Service Corporation International (SCI)
NYSE:SCI
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Service International
(NYSE:SCI)
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Rating:61Neutral
Price Target:
$83.00
▲(0.02% Upside)
Action:Reiterated
Date:05/09/26
The score is driven mainly by solid profitability and cash generation, but capped by high leverage and weak technical momentum (below major moving averages with a negative MACD). Reasonable valuation and reaffirmed full-year guidance with strong cemetery/preneed trends help offset near-term risk from declining funeral volumes and margin pressure.
Positive Factors
Strong operating cash generation
Operating cash flow consistently exceeds reported earnings (TTM ~1.22x) and free cash flow is positive. Durable cash generation funds capex, dividends and buybacks, supports the revolver drawdown flexibility, and reduces near‑term refinancing risk over the next several quarters.
Negative Factors
High financial leverage
Elevated leverage (debt/equity ~3.3; net debt/EBITDA near target upper band) limits financial flexibility, increases interest‑rate and refinancing sensitivity, and amplifies downside risk if operating cash flow or trust returns deteriorate in the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash generation
Operating cash flow consistently exceeds reported earnings (TTM ~1.22x) and free cash flow is positive. Durable cash generation funds capex, dividends and buybacks, supports the revolver drawdown flexibility, and reduces near‑term refinancing risk over the next several quarters.
Read all positive factors
Service International (SCI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.89B
Dividend Yield1.66%
Average Volume (3M)1.26M
Price to Earnings (P/E)12.7
Beta (1Y)0.36
Revenue Growth2.76%
EPS Growth4.18%
CountryUS
Employees25,000
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)4.48
Shares Outstanding138,147,490
10 Day Avg. Volume1,271,059
30 Day Avg. Volume1,258,280
Financial Highlights & Ratios
PEG Ratio2.79
Price to Book (P/B)6.74
Price to Sales (P/S)2.56
P/FCF Ratio19.92
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue3.62
Enterprise Value/Gross Profit13.80
Enterprise Value/Ebitda12.59
Forecast
1Y Price Target
$97.00Price Target Upside16.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)4.13
Revenue Forecast (FY)$4.42B
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,...
How the Company Makes Money
SCI generates revenue through the sale of funeral and cemetery-related services and products, including funeral arrangements, burial plots, crypts, urns, and caskets. Additional earnings come from pre-need sales, wherein customers purchase funeral...
Service International Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presented a resilient operational and financial picture driven by strong cemetery performance, robust preneed sales, solid cash flow, disciplined capital returns and a healthy balance sheet. These positives were tempered by a significant mid-single-digit decline in funeral volumes that materially reduced funeral revenues and gross profit in the quarter and persisted into April, causing near-term uncertainty and a wider earnings range. Management emphasized cost control, strategic initiatives (seminars, cremation/cemetery rollouts, insurance product integration) and confidence in a back-half recovery, and reaffirmed full-year guidance.Positive Updates
Adjusted EPS Slightly Improved
Adjusted EPS of $0.97 vs. $0.96 prior year (+~1¢), with management noting underlying strength and that flat funeral volumes would have implied EPS of ~$1.12 (roughly 17% growth).
Negative Updates
Decline in Funeral Volumes
Core funeral services performed decreased 6.6% in the quarter; total comparable funeral revenues down $17M (~<3%) and comparable core funeral revenue down $18M (~>3%), driven largely by a weaker mortality/flu-season comp versus prior year.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EPS Slightly Improved
Adjusted EPS of $0.97 vs. $0.96 prior year (+~1¢), with management noting underlying strength and that flat funeral volumes would have implied EPS of ~$1.12 (roughly 17% growth).
Read all positive updates
Company Guidance
Management reaffirmed 2026 normalized EPS of $4.05–$4.35 and confirmed adjusted operating cash flow guidance of $1.00–$1.06 billion; Q1 underpinning metrics included adjusted EPS of $0.97 (would have been ≈$1.12 if funeral volumes were flat, ~17% y/y), adjusted operating cash flow of $335M (≈$20M, +6% y/y), preneed cemetery sales +$32M (10%), cemetery revenue +7% and cemetery gross profit +11% (margin ≈33%, +120 bps), while funeral core revenue was down ~$18M (core services -6.6%) with core average revenue per service +3.5% and funeral gross margin ≈21% (down ~300 bps). For 2026 they now expect comparable funeral volumes -1% to -3%, full‑year trust returns ≈7% (Q1 -0.7%, April +4–5%), cash taxes ≈$120M (cash tax rate ~15–16% in 2026, reverting to ~24–25% thereafter), ETR 25–26%, corporate G&A run‑rate ~$40–42M/quarter, liquidity ≈$1.7B (≈$260M cash + $1.45B revolver), leverage ~3.68x net debt/EBITDA, an acquisition target of $75–125M, and guidance built on ~80% incremental margin on funerals, ~75% on cemeteries and roughly 3% fixed cost inflation.Service International Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.33B | 4.31B | 4.19B | 4.10B | 4.11B | 4.14B |
| Gross Profit | 1.14B | 1.14B | 1.09B | 1.09B | 1.15B | 1.32B |
| EBITDA | 1.24B | 1.31B | 1.26B | 1.26B | 1.27B | 1.44B |
| Net Income | 626.27M | 542.61M | 518.65M | 537.32M | 565.34M | 802.94M |
Balance Sheet | ||||||
| Total Assets | 18.57B | 18.65B | 17.38B | 16.36B | 15.07B | 15.69B |
| Cash, Cash Equivalents and Short-Term Investments | 257.96M | 243.58M | 218.77M | 221.56M | 191.94M | 268.63M |
| Total Debt | 5.16B | 5.14B | 4.92B | 4.80B | 4.43B | 4.06B |
| Total Liabilities | 16.99B | 17.02B | 15.70B | 14.81B | 13.39B | 13.78B |
| Stockholders Equity | 1.58B | 1.64B | 1.68B | 1.54B | 1.67B | 1.91B |
Cash Flow | ||||||
| Free Cash Flow | 629.04M | 554.25M | 555.80M | 507.25M | 456.02M | 616.95M |
| Operating Cash Flow | 965.44M | 942.80M | 944.91M | 869.04M | 825.73M | 920.61M |
| Investing Cash Flow | -589.88M | -548.28M | -620.95M | -469.39M | -447.88M | -414.93M |
| Financing Cash Flow | -353.94M | -374.73M | -319.64M | -381.14M | -448.00M | -465.62M |
Service International Technical Analysis
Negative
82.98
Price Trends
80.79
Negative
80.73
Negative
80.07
Negative
Market Momentum
-1.25
Positive
40.30
Neutral
43.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCI, the sentiment is Negative. The current price of 82.98 is above the 20-day moving average (MA) of 80.83, above the 50-day MA of 80.79, and above the 200-day MA of 80.07, indicating a bearish trend. The MACD of -1.25 indicates Positive momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 43.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCI.
Service International Risk Analysis
Service International disclosed 25 risk factors in its most recent earnings report. Service International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Service International Peers Comparison
UnderperformOutperform
Sector (61)
SCI
Service International
77.86
1.49
1.96%
CSV
Carriage Services
44.07
1.03
2.39%
FTDR
frontdoor
62.02
7.70
14.18%
Service International Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Service International approves governance changes to board structure
Neutral
May 8, 2026
At its May 6, 2026 annual shareholder meeting, Service Corporation International obtained shareholder approval for amendments to its Restated Articles of Incorporation and Amended and Restated Bylaws, with the charter changes effective May 7 and b...
Executive/Board ChangesShareholder Meetings
Service International shareholders scrutinize board election results
Negative
May 8, 2026
At its annual meeting of shareholders held on May 6, 2026, Service Corporation International’s investors elected nine directors to its board, with most nominees securing strong support but director Marcus A. Watts failing to meet the company...
Dividends
Service International Raises Quarterly Dividend, Signals Confidence
Positive
May 6, 2026
On May 6, 2026, Service Corporation International announced that its board approved a quarterly cash dividend of $0.36 per share, up 6% from the prior $0.34 distribution. The dividend is scheduled to be paid on June 30, 2026 to shareholders of rec...
Business Operations and StrategyDividends
Service International Declares Quarterly Cash Dividend for Shareholders
Positive
Feb 19, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.