SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCI - US8175651046 - Common Stock
78.83 USD
-0.46 (-0.58%)
78.83 USD
0 (0%)
Overall SCI gets a fundamental rating of 5 out of 10. We evaluated SCI against 76 industry peers in the Diversified Consumer Services industry. SCI scores excellent on profitability, but there are concerns on its financial health. SCI is not valued too expensively and it also shows a decent growth rate. 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 92.11% of its industry peers.
The Return On Invested Capital of SCI (4.31%) is better than 60.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCI is below the industry average of 8.97%.
| 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 76.32% of the companies in the same industry.
SCI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.15%, SCI belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
In the last couple of years the Operating Margin of SCI has grown nicely.
SCI has a Gross Margin of 26.44%. This is in the lower half of the industry: SCI underperforms 73.68% of its industry peers.
SCI's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for SCI has been reduced compared to 1 year ago.
SCI has less shares outstanding than it did 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 0.82, we must say that SCI is in the distress zone and has some risk of bankruptcy.
SCI has a Altman-Z score (0.82) which is in line with its industry peers.
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 has a better Debt to FCF ratio (8.13) than 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 Debt to Equity ratio of 3.17. This is in the lower half of the industry: SCI underperforms 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.56
WACC7.66%
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.
Looking at the Current ratio, with a value of 0.56, SCI is doing worse than 82.89% of the companies in the same industry.
A Quick Ratio of 0.52 indicates that SCI may have some problems paying its short term obligations.
The Quick ratio of SCI (0.52) is worse than 82.89% of its industry peers.
| 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.
Measured over the past years, SCI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.79% on average per year.
The Revenue has been growing slightly by 3.41% in the past year.
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
SCI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.08% yearly.
SCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.60% yearly.
EPS Next Y10.27%
EPS Next 2Y10.19%
EPS Next 3Y10.08%
EPS Next 5YN/A
Revenue Next Year3.25%
Revenue Next 2Y3.36%
Revenue Next 3Y3.6%
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
A Price/Earnings ratio of 20.91 indicates a rather expensive valuation of SCI.
SCI's Price/Earnings ratio is a bit cheaper when compared to the industry. SCI is cheaper than 63.16% of the companies in the same industry.
SCI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
With a Price/Forward Earnings ratio of 18.39, SCI is valued on the expensive side.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, SCI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 18.39 |
4.2 Price Multiples
SCI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SCI is valued a bit cheaper than the industry average as 71.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.86 | ||
| EV/EBITDA | 11.88 |
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)2.04
PEG (5Y)1.52
EPS Next 2Y10.19%
EPS Next 3Y10.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.72%, 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 0.39. SCI pays more dividend than 92.11% of the companies in the same industry.
SCI's Dividend Yield is comparable with the S&P500 average which is at 1.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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
33.57% of the earnings are spent on dividend by SCI. This is a low number and 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%
78.83
-0.46 (-0.58%)
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 Cap11.05B
Revenue(TTM)4.29B
Net Income(TTM)534.57M
Analysts84
Price Target96.21 (22.05%)
Short Float %2.49%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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)2.29%
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)-0.02%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 18.39 | ||
| P/S | 2.58 | ||
| P/FCF | 17.86 | ||
| P/OCF | 11.12 | ||
| P/B | 7.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.88 |
EPS(TTM)3.77
EY4.78%
EPS(NY)4.29
Fwd EY5.44%
FCF(TTM)4.41
FCFY5.6%
OCF(TTM)7.09
OCFY8.99%
SpS30.61
BVpS11.18
TBVpS-4.14
PEG (NY)2.04
PEG (5Y)1.52
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 | 0.82 |
F-Score8
WACC7.66%
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 Year3.25%
Revenue Next 2Y3.36%
Revenue Next 3Y3.6%
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 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 10.27% in the next year.