Service International (SCI) AI Stock Analysis

• Market Cap: $11.92B
• Dividend Yield: 1.66%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.45
• Revenue Growth: 3.41%
• EPS Growth: 7.94%
• Country: US
• Employees: 25,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 1.14
• Shares Outstanding: 139,223,660
• 10 Day Avg. Volume: 989,162
• 30 Day Avg. Volume: 1,111,120
• PEG Ratio: 2.79
• Price to Book (P/B): 6.74
• Price to Sales (P/S): 2.56
• P/FCF Ratio: 19.92
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 3.92
• Enterprise Value/Gross Profit: 14.82
• Enterprise Value/Ebitda: 13.48
• 1Y Price Target: $100.67
• Price Target Upside: 17.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 4.21
• Revenue Forecast (FY): $4.44B

• Rating: 65 Neutral
• Price Target: $87.00 ▲(1.58% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by solid operating performance and cash generation but held back by balance-sheet leverage and some margin/free-cash-flow pressure. Earnings-call guidance and liquidity/capital-return priorities are constructive, while technical signals are broadly neutral and valuation appears mid-range.

Positive Factors

Stable cash generation

Consistent operating cash flow and positive free cash flow provide durable internal funding for maintenance capex, cemetery development, dividends and buybacks. Reliable cash generation supports strategic investments and cushions cyclical revenue swings over the next 2–6 months.

Preneed sales momentum

Accelerating preneed production builds a long-duration backlog that stabilizes future revenue and cash receipts. Higher preneed volumes improve predictability of cemetery and funeral cash flows, enabling planning for cemetery development and enhancing lifetime customer economics.

Liquidity and disciplined capital returns

A larger committed credit facility and about $1.7B in liquidity reduce near-term refinancing risk and fund strategic initiatives. Combined with consistent buybacks/dividends, this reflects disciplined capital allocation balancing shareholder returns and investments in higher-return cemetery development.

Negative Factors

High leverage

Elevated indebtedness leaves the balance sheet sensitive to interest-rate and refinancing cycles and limits strategic flexibility. Covenants and leverage targets constrain acquisitions, capex pacing and distribution policy, increasing downside risk if operating cash flow weakens.

SCI Direct margin pressure

Structural product mix shifts that replace higher-margin merchandise revenue with insurance-funded sales raise reported costs and reduce gross margins. This persistent mix change can depress segment profitability and lower cash conversion unless offset by pricing or cost realignment.

Weak FCF conversion

Subpar free cash flow conversion means reported earnings are not fully translating to cash available for debt reduction or additional investment. This constrains deleveraging and makes the company more reliant on financing ortrade-offs among capex, M&A and shareholder returns.

Service International Business Overview & Revenue Model

Company Description

Service Corporation International provides deathcare products and services in the United States and Canada. The company operates through Funeral and Cemetery segments. Its funeral service and cemetery operations comprise funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other businesses. The company also provides professional services related to funerals and cremations, including the use of funeral facilities and motor vehicles; arranging and directing services; and removal, preparation, embalming, cremation, memorialization, and travel protection, as well as catering services. In addition, it offers funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, online and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise. Further, the company's cemeteries provide cemetery property interment rights, such as developed lots, lawn crypts, mausoleum spaces, niches, and other cremation memorialization and interment options; and sells cemetery merchandise and services, including memorial markers and bases, outer burial containers, flowers and floral placements, graveside services, merchandise installations, and interments, as well as offers preneed cemetery merchandise and services. Service Corporation International offers its products and services under the Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, Funeraria del Angel, Making Everlasting Memories, Neptune Society, and Trident Society brands. As of December 31, 2021, it owned and operated 1,471 funeral service locations; and 488 cemeteries, including 299 funeral service/cemetery combination locations covering 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. The company was incorporated in 1962 and is headquartered in Houston, Texas.

How the Company Makes Money

SCI generates revenue through several key streams. Primarily, the company earns money by charging clients for its logistics services, which include freight forwarding and customs brokerage fees. Additionally, income is generated from warehousing services, where clients pay for storage and inventory management. SCI also engages in strategic partnerships with shipping lines and carriers, allowing it to negotiate favorable rates and pass on savings to customers. These partnerships not only enhance service offerings but also provide additional revenue opportunities through collaborative ventures. Furthermore, the company leverages technology to optimize logistics processes, reducing operational costs and increasing profit margins.

Service International Financial Statement Overview

Summary

Income statement strength (re-accelerating 2025 revenue growth and solid net margins) and steady operating cash flow are offset by a constrained balance sheet with elevated leverage and some recent margin/free-cash-flow pressure.

Income Statement

Revenue has re-accelerated in 2025 (annual revenue growth of ~43% vs ~2% in 2024), and profitability remains solid with a strong net margin (~21% in 2025). That said, gross margin has trended down from 2021 levels, and EBITDA margin compressed meaningfully in 2025 versus 2024, suggesting higher costs or mix/one-time impacts despite the strong top-line year.

Balance Sheet

Leverage is the main constraint: total debt rose to ~$5.1B in 2025 while equity is ~1.6B, and prior years show consistently high debt relative to equity (debt-to-equity roughly ~2–3x in 2020–2024). Total assets have grown, but equity has been relatively flat to down over time, leaving less balance-sheet flexibility and higher sensitivity to refinancing/interest-rate conditions.

Cash Flow

Cash generation is steady: operating cash flow has been consistently strong (~$0.8–$0.95B across 2020–2025) and free cash flow remains positive (~$0.55B in 2025). However, free cash flow growth turned negative in 2025, and free cash flow covers only ~59% of net income (similar to 2023–2024), indicating earnings are not fully translating into incremental free cash after cash taxes, working capital, and capital spending.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.31B	4.19B	4.10B	4.11B	4.14B
Gross Profit	1.14B	1.09B	1.09B	1.15B	1.32B
EBITDA	1.31B	1.26B	1.26B	1.27B	1.44B
Net Income	542.61M	518.65M	537.32M	565.34M	802.94M
Balance Sheet
Total Assets	18.65B	17.38B	16.36B	15.07B	15.69B
Cash, Cash Equivalents and Short-Term Investments	243.58M	218.77M	221.56M	191.94M	268.63M
Total Debt	5.14B	4.92B	4.80B	4.43B	4.06B
Total Liabilities	17.02B	15.70B	14.81B	13.39B	13.78B
Stockholders Equity	1.64B	1.68B	1.54B	1.67B	1.91B
Cash Flow
Free Cash Flow	554.25M	555.80M	507.25M	456.02M	616.95M
Operating Cash Flow	942.80M	944.91M	869.04M	825.73M	920.61M
Investing Cash Flow	-548.28M	-620.95M	-469.39M	-447.88M	-414.93M
Financing Cash Flow	-374.73M	-319.64M	-381.14M	-448.00M	-465.62M

Service International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCI, the sentiment is Positive. The current price of 85.65 is above the 20-day moving average (MA) of 82.03, above the 50-day MA of 80.62, and above the 200-day MA of 79.52, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 64.74 is Neutral, neither overbought nor oversold. The STOCH value of 95.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCI.

Service International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTDR	70 Outperform	$4.76B	19.70	106.44%	―	11.88%	18.08%
SCI	65 Neutral	$11.92B	22.14	32.72%	1.66%	3.41%	7.94%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CSV	61 Neutral	$716.84M	14.17	21.93%	1.06%	0.99%	37.55%

Service International Corporate Events

Service International Declares Quarterly Cash Dividend for Shareholders

On February 19, 2026, Service Corporation International said its board had declared a quarterly cash dividend of $0.34 per share of common stock, reinforcing its ongoing capital return program to shareholders. The dividend is scheduled to be paid on March 31, 2026, to investors of record as of March 13, 2026, underscoring the company’s confidence in its financial position while noting that future payouts remain subject to quarterly board review and potential constraints such as financing terms, tax changes or shifts in cash needs.

By maintaining a regular quarterly dividend, SCI signals operational stability and cash-generation strength in the deathcare sector, which may appeal to income-focused investors. However, management cautioned that the declaration of future dividends will depend on factors including financial performance, available liquidity and board judgment on whether continued distributions are in the best interests of the company and its shareholders.

The most recent analyst rating on (SCI) stock is a Buy with a $96.00 price target. To see the full list of analyst forecasts on Service International stock, see the SCI Stock Forecast page.

Service International Secures New Credit Agreement with JPMorgan

On November 20, 2025, Service Corporation International entered into a new senior unsecured credit agreement with JPMorgan Chase Bank and other financial institutions. This agreement includes a $750 million term loan facility and a $1.75 billion revolving credit facility, both maturing in November 2030. The credit agreement imposes various covenants and requires the company to maintain a specific leverage ratio, impacting its financial flexibility and operational strategies.

The most recent analyst rating on (SCI) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on Service International stock, see the SCI Stock Forecast page.