SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
USA - NYSE:SCI - US8175651046 - Common Stock
80.09 USD
-0.82 (-1.01%)
80.09 USD
0 (0%)
SCI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 74 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 has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years SCI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SCI (2.98%) is better than 60.81% of its industry peers.
Looking at the Return On Equity, with a value of 34.29%, SCI belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.28%, SCI is doing good in the industry, outperforming 63.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SCI is significantly below the industry average of 9.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 34.29% | ||
| ROIC | 4.28% |
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 12.60%. This is in the better half of the industry: SCI outperforms 77.03% of its industry peers.
In the last couple of years the Profit Margin of SCI has grown nicely.
With an excellent Operating Margin value of 22.81%, SCI belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
In the last couple of years the Operating Margin of SCI has grown nicely.
SCI's Gross Margin of 26.41% is on the low side compared to the rest of the industry. SCI is outperformed by 71.62% of its industry peers.
In the last couple of years the Gross Margin of SCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.81% | ||
| PM (TTM) | 12.6% | ||
| GM | 26.41% |
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.
SCI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that SCI is in the distress zone and has some risk of bankruptcy.
SCI's Altman-Z score of 0.84 is in line compared to the rest of the industry. SCI outperforms 45.95% of its industry peers.
The Debt to FCF ratio of SCI is 7.98, which is on the high side as it means it would take SCI, 7.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.98, SCI is in the better half of the industry, outperforming 64.86% of the companies in the same industry.
SCI has a Debt/Equity ratio of 3.19. This is a high value indicating a heavy dependency on external financing.
SCI's Debt to Equity ratio of 3.19 is on the low side compared to the rest of the industry. SCI is outperformed by 75.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.19 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.56
WACC7.61%
2.3 Liquidity
SCI has a Current Ratio of 0.61. 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 0.61, SCI is not doing good in the industry: 77.03% of the companies in the same industry are doing better.
A Quick Ratio of 0.56 indicates that SCI may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, SCI is not doing good in the industry: 78.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
SCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.85%, 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 2.65% in the past year.
The Revenue has been growing slightly by 5.32% on average over the past years.
EPS 1Y (TTM)8.85%
EPS 3Y-8.25%
EPS 5Y13.79%
EPS Q2Q%11.39%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y0.35%
Revenue growth 5Y5.32%
Sales Q2Q%3.04%
3.2 Future
The Earnings Per Share is expected to grow by 10.06% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.66% on average over the next years.
EPS Next Y9.53%
EPS Next 2Y9.88%
EPS Next 3Y10.06%
EPS Next 5YN/A
Revenue Next Year3.01%
Revenue Next 2Y3.15%
Revenue Next 3Y3.66%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SCI is valuated rather expensively with a Price/Earnings ratio of 21.70.
Compared to the rest of the industry, the Price/Earnings ratio of SCI indicates a somewhat cheap valuation: SCI is cheaper than 68.92% of the companies listed in the same industry.
SCI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 18.79, the valuation of SCI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SCI is valued a bit cheaper than the industry average as 67.57% of the companies are valued more expensively.
SCI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.7 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
SCI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCI is cheaper than 62.16% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCI indicates a somewhat cheap valuation: SCI is cheaper than 77.03% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.8 | ||
| EV/EBITDA | 12.28 |
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)2.28
PEG (5Y)1.57
EPS Next 2Y9.88%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
SCI has a Yearly Dividend Yield of 1.58%.
SCI's Dividend Yield is rather good when compared to the industry average which is at 3.04. SCI pays more dividend than 90.54% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, SCI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
On average, the dividend of SCI grows each year by 10.53%, 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)10.53%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
33.29% 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.
DP33.29%
EPS Next 2Y9.88%
EPS Next 3Y10.06%
80.09
-0.82 (-1.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners93.54%
Inst Owner Change-3.41%
Ins Owners2.77%
Ins Owner Change0.04%
Market Cap11.23B
Analysts84
Price Target92.35 (15.31%)
Short Float %3.56%
Short Ratio4.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend1.2
Dividend Growth(5Y)10.53%
DP33.29%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.59%
Min EPS beat(2)2.5%
Max EPS beat(2)4.68%
EPS beat(4)4
Avg EPS beat(4)2.1%
Min EPS beat(4)0.14%
Max EPS beat(4)4.68%
EPS beat(8)7
Avg EPS beat(8)1.91%
EPS beat(12)11
Avg EPS beat(12)5.24%
EPS beat(16)15
Avg EPS beat(16)13.22%
Revenue beat(2)2
Avg Revenue beat(2)0.31%
Min Revenue beat(2)0.3%
Max Revenue beat(2)0.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)0.32%
Revenue beat(8)5
Avg Revenue beat(8)0.53%
Revenue beat(12)8
Avg Revenue beat(12)1.46%
Revenue beat(16)12
Avg Revenue beat(16)3.25%
PT rev (1m)0.93%
PT rev (3m)2.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)1.16%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.7 | ||
| Fwd PE | 18.79 | ||
| P/S | 2.64 | ||
| P/FCF | 17.8 | ||
| P/OCF | 11.17 | ||
| P/B | 7.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.28 |
EPS(TTM)3.69
EY4.61%
EPS(NY)4.26
Fwd EY5.32%
FCF(TTM)4.5
FCFY5.62%
OCF(TTM)7.17
OCFY8.95%
SpS30.28
BVpS11.12
TBVpS-3.82
PEG (NY)2.28
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 34.29% | ||
| ROCE | 5.61% | ||
| ROIC | 4.28% | ||
| ROICexc | 4.35% | ||
| ROICexgc | 4.96% | ||
| OM | 22.81% | ||
| PM (TTM) | 12.6% | ||
| GM | 26.41% | ||
| FCFM | 14.86% |
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%
ROICexcg growth 3Y-10.1%
ROICexcg 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-Score7
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.19 | ||
| Debt/FCF | 7.98 | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 111.43% | ||
| Cap/Sales | 8.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.08% | ||
| Profit Quality | 117.97% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 0.84 |
F-Score7
WACC7.61%
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)8.85%
EPS 3Y-8.25%
EPS 5Y13.79%
EPS Q2Q%11.39%
EPS Next Y9.53%
EPS Next 2Y9.88%
EPS Next 3Y10.06%
EPS Next 5YN/A
Revenue 1Y (TTM)2.65%
Revenue growth 3Y0.35%
Revenue growth 5Y5.32%
Sales Q2Q%3.04%
Revenue Next Year3.01%
Revenue Next 2Y3.15%
Revenue Next 3Y3.66%
Revenue Next 5YN/A
EBIT growth 1Y5.87%
EBIT growth 3Y-6.53%
EBIT growth 5Y8.47%
EBIT Next Year40.96%
EBIT Next 3Y15.44%
EBIT Next 5YN/A
FCF growth 1Y95.92%
FCF growth 3Y-3.42%
FCF growth 5Y7.41%
OCF growth 1Y40.35%
OCF growth 3Y0.87%
OCF growth 5Y8.49%