Service International (SCI) AI Stock Analysis

• Market Cap: $11.30B
• Dividend Yield: 1.55%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.63
• Revenue Growth: 2.11%
• EPS Growth: 0.05%
• Country: US
• Employees: 17,685
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Personal Products & Services
• EPS (TTM): 3.53
• Shares Outstanding: 144,095,780
• 10 Day Avg. Volume: 1,189,188
• 30 Day Avg. Volume: 1,250,215
• PEG Ratio: 439.98
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.69
• Price to Cash Flow (P/CF): 10.60
• P/FCF Ratio: 14.70
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 15.01
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $95.00
• Price Target Upside: 21.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Service International's overall stock score reflects a balanced view of its solid financial performance, stable technical indicators, and fair valuation. The company's positive earnings call and recent dividend increase further support its financial health and shareholder value. Key strengths include strong cash flow and successful capital investments, while challenges such as flat funeral volumes and competitive pressures on margins are noted.

Positive Factors

Cemetery Sales

Pre-need Cemetery sales showed notable growth, outperforming expectations despite challenging comparisons.

Insurance Contract

The new insurance contract provides offsets given higher commission fees on higher production.

Rose Hills Recovery

Visitations at Rose Hills grew much faster than average in December, pointing to a recovery after a slowdown.

Negative Factors

Foot Traffic

Foot traffic declined in the other big SCI's states: -5% in Texas, -11% in Arizona, and -8% in Illinois.

Funeral Volumes

Funeral volumes remain volatile and were worse than expected, partly due to normalization after a period of excess deaths.

Visitations

The strong March was not enough to offset weak Jan-Feb, and for the full quarter Q1, visits decreased -5% y/y.

Service International Business Overview & Revenue Model

Company Description

Service Corporation International (SCI) is the largest provider of funeral, cremation, and cemetery services in North America. Headquartered in Houston, Texas, SCI operates a network of funeral homes and cemeteries, offering comprehensive end-of-life services. The company is committed to providing compassionate support and guidance to families during their most difficult times, with a strong focus on customer service and customized memorialization options.

How the Company Makes Money

Service Corporation International generates revenue through several key streams. Primarily, the company earns money by providing funeral services, which include traditional funerals, cremations, and memorial services. Additionally, SCI generates income from the sale of cemetery property like burial plots, mausoleums, and niches for cremation urns. The company also offers pre-need services, allowing customers to arrange and pay for services in advance, which provides a steady stream of deferred revenue. Moreover, SCI benefits from its scale and extensive network, leading to operational efficiencies and cost-saving opportunities. Partnerships with local and national organizations can also enhance service offerings and expand market reach, further contributing to its revenue.

Service International Financial Statement Overview

Summary

Service International displays a solid financial position with steady revenue growth and strong cash flow generation, which supports operational sustainability and potential for future expansion. While profitability margins have seen slight pressure, the balance sheet remains healthy with manageable leverage levels.

Income Statement

Service International has demonstrated solid revenue growth with a TTM (Trailing-Twelve-Months) revenue increase compared to the previous year. The gross profit margin is strong, reflecting efficient cost management. However, there is a slight decline in net profit margin and EBIT margin, indicating increased expenses or competitive pressures. Overall, profitability remains stable with a robust EBITDA margin.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. Stockholders' equity has improved, enhancing the equity ratio and demonstrating increased asset backing. However, the return on equity has seen a decline, suggesting reduced efficiency in generating profits from equity.

Cash Flow

Service International has shown strong free cash flow growth, boosting its financial flexibility. The operating cash flow to net income ratio is healthy, indicating effective cash generation relative to net earnings. The free cash flow to net income ratio is also strong, reflecting good conversion of profits into cash flow despite capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.19B	4.10B	4.11B	4.14B	3.51B
	Gross Profit
1.09B	1.09B	1.15B	1.30B	976.83M
	EBIT
927.68M	944.25M	927.32M	1.19B	842.77M
	EBITDA
1.26B	1.26B	1.27B	1.44B	1.09B
	Net Income Common Stockholders
518.65M	537.32M	565.34M	802.94M	515.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
218.77M	221.56M	191.94M	268.63M	230.86M
	Total Assets
17.38B	16.36B	15.07B	15.69B	14.52B
	Total Debt
4.92B	4.80B	4.34B	3.97B	3.83B
	Net Debt
4.70B	4.58B	4.15B	3.70B	3.60B
	Total Liabilities
15.70B	14.81B	13.39B	13.78B	12.76B
	Stockholders Equity
1.68B	1.54B	1.67B	1.91B	1.75B
Cash Flow		Free Cash Flow
555.80M	507.25M	456.02M	616.95M	582.14M
	Operating Cash Flow
944.91M	869.04M	825.73M	920.61M	804.35M
	Investing Cash Flow
-620.95M	-469.39M	-447.88M	-414.93M	-318.37M
	Financing Cash Flow
-319.64M	-381.14M	-448.00M	-465.62M	-492.78M

Service International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 78.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCI, the sentiment is Neutral. The current price of 78.42 is above the 20-day moving average (MA) of 78.14, below the 50-day MA of 78.86, and below the 200-day MA of 78.53, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 64.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SCI.

Service International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCI	75 Outperform	$11.30B	22.19	32.22%	1.55%	2.11%	0.05%
EHC	70 Outperform	$11.45B	23.42	25.35%	0.56%	11.21%	30.49%
PROV	69 Neutral	$97.72M	16.18	4.82%	3.82%	7.55%	-20.61%
CSV	69 Neutral	$620.59M	18.79	17.04%	1.14%	6.17%	-2.98%
USPH	65 Neutral	$1.07B	38.32	5.75%	2.51%	11.00%	37.38%
Sector *	60 Neutral	$6.85B	11.71	3.15%	4.16%	2.38%	-21.88%
MATW	49 Neutral	$636.10M	―	-13.19%	4.77%	-7.12%	-284.19%

Service International Corporate Events

Service International Increases Quarterly Cash Dividend

On February 20, 2025, Service Corporation International announced a 6.7% increase in its quarterly cash dividend, raising it from thirty to thirty-two cents per share. This decision, payable on March 31, 2025, reflects the company’s commitment to returning value to shareholders while maintaining financial performance reviews each quarter, indicating potential positive impacts on its financial stability and shareholder relations.