SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
NYSE:SCI - New York Stock Exchange, Inc. - US8175651046 - Common Stock
Overall SCI gets a fundamental rating of 4 out of 10. We evaluated SCI against 71 industry peers in the Diversified Consumer Services industry. While SCI has a great profitability rating, there are quite some concerns on its financial health. SCI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SCI had positive earnings in the past year.
In the past year SCI had a positive cash flow from operations.
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 of 2.91%. This is in the better half of the industry: SCI outperforms 63.49% of its industry peers.
Looking at the Return On Equity, with a value of 31.08%, SCI belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
SCI has a Return On Invested Capital of 4.09%. This is in the better half of the industry: SCI outperforms 60.32% 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 11.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 31.08% | ||
| ROIC | 4.09% |
ROA(3y)4.05%
ROA(5y)3.68%
ROE(3y)36.9%
ROE(5y)32.08%
ROIC(3y)5.07%
ROIC(5y)4.68%
1.3 Margins
Looking at the Profit Margin, with a value of 12.19%, SCI belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
In the last couple of years the Profit Margin of SCI has remained more or less at the same level.
With an excellent Operating Margin value of 21.77%, SCI belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Operating Margin of SCI has grown nicely.
With a Gross Margin value of 25.84%, SCI is not doing good in the industry: 76.19% 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 | 21.77% | ||
| PM (TTM) | 12.19% | ||
| GM | 25.84% |
OM growth 3Y-1.43%
OM growth 5Y3.41%
PM growth 3Y-3.74%
PM growth 5Y-1.34%
GM growth 3Y-1.44%
GM growth 5Y2.25%
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
Compared to 5 years ago, SCI has less shares outstanding
The debt/assets ratio for SCI has remained at the same level 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's Altman-Z score of 0.85 is in line compared to the rest of the industry. SCI outperforms 49.21% of its industry peers.
The Debt to FCF ratio of SCI is 8.22, which is on the high side as it means it would take SCI, 8.22 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.22, SCI perfoms like the industry average, outperforming 58.73% of the companies in the same industry.
SCI has a Debt/Equity ratio of 2.92. This is a high value indicating a heavy dependency on external financing.
SCI has a worse Debt to Equity ratio (2.92) than 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.92 | ||
| Debt/FCF | 8.22 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.36
WACC11.36%
2.3 Liquidity
A Current Ratio of 0.52 indicates that SCI may have some problems paying its short term obligations.
The Current ratio of SCI (0.52) is worse than 87.30% of its industry peers.
A Quick Ratio of 0.48 indicates that SCI may have some problems paying its short term obligations.
SCI has a worse Quick ratio (0.48) than 87.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for SCI have decreased by -1.73% in the last year.
SCI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.03% yearly.
SCI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.90%.
SCI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.14% yearly.
EPS 1Y (TTM)-1.73%
EPS 3Y5.8%
EPS 5Y14.03%
EPS Q2Q%1.28%
Revenue 1Y (TTM)1.9%
Revenue growth 3Y5.3%
Revenue growth 5Y5.14%
Sales Q2Q%1.21%
3.2 Future
The Earnings Per Share is expected to grow by 8.33% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.31% on average over the next years.
EPS Next Y2.57%
EPS Next 2Y7.31%
EPS Next 3Y8.33%
EPS Next 5YN/A
Revenue Next Year2.75%
Revenue Next 2Y3.13%
Revenue Next 3Y3.31%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
SCI is valuated rather expensively with a Price/Earnings ratio of 22.63.
60.32% of the companies in the same industry are more expensive than SCI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SCI to the average of the S&P500 Index (27.96), we can say SCI is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.25, SCI is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCI indicates a somewhat cheap valuation: SCI is cheaper than 65.08% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.11. SCI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 19.25 |
4.2 Price Multiples
61.90% 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 69.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.94 | ||
| EV/EBITDA | 12.85 |
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)8.8
PEG (5Y)1.61
EPS Next 2Y7.31%
EPS Next 3Y8.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, SCI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.24, SCI pays a better dividend. On top of this SCI pays more dividend than 87.30% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.29, SCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
On average, the dividend of SCI grows each year by 10.71%, 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)10.71%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
SCI pays out 34.27% 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.
DP34.27%
EPS Next 2Y7.31%
EPS Next 3Y8.33%
SERVICE CORP INTERNATIONAL
NYSE:SCI (1/17/2025, 8:26:22 PM)
After market: 76.93 0 (0%)76.93
+0.24 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners90.44%
Inst Owner Change-0.41%
Ins Owners2.68%
Ins Owner Change-0.83%
Market Cap11.13B
Analysts82
Price Target92.62 (20.4%)
Short Float %4.51%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend1.12
Dividend Growth(5Y)10.71%
DP34.27%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.31%
Min EPS beat(2)-9.68%
Max EPS beat(2)1.06%
EPS beat(4)3
Avg EPS beat(4)-1%
Min EPS beat(4)-9.68%
Max EPS beat(4)3.67%
EPS beat(8)7
Avg EPS beat(8)2.96%
EPS beat(12)11
Avg EPS beat(12)9.37%
EPS beat(16)15
Avg EPS beat(16)18.5%
Revenue beat(2)0
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-0.29%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)2.21%
Revenue beat(8)5
Avg Revenue beat(8)1.08%
Revenue beat(12)9
Avg Revenue beat(12)2.9%
Revenue beat(16)12
Avg Revenue beat(16)4.86%
PT rev (1m)1.49%
PT rev (3m)9.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 19.25 | ||
| P/S | 2.68 | ||
| P/FCF | 18.94 | ||
| P/OCF | 11.61 | ||
| P/B | 6.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.85 |
EPS(TTM)3.4
EY4.42%
EPS(NY)4
Fwd EY5.19%
FCF(TTM)4.06
FCFY5.28%
OCF(TTM)6.63
OCFY8.61%
SpS28.69
BVpS11.25
TBVpS-3.16
PEG (NY)8.8
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 31.08% | ||
| ROCE | 5.42% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.13% | ||
| ROICexgc | 4.73% | ||
| OM | 21.77% | ||
| PM (TTM) | 12.19% | ||
| GM | 25.84% | ||
| FCFM | 14.16% |
ROA(3y)4.05%
ROA(5y)3.68%
ROE(3y)36.9%
ROE(5y)32.08%
ROIC(3y)5.07%
ROIC(5y)4.68%
ROICexc(3y)5.14%
ROICexc(5y)4.76%
ROICexgc(3y)6.16%
ROICexgc(5y)5.72%
ROCE(3y)6.74%
ROCE(5y)6.23%
ROICexcg growth 3Y-1.19%
ROICexcg growth 5Y2.52%
ROICexc growth 3Y-0.71%
ROICexc growth 5Y3.33%
OM growth 3Y-1.43%
OM growth 5Y3.41%
PM growth 3Y-3.74%
PM growth 5Y-1.34%
GM growth 3Y-1.44%
GM growth 5Y2.25%
F-Score5
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.92 | ||
| Debt/FCF | 8.22 | ||
| Debt/EBITDA | 3.87 | ||
| Cap/Depr | 115.5% | ||
| Cap/Sales | 8.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.28% | ||
| Profit Quality | 116.18% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 0.85 |
F-Score5
WACC11.36%
ROIC/WACC0.36
Cap/Depr(3y)118.05%
Cap/Depr(5y)107.49%
Cap/Sales(3y)8.38%
Cap/Sales(5y)7.78%
Profit Quality(3y)83.97%
Profit Quality(5y)93.99%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.73%
EPS 3Y5.8%
EPS 5Y14.03%
EPS Q2Q%1.28%
EPS Next Y2.57%
EPS Next 2Y7.31%
EPS Next 3Y8.33%
EPS Next 5YN/A
Revenue 1Y (TTM)1.9%
Revenue growth 3Y5.3%
Revenue growth 5Y5.14%
Sales Q2Q%1.21%
Revenue Next Year2.75%
Revenue Next 2Y3.13%
Revenue Next 3Y3.31%
Revenue Next 5YN/A
EBIT growth 1Y4.51%
EBIT growth 3Y3.79%
EBIT growth 5Y8.73%
EBIT Next Year33.56%
EBIT Next 3Y14.45%
EBIT Next 5YN/A
FCF growth 1Y25.83%
FCF growth 3Y-4.49%
FCF growth 5Y6.76%
OCF growth 1Y13.33%
OCF growth 3Y2.61%
OCF growth 5Y7.13%