SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
NYSE:SCI - New York Stock Exchange, Inc. - US8175651046 - Common Stock - Currency: USD
Overall SCI gets a fundamental rating of 4 out of 10. We evaluated SCI against 71 industry peers in the Diversified Consumer Services industry. SCI has a medium profitability rating, but doesn't score so well on its financial health evaluation. SCI has a valuation in line with the averages, but it does not seem to be growing. Finally SCI also has an excellent dividend rating.
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.
Of the past 5 years SCI 4 years were profitable.
Of the past 5 years SCI 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.91%, SCI is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
SCI has a better Return On Equity (31.08%) than 92.19% of its industry peers.
SCI has a Return On Invested Capital of 4.09%. This is in the better half of the industry: SCI outperforms 60.94% of its industry peers.
SCI had an Average Return On Invested Capital over the past 3 years of 5.07%. This is significantly below the industry average of 12.02%.
| 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
The Profit Margin of SCI (12.19%) is better than 79.69% of its industry peers.
In the last couple of years the Profit Margin of SCI has remained more or less at the same level.
SCI's Operating Margin of 21.77% is amongst the best of the industry. SCI outperforms 90.63% of its industry peers.
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: 76.56% of the companies in the same industry are doing better.
SCI's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SCI is destroying value.
There is no outstanding debt for SCI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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.
SCI has a Altman-Z score of 0.86. This is comparable to the rest of the industry: SCI outperforms 51.56% 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.
SCI's Debt to FCF ratio of 8.22 is fine compared to the rest of the industry. SCI outperforms 60.94% of its industry peers.
A Debt/Equity ratio of 2.92 is on the high side and indicates that SCI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.92, SCI is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.92 | ||
| Debt/FCF | 8.22 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.41
WACC9.94%
2.3 Liquidity
SCI has a Current Ratio of 0.52. 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's Current ratio of 0.52 is on the low side compared to the rest of the industry. SCI is outperformed by 84.38% of its industry peers.
SCI has a Quick Ratio of 0.52. 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 0.48, SCI is not doing good in the industry: 82.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.73% over the past year.
The Earnings Per Share has been growing by 13.79% on average over the past years. This is quite good.
EPS 1Y (TTM)1.73%
EPS 3Y-8.25%
EPS 5Y13.79%
EPS Q2Q%13.98%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.53%
3.2 Future
Based on estimates for the next years, SCI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.39% on average per year.
SCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.63% yearly.
EPS Next Y9.87%
EPS Next 2Y10.09%
EPS Next 3Y11.39%
EPS Next 5YN/A
Revenue Next Year2.73%
Revenue Next 2Y3.09%
Revenue Next 3Y3.63%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.35 indicates a rather expensive valuation of SCI.
62.50% of the companies in the same industry are more expensive than SCI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. SCI is valued slightly cheaper when compared to this.
SCI is valuated rather expensively with a Price/Forward Earnings ratio of 20.35.
Based on the Price/Forward Earnings ratio, SCI is valued a bit cheaper than 67.19% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SCI to the average of the S&P500 Index (22.68), we can say SCI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 20.35 |
4.2 Price Multiples
62.50% 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 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.43 | ||
| EV/EBITDA | 13.08 |
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.
The decent profitability rating of SCI may justify a higher PE ratio.
PEG (NY)2.26
PEG (5Y)1.62
EPS Next 2Y10.09%
EPS Next 3Y11.39%
5. Dividend
5.1 Amount
SCI has a Yearly Dividend Yield of 1.63%.
Compared to an average industry Dividend Yield of 4.39, SCI pays a better dividend. On top of this SCI pays more dividend than 87.50% 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 | 1.63% |
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.
SCI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP34.27%
EPS Next 2Y10.09%
EPS Next 3Y11.39%
78.91
+0.26 (+0.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners95.44%
Inst Owner Change-0.79%
Ins Owners2.66%
Ins Owner Change-0.34%
Market Cap11.41B
Analysts82
Price Target89.81 (13.81%)
Short Float %5.16%
Short Ratio6.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)-2.48%
PT rev (3m)6.3%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-0.76%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 20.35 | ||
| P/S | 2.75 | ||
| P/FCF | 19.43 | ||
| P/OCF | 11.91 | ||
| P/B | 7.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.08 |
EPS(TTM)3.53
EY4.47%
EPS(NY)3.88
Fwd EY4.91%
FCF(TTM)4.06
FCFY5.15%
OCF(TTM)6.63
OCFY8.4%
SpS28.69
BVpS11.25
TBVpS-3.16
PEG (NY)2.26
PEG (5Y)1.62
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 | 0.86 |
F-Score5
WACC9.94%
ROIC/WACC0.41
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 3Y-8.25%
EPS 5Y13.79%
EPS Q2Q%13.98%
EPS Next Y9.87%
EPS Next 2Y10.09%
EPS Next 3Y11.39%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.53%
Revenue Next Year2.73%
Revenue Next 2Y3.09%
Revenue Next 3Y3.63%
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%