is a bad value and indicates that SCI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.84, SCI perfoms like the industry average, outperforming 51.28% of the companies in the same industry.
The Debt to FCF ratio of SCI is 8.13, which is on the high side as it means it would take SCI, 8.13 years of fcf income to pay off all of its debts.
SCI has a better Debt to FCF ratio (8.13) than 66.67% of its industry peers.
SCI has a Debt/Equity ratio of 3.17. This is a high value indicating a heavy dependency on external financing.
SCI has a Debt to Equity ratio of 3.17. This is in the lower half of the industry: SCI underperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.57
WACC7.57%
2.3 Liquidity
A Current Ratio of 0.56 indicates that SCI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.56, SCI is doing worse than 78.21% of the companies in the same industry.
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.
With a Quick ratio value of 0.52, SCI is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.88% 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 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
The Earnings Per Share is expected to grow by 10.08% on average over the next years. This is quite good.
Based on estimates for the next years, SCI will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
EPS Next Y10.3%
EPS Next 2Y10.18%
EPS Next 3Y10.08%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y3.33%
Revenue Next 3Y3.6%
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
The Price/Earnings ratio is 21.60, which indicates a rather expensive current valuation of SCI.
Based on the Price/Earnings ratio, SCI is valued a bit cheaper than the industry average as 62.82% of the companies are valued more expensively.
SCI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
SCI is valuated rather expensively with a Price/Forward Earnings ratio of 19.00.
SCI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCI is cheaper than 64.10% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, SCI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 19 |
4.2 Price Multiples
62.82% of the companies in the same industry are more expensive than SCI, based on the Enterprise Value to EBITDA ratio.
SCI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SCI is cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.45 | ||
| EV/EBITDA | 12.37 |
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)2.1
PEG (5Y)1.57
EPS Next 2Y10.18%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
SCI has a Yearly Dividend Yield of 1.53%. 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 1.98. SCI pays more dividend than 91.03% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, SCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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
33.57% of the earnings are spent on dividend by SCI. This is a low number and sustainable payout ratio.
SCI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.57%
EPS Next 2Y10.18%
EPS Next 3Y10.08%
81.43
-2.08 (-2.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners91.47%
Inst Owner Change0.5%
Ins Owners2.77%
Ins Owner Change0.04%
Market Cap11.42B
Revenue(TTM)4.29B
Net Income(TTM)534.57M
Analysts84
Price Target94.05 (15.5%)
Short Float %3.05%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)1.84%
PT rev (3m)3.75%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)3.16%
EPS NY rev (1m)0%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 19 | ||
| P/S | 2.66 | ||
| P/FCF | 18.45 | ||
| P/OCF | 11.49 | ||
| P/B | 7.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.37 |
EPS(TTM)3.77
EY4.63%
EPS(NY)4.28
Fwd EY5.26%
FCF(TTM)4.41
FCFY5.42%
OCF(TTM)7.09
OCFY8.7%
SpS30.6
BVpS11.17
TBVpS-4.14
PEG (NY)2.1
PEG (5Y)1.57
Graham Number30.78
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 | 0.84 |
F-Score8
WACC7.57%
ROIC/WACC0.57
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 Y10.3%
EPS Next 2Y10.18%
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 Year3.27%
Revenue Next 2Y3.33%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
EBIT growth 1Y9.97%
EBIT growth 3Y-6.53%
EBIT growth 5Y8.47%
EBIT Next Year40.96%
EBIT Next 3Y15.44%
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 10.3% in the next year.