SERVICE CORP INTERNATIONAL (SCI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:SCI • US8175651046
80.43 USD
+0.63 (+0.79%)
At close: Jan 30, 2026
80.43 USD
0 (0%)
After Hours: 1/30/2026, 8:18:16 PM
SCI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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. Finally SCI also has an excellent dividend rating.
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.
- SCI had positive earnings in each of the past 5 years.
- Each year in the past 5 years SCI had a positive operating cash flow.
1.2 Ratios
- SCI has a Return On Assets (2.91%) which is comparable to the rest of the industry.
- With an excellent Return On Equity value of 34.12%, SCI belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
- SCI has a better Return On Invested Capital (4.31%) than 60.53% of its industry peers.
- SCI had an Average Return On Invested Capital over the past 3 years of 4.60%. This is significantly below the industry average of 10.17%.
| 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
- SCI has a better Profit Margin (12.46%) than 73.68% 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 23.15%, SCI belongs to the best 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 has a worse Gross Margin (26.44%) than 69.74% 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.
- 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 been reduced compared to a year ago.
2.2 Solvency
- SCI has an Altman-Z score of 0.83. 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 0.83 is in line compared to the rest of the industry. SCI outperforms 48.68% of 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.
- With a decent Debt to FCF ratio value of 8.13, SCI is doing good in the industry, outperforming 68.42% of the companies in the same industry.
- A Debt/Equity ratio of 3.17 is on the high side and indicates that SCI has dependencies on debt financing.
- SCI's Debt to Equity ratio of 3.17 is on the low side compared to the rest of the industry. SCI is outperformed by 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.58
WACC7.44%
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
- 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.
- The Earnings Per Share has been growing by 13.79% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 3.41% in the past year.
- The Revenue has been growing slightly by 5.32% on average over the past years.
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
- The Earnings Per Share is expected to grow by 10.16% on average over the next years. This is quite good.
- SCI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.58% yearly.
EPS Next Y10.2%
EPS Next 2Y10.34%
EPS Next 3Y10.16%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y3.39%
Revenue Next 3Y3.58%
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
- Based on the Price/Earnings ratio of 21.33, the valuation of SCI can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of SCI is on the same level as its industry peers.
- SCI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
- With a Price/Forward Earnings ratio of 18.72, SCI is valued on the expensive side.
- 63.16% of the companies in the same industry are more expensive than SCI, based on the Price/Forward Earnings ratio.
- SCI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.33 | ||
| Fwd PE | 18.72 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCI is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, SCI is valued a bit cheaper than the industry average as 72.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.22 | ||
| EV/EBITDA | 12.04 |
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)2.09
PEG (5Y)1.55
EPS Next 2Y10.34%
EPS Next 3Y10.16%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.70%, SCI has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.37, SCI pays a better dividend. On top of this SCI pays more dividend than 90.79% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, SCI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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
- SCI pays out 33.57% 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.
DP33.57%
EPS Next 2Y10.34%
EPS Next 3Y10.16%
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 10.2% 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%.