SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCI - US8175651046 - Common Stock
77.78 USD
-0.21 (-0.27%)
SCI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 76 industry peers in the Diversified Consumer Services industry. There are concerns on the financial health of SCI while its profitability can be described as average. SCI is not valued too expensively and it also shows a decent 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.
SCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SCI has a Return On Assets (2.91%) which is comparable to the rest of the industry.
SCI has a Return On Equity of 34.12%. This is amongst the best in the industry. SCI outperforms 89.47% of its industry peers.
SCI has a Return On Invested Capital (4.31%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCI is significantly below the industry average of 10.41%.
| 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 73.68% of its industry peers.
In the last couple of years the Profit Margin of SCI has grown nicely.
SCI's Operating Margin of 23.15% is amongst the best of the industry. SCI outperforms 88.16% of its industry peers.
SCI's Operating Margin has improved in the last couple of years.
SCI has a worse Gross Margin (26.44%) than 71.05% of its industry peers.
In the last couple of years the Gross Margin of SCI has grown nicely.
| 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
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.
Compared to 1 year ago, SCI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.81, we must say that SCI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.81, SCI perfoms like the industry average, outperforming 47.37% 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's Debt to FCF ratio of 8.13 is fine compared to the rest of the industry. SCI outperforms 67.11% of its industry peers.
A Debt/Equity ratio of 3.17 is on the high side and indicates that SCI has dependencies on debt financing.
SCI has a worse Debt to Equity ratio (3.17) than 77.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.56
WACC7.63%
2.3 Liquidity
SCI has a Current 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.
SCI has a Current ratio of 0.56. This is amonst the worse of the industry: SCI underperforms 81.58% of its industry peers.
A Quick Ratio of 0.52 indicates that SCI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.52, SCI is doing worse than 81.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
SCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.88%, which is quite good.
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 3.41%.
SCI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.32% yearly.
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 3.62% on average per year.
EPS Next Y10.27%
EPS Next 2Y10.19%
EPS Next 3Y10.08%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y3.37%
Revenue Next 3Y3.62%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 20.63, SCI is valued on the expensive side.
SCI's Price/Earnings ratio is a bit cheaper when compared to the industry. SCI is cheaper than 60.53% of the companies in the same industry.
SCI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.15, which indicates a rather expensive current valuation of SCI.
Based on the Price/Forward Earnings ratio, SCI is valued a bit cheaper than 61.84% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SCI to the average of the S&P500 Index (23.40), we can say SCI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 18.15 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SCI.
SCI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SCI is cheaper than 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.62 | ||
| EV/EBITDA | 11.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SCI does not grow enough to justify the current Price/Earnings ratio.
SCI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.01
PEG (5Y)1.5
EPS Next 2Y10.19%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
SCI has a Yearly Dividend Yield of 1.74%.
Compared to an average industry Dividend Yield of 0.32, SCI pays a better dividend. On top of this SCI pays more dividend than 92.11% of the companies listed in the same industry.
SCI's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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 33.57% 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.
DP33.57%
EPS Next 2Y10.19%
EPS Next 3Y10.08%
NYSE:SCI (12/30/2025, 10:27:45 AM)
77.78
-0.21 (-0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners90.53%
Inst Owner Change0.59%
Ins Owners2.75%
Ins Owner Change-0.29%
Market Cap10.90B
Revenue(TTM)4.29B
Net Income(TTM)534.57M
Analysts84
Price Target96.21 (23.7%)
Short Float %2.6%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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)0.84%
PT rev (3m)4.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 18.15 | ||
| P/S | 2.54 | ||
| P/FCF | 17.62 | ||
| P/OCF | 10.97 | ||
| P/B | 6.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.79 |
EPS(TTM)3.77
EY4.85%
EPS(NY)4.29
Fwd EY5.51%
FCF(TTM)4.41
FCFY5.68%
OCF(TTM)7.09
OCFY9.12%
SpS30.61
BVpS11.18
TBVpS-4.14
PEG (NY)2.01
PEG (5Y)1.5
Graham Number30.79
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 | 0.81 |
F-Score8
WACC7.63%
ROIC/WACC0.56
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 Y10.27%
EPS Next 2Y10.19%
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 2Y3.37%
Revenue Next 3Y3.62%
Revenue Next 5YN/A
EBIT growth 1Y9.97%
EBIT growth 3Y-6.53%
EBIT growth 5Y8.47%
EBIT Next Year42.35%
EBIT Next 3Y16.13%
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 6 / 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 10.27% in the next year.