Service Corporation International (SCI)
NYSE:SCI
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Service International
(NYSE:SCI)
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Rating:59Neutral
Price Target:
$80.00
▼(-3.45% Downside)
Action:ReiteratedDate:03/24/26
The score is anchored by solid fundamentals (profitability and cash generation) but capped by high leverage that limits flexibility. Technically, the stock is in a weak downtrend (below major moving averages with negative MACD), which weighs on near-term attractiveness. Management’s 2026 outlook is constructive with continued EPS and cash-flow growth, while valuation and dividend yield appear reasonable but not compelling enough to overcome leverage and weak momentum.
Positive Factors
Profitability & cash generation
SCI drove strong underlying profitability and reliable cash flow in 2025: healthy EBITDA and net margins plus nearly $0.94B operating cash flow and positive free cash flow. That durable cash generation supports dividends, buybacks and reinvestment even if growth moderates.
Negative Factors
High leverage & refinancing sensitivity
Elevated leverage materially constrains financial flexibility. With debt around $5.1B and net debt/EBITDA near 3.6x, SCI is exposed to interest-rate moves and refinancing risk; high leverage limits discretionary investment and raises vulnerability in economic slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & cash generation
SCI drove strong underlying profitability and reliable cash flow in 2025: healthy EBITDA and net margins plus nearly $0.94B operating cash flow and positive free cash flow. That durable cash generation supports dividends, buybacks and reinvestment even if growth moderates.
Read all positive factors
Service International (SCI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.54B
Dividend Yield1.66%
Average Volume (3M)1.19M
Price to Earnings (P/E)20.3
Beta (1Y)0.45
Revenue Growth3.41%
EPS Growth7.94%
CountryUS
Employees25,000
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)1.14
Shares Outstanding139,223,660
10 Day Avg. Volume1,320,902
30 Day Avg. Volume1,193,167
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 Cap1.45
Enterprise Value/Revenue3.87
Enterprise Value/Gross Profit14.65
Enterprise Value/Ebitda13.31
Forecast
1Y Price Target
$101.67Price Target Upside22.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)4.21
Revenue Forecast (FY)$4.44B
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
null...
Service International Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive financial and operational picture: EPS and full-year adjusted operating cash flow improved, preneed sales growth showed clear momentum, cemetery margins expanded, liquidity and shareholder returns were strong, and capital allocation priorities focused on high-return cemetery development. Offsetting weaknesses include funeral gross profit and margin pressure driven by selling compensation recognition and SCI Direct product mix, modest volume softness in funeral services, higher interest timing effects in the quarter, and some transitional cancellation issues tied to the insurance partner change. Management provided stable-to-modest growth guidance for 2026 with clear cost and capital priorities, while flagging volume risk as the main downside driver.Positive Updates
Quarterly and Full-Year EPS Growth
Adjusted EPS of $1.14 in Q4, up 8% year-over-year (from $1.06). Full-year adjusted EPS of $3.85, up 9% year-over-year (would have been $3.92 or +11% if the effective tax rate had remained constant).
Negative Updates
Funeral Gross Profit and Margin Pressure
Funeral gross profit declined by nearly $4M in Q4 and gross profit margin fell ~70 basis points to ~21%. Recognized selling compensation increased ~$5M (driven by shift from variable to more fixed compensation and immediate recognition for insurance-funded preneed).
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year EPS Growth
Adjusted EPS of $1.14 in Q4, up 8% year-over-year (from $1.06). Full-year adjusted EPS of $3.85, up 9% year-over-year (would have been $3.92 or +11% if the effective tax rate had remained constant).
Read all positive updates
Company Guidance
SCI guided 2026 adjusted EPS of $4.05–$4.35 (midpoint $4.20), implying 5%–13% growth (9% at the midpoint), and adjusted operating cash flow of about $1.0B–$1.06B (mid ≈ $1.03B) — the midpoint assumes roughly $70M of higher cash earnings and cash taxes declining ~$20M to ~$120M (with normalized cash tax rates of ~24%–25% beyond 2026 and an expected effective tax rate on the income statement of ~25%–26%). They expect funeral volume flat to slightly down with AR per case rising at inflationary rates and a modest cremation mix increase, funeral preneed production up low‑to‑mid single digits, and funeral gross margin expansion of ~20–60 bps; cemetery preneed production up low‑to‑mid single digits, cemetery revenue +2%–5%, and cemetery gross margin expansion of ~30–60 bps. Capital plan: maintenance CapEx ~$325M (≈$135M sites, $165M cemetery development, $25M digital/corp), acquisitions $75M–$125M, growth CapEx $70M–$80M. Below‑the‑line, a lower share count is expected to be a net benefit, partially offset by slightly higher interest and a slightly higher tax rate; corporate G&A is expected to average ~$40M–$42M per quarter. Balance sheet/liquidity: new $2.5B credit facility ( $750M term + $1.7B revolver) maturing Nov 2030, liquidity ≈ $1.7B, and leverage ~just above 3.65x (target 3.5x–4x); shareholder returns (dividends + buybacks) to continue.Service International Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
46
Neutral
Cash Flow
63
Positive
| 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
Positive
82.86
Price Trends
80.63
Positive
79.54
Positive
79.51
Positive
Market Momentum
0.29
Negative
61.01
Neutral
86.80
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 82.86 is above the 20-day moving average (MA) of 79.45, above the 50-day MA of 80.63, and above the 200-day MA of 79.51, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 86.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.85B | 16.54 | 101.49% | ― | 11.88% | 18.08% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $716.21M | 12.67 | 21.53% | 1.06% | 0.99% | 37.55% | |
59 Neutral | $11.54B | 20.35 | 33.83% | 1.66% | 3.41% | 7.94% |
* Consumer Cyclical Sector Average
SCI
Service International
82.86
7.05
9.31%
CSV
Carriage Services
45.47
8.35
22.49%
FTDR
frontdoor
54.52
16.56
43.62%
Service International Corporate Events
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.