Service International (SCI) AI Stock Analysis

• Market Cap: $11.25B
• Dividend Yield: 1.54%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.48
• 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): 0.87
• Shares Outstanding: 140,181,350
• 10 Day Avg. Volume: 1,167,412
• 30 Day Avg. Volume: 1,013,209
• PEG Ratio: 0.00
• Price to Book (P/B): 6.91
• Price to Sales (P/S): 2.77
• P/FCF Ratio: 20.86
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 3.86
• Enterprise Value/Gross Profit: 14.60
• Enterprise Value/Ebitda: 13.38
• 1Y Price Target: $95.60
• Price Target Upside: 19.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 3.85
• Revenue Forecast (FY): $4.31B

• Rating: 71 Outperform
• Price Target: $93.00 ▲(15.92% Upside)

Service International's overall stock score is driven by strong financial performance and positive technical indicators. The company's robust cash flow and consistent revenue growth are significant strengths. However, the high leverage ratio and challenges in the funeral segment pose risks. The valuation suggests the stock may be fairly valued, with moderate income potential from dividends.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong demand for SCI's services, supporting long-term growth and market position.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment and debt servicing, supporting sustainable growth.

Cemetery Segment Growth

Growth in the cemetery segment reflects effective market penetration and product offering, contributing to revenue diversification.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term stability if not managed carefully.

Decline in Preneed Funeral Sales

A decline in preneed funeral sales could signal challenges in market demand or competitive pressures, affecting future revenue.

Increased Corporate Expenses

Rising corporate expenses can pressure margins and reduce profitability, impacting the company's ability to invest in growth.

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 multiple streams, primarily by offering logistics services such as freight forwarding and transportation solutions, which are billed based on distance, weight, and service type. Additionally, the company earns money from its warehousing services by charging clients for storage space and inventory management, often on a per-pallet or per-square-foot basis. SCI has established significant partnerships with major shipping carriers and technology providers, enhancing its service offerings and operational efficiency. These collaborations help SCI to negotiate better rates and provide value-added services, which contribute to its overall earnings. Furthermore, SCI may also leverage technology solutions, such as supply chain management software, to create subscription-based revenue models, providing clients with ongoing support and analytics.

Service International Financial Statement Overview

Summary

Service International exhibits strong financial performance with consistent revenue growth and solid profitability. The company effectively manages its operations, as evidenced by healthy margins and robust cash flow generation. However, the high leverage ratio is a potential risk factor that needs careful monitoring.

Income Statement

Service International has demonstrated consistent revenue growth, with a notable increase of 3.9% in the TTM period. The company maintains healthy profitability metrics, with a gross profit margin of 26.4% and a net profit margin of 12.6% in the TTM. EBIT and EBITDA margins are strong at 22.6% and 30.5%, respectively, indicating efficient operational management. However, there is a slight decline in gross profit margin compared to previous years, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.23 in the TTM, indicating significant leverage, which could pose a risk if not managed properly. Return on equity is robust at 32.8%, reflecting effective use of equity to generate profits. The equity ratio stands at 8.5%, suggesting a lower proportion of equity financing relative to total assets, which may limit financial flexibility.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 141.4% in the TTM, showcasing the company's ability to generate cash. The operating cash flow to net income ratio is 1.41, indicating good cash conversion from earnings. The free cash flow to net income ratio is 60.1%, reflecting solid cash generation relative to net income. These metrics highlight a strong cash position, supporting potential reinvestment and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.29B	4.19B	4.10B	4.11B	4.14B	3.51B
Gross Profit	1.13B	1.09B	1.09B	1.15B	1.32B	976.83M
EBITDA	1.24B	1.26B	1.26B	1.27B	1.44B	1.09B
Net Income	534.57M	518.65M	537.32M	565.34M	802.94M	515.91M
Balance Sheet
Total Assets	18.36B	17.38B	16.36B	15.07B	15.69B	14.52B
Cash, Cash Equivalents and Short-Term Investments	241.34M	218.77M	221.56M	191.94M	268.63M	230.86M
Total Debt	5.03B	4.92B	4.80B	4.34B	3.97B	3.83B
Total Liabilities	16.79B	15.70B	14.81B	13.39B	13.78B	12.76B
Stockholders Equity	1.57B	1.68B	1.54B	1.67B	1.91B	1.75B
Cash Flow
Free Cash Flow	618.89M	555.80M	507.25M	456.02M	616.95M	582.14M
Operating Cash Flow	993.98M	944.91M	869.04M	825.73M	920.61M	804.35M
Investing Cash Flow	-477.77M	-620.95M	-469.39M	-447.88M	-414.93M	-318.37M
Financing Cash Flow	-457.76M	-319.64M	-381.14M	-448.00M	-465.62M	-492.78M

Service International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 80.23
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 80.23 is below the 20-day moving average (MA) of 81.61, below the 50-day MA of 81.17, and above the 200-day MA of 78.97, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 38.91 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	71 Outperform	$11.25B	21.63	33.48%	1.54%	3.41%	7.94%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CSV	54 Neutral	$650.91M	13.29	21.96%	1.08%	0.99%	37.55%

Service International Corporate Events

Service Corporation International Reports Strong Q3 2025 Results

Service Corporation International (SCI), headquartered in Houston, Texas, is the largest provider of funeral, cemetery, and cremation services in North America, offering a wide range of deathcare products and services to over 700,000 families annually.

Service International Declares Quarterly Cash Dividend

On August 6, 2025, Service Corporation International’s Board of Directors declared a quarterly cash dividend of thirty-two cents per share of common stock, payable on September 30, 2025, to shareholders of record as of September 15, 2025. This announcement underscores the company’s commitment to providing regular dividends, although future dividends remain subject to the Board’s quarterly review of financial performance and other factors such as credit agreements and tax laws.

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.

Service Corporation International Reports Strong Q2 2025 Results

Service Corporation International (SCI), headquartered in Houston, Texas, is North America’s leading provider of funeral, cemetery, and cremation services, offering a comprehensive range of final arrangement planning options to over 700,000 families annually.

Service Corporation International’s Mixed Earnings Call Insights

The latest earnings call from Service Corporation International (SCI) presented a balanced mix of optimism and challenges. The company highlighted growth in earnings per share, funeral revenue, and preneed cemetery sales production, alongside robust cash flow and liquidity. However, the call also acknowledged hurdles such as decreased preneed funeral sales production, a decline in cemetery gross profit, and increased corporate expenses.