SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
USA - NYSE:SCI - US8175651046 - Common Stock
83.51 USD
-0.26 (-0.31%)
83.51 USD
0 (0%)
Overall SCI gets a fundamental rating of 5 out of 10. We evaluated SCI against 77 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 decent growth rate and is not valued too expensively.
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.
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
SCI has a better Return On Assets (2.98%) than 62.34% of its industry peers.
SCI's Return On Equity of 34.29% is amongst the best of the industry. SCI outperforms 92.21% of its industry peers.
SCI has a Return On Invested Capital of 4.28%. This is in the better half of the industry: SCI outperforms 64.94% 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 9.47%.
| 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 76.62% of the companies in the same industry.
SCI's Profit Margin has improved in the last couple of years.
The Operating Margin of SCI (22.81%) is better than 89.61% of its industry peers.
In the last couple of years the Operating Margin of SCI has grown nicely.
SCI has a worse Gross Margin (26.41%) than 71.43% of its industry peers.
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.
The number of shares outstanding for SCI has been reduced compared to 1 year ago.
Compared to 5 years ago, SCI has less shares outstanding
The debt/assets ratio for SCI has been reduced compared to a year ago.
2.2 Solvency
SCI has an Altman-Z score of 0.86. This is a bad value and indicates that SCI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SCI (0.86) 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.
SCI's Debt to FCF ratio of 7.98 is fine compared to the rest of the industry. SCI outperforms 66.23% of its industry peers.
SCI has a Debt/Equity ratio of 3.19. This is a high value indicating a heavy dependency on external financing.
SCI's Debt to Equity ratio of 3.19 is on the low side compared to the rest of the industry. SCI is outperformed by 74.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.19 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.58
WACC7.36%
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.
SCI has a Current ratio of 0.61. This is in the lower half of the industry: SCI underperforms 76.62% 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 77.92% 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 10.88% over the past year.
SCI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.79% yearly.
SCI shows a small growth in Revenue. In the last year, the Revenue has grown by 2.11%.
The Revenue has been growing slightly by 5.32% on average over the past years.
EPS 1Y (TTM)10.88%
EPS 3Y-8.25%
EPS 5Y13.79%
EPS Q2Q%10.13%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y0.35%
Revenue growth 5Y5.32%
Sales Q2Q%4.35%
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
Based on the Price/Earnings ratio of 22.15, the valuation of SCI can be described as rather expensive.
SCI's Price/Earnings ratio is a bit cheaper when compared to the industry. SCI is cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.10, SCI is valued at the same level.
A Price/Forward Earnings ratio of 19.59 indicates a rather expensive valuation of SCI.
Based on the Price/Forward Earnings ratio, SCI is valued a bit cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, SCI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.15 | ||
| Fwd PE | 19.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCI is valued a bit cheaper than 63.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCI is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.56 | ||
| EV/EBITDA | 12.67 |
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)2.33
PEG (5Y)1.61
EPS Next 2Y9.88%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, 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 1.95. SCI pays more dividend than 90.91% of the companies in the same industry.
SCI's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.29%
EPS Next 2Y9.88%
EPS Next 3Y10.06%
83.51
-0.26 (-0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners91.47%
Inst Owner Change0.64%
Ins Owners2.77%
Ins Owner Change0.04%
Market Cap11.71B
Revenue(TTM)4.19B
Net Income(TTM)534.93M
Analysts84
Price Target94.05 (12.62%)
Short Float %3.05%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend1.2
Dividend Growth(5Y)10.53%
DP33.29%
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%
PT rev (3m)1.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)0%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.15 | ||
| Fwd PE | 19.59 | ||
| P/S | 2.76 | ||
| P/FCF | 18.56 | ||
| P/OCF | 11.65 | ||
| P/B | 7.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.67 |
EPS(TTM)3.77
EY4.51%
EPS(NY)4.26
Fwd EY5.1%
FCF(TTM)4.5
FCFY5.39%
OCF(TTM)7.17
OCFY8.59%
SpS30.28
BVpS11.12
TBVpS-3.82
PEG (NY)2.33
PEG (5Y)1.61
Graham Number30.72
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%
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-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 | 0.86 |
F-Score7
WACC7.36%
ROIC/WACC0.58
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 Y9.53%
EPS Next 2Y9.88%
EPS Next 3Y10.06%
EPS Next 5YN/A
Revenue 1Y (TTM)2.11%
Revenue growth 3Y0.35%
Revenue growth 5Y5.32%
Sales Q2Q%4.35%
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%
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 9.53% in the next year.