SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCI - US8175651046 - Common Stock
82.97 USD
+0.87 (+1.06%)
83.93 USD
+0.96 (+1.16%)
We assign a fundamental rating of 5 out of 10 to SCI. SCI was compared to 76 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 correct valuation and a medium growth rate. Finally SCI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year SCI was profitable.
- SCI had a positive operating cash flow in the past year.
- Each year in the past 5 years SCI has 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.
- The Return On Equity of SCI (34.12%) is better than 89.47% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.31%, SCI is in the better half of the industry, outperforming 60.53% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SCI is significantly below the industry average of 10.30%.
| 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
- With a decent Profit Margin value of 12.46%, SCI is doing good in the industry, outperforming 73.68% of the companies in the same industry.
- SCI's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 23.15%, SCI belongs to the top of the industry, outperforming 88.16% of the companies in the same industry.
- SCI's Operating Margin has improved in the last couple of years.
- SCI's Gross Margin of 26.44% is on the low side compared to the rest of the industry. SCI is outperformed by 69.74% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCI is destroying value.
- SCI has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SCI has less shares outstanding
- SCI has a better debt/assets ratio than last year.
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.
- SCI has a Altman-Z score of 0.84. This is comparable to the rest of the industry: SCI outperforms 48.68% of its industry peers.
- SCI has a debt to FCF ratio of 8.13. This is a slightly negative value and a sign of low solvency as SCI would need 8.13 years to pay back of all of its debts.
- The Debt to FCF ratio of SCI (8.13) is better than 68.42% 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 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.57
WACC7.56%
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.
- With a Current ratio value of 0.56, SCI is not doing good in the industry: 80.26% of the companies in the same industry are doing better.
- A Quick Ratio of 0.52 indicates that SCI may have some problems paying its short term obligations.
- SCI has a Quick ratio of 0.52. This is amonst the worse of the industry: SCI underperforms 80.26% of its industry peers.
| 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.
- SCI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.79% yearly.
- Looking at the last year, SCI shows a small growth in Revenue. The Revenue has grown by 3.41% in the last year.
- 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
- Based on estimates for the next years, SCI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.08% on average per year.
- The Revenue is expected to grow by 3.62% on average over the next years.
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
- 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 22.01, the valuation of SCI can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as SCI.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, SCI is valued at the same level.
- The Price/Forward Earnings ratio is 19.36, which indicates a rather expensive current valuation of SCI.
- SCI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCI is cheaper than 61.84% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. SCI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 19.36 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SCI.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCI indicates a somewhat cheap valuation: SCI is cheaper than 72.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.79 | ||
| EV/EBITDA | 12.31 |
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)2.14
PEG (5Y)1.6
EPS Next 2Y10.19%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.66%, 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 0.35. SCI pays more dividend than 90.79% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, SCI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
- On average, the dividend of SCI grows each year by 10.53%, which is quite nice.
- SCI has been paying a dividend for at least 10 years, so it has 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 2Y10.19%
EPS Next 3Y10.08%
82.97
+0.87 (+1.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners90.73%
Inst Owner Change-0.13%
Ins Owners2.75%
Ins Owner Change-0.29%
Market Cap11.63B
Revenue(TTM)4.29B
Net Income(TTM)534.57M
Analysts84
Price Target96.21 (15.96%)
Short Float %2.6%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend1.2
Dividend Growth(5Y)10.53%
DP33.57%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
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%
PT rev (3m)4.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)0%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 19.36 | ||
| P/S | 2.71 | ||
| P/FCF | 18.79 | ||
| P/OCF | 11.7 | ||
| P/B | 7.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.31 |
EPS(TTM)3.77
EY4.54%
EPS(NY)4.29
Fwd EY5.17%
FCF(TTM)4.41
FCFY5.32%
OCF(TTM)7.09
OCFY8.55%
SpS30.61
BVpS11.18
TBVpS-4.14
PEG (NY)2.14
PEG (5Y)1.6
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 | 0.84 |
F-Score8
WACC7.56%
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 Y10.27%
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.
Can you provide the valuation status for SERVICE CORP INTERNATIONAL?
ChartMill assigns a valuation rating of 4 / 10 to SERVICE CORP INTERNATIONAL (SCI). This can be considered as Fairly Valued.
How profitable is SERVICE CORP INTERNATIONAL (SCI) stock?
SERVICE CORP INTERNATIONAL (SCI) has a profitability rating of 7 / 10.
What is the expected EPS growth for SERVICE CORP INTERNATIONAL (SCI) stock?
The Earnings per Share (EPS) of SERVICE CORP INTERNATIONAL (SCI) is expected to grow by 10.27% in the next year.
How sustainable is the dividend of SERVICE CORP INTERNATIONAL (SCI) stock?
The dividend rating of SERVICE CORP INTERNATIONAL (SCI) is 7 / 10 and the dividend payout ratio is 33.57%.