Service International (SCI) AI Stock Analysis

• Market Cap: $11.45B
• Dividend Yield: 1.53%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.56
• Revenue Growth: 2.65%
• EPS Growth: 7.42%
• Country: US
• Employees: 25,000
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Personal Products & Services
• EPS (TTM): 0.88
• Shares Outstanding: 140,240,020
• 10 Day Avg. Volume: 822,842
• 30 Day Avg. Volume: 1,062,923
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 3.86
• Enterprise Value/Gross Profit: 14.63
• Enterprise Value/Ebitda: 12.67
• 1Y Price Target: $92.75
• Price Target Upside: 14.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $90.00 ▲(10.80% Upside)

Service International's strong financial performance and positive corporate events are the most significant factors driving the stock score. While technical analysis and valuation suggest a balanced outlook, the mixed sentiment from the earnings call and high leverage are areas to watch.

Positive Factors

Cash Flow and Guidance

SCI reaffirmed its EPS guide and raised its cash flow outlook by 6%, alleviating concerns about narrowing guidance.

Financial Performance

Better funeral top line and margins drove the beat, with EBITDA 1% above consensus.

Sales Growth

Pre-need cemetery sales grew nicely, indicating that consumer discretionary weakness has not impacted pre-need.

Negative Factors

Location Performance

Visitations per day at Rose Hills declined 8% month-over-month in May, worse than 1% year-over-year for all SCI’s locations.

Visitor Decline

Average daily visitations at Service Corp.’s (SCI) locations declined 14% sequentially, worse than historical.

Visitor Trends

Visitations/day at Rose Hills (SCI’s largest location) declined -12% m/m in June, following a -5.1% decline m/m in May.

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 demonstrates strong financial performance with consistent revenue growth and solid profit margins. However, the company is highly leveraged, which could pose risks if not managed carefully. Continued focus on improving free cash flow conversion and managing debt levels will be crucial.

Income Statement

Service International has shown strong financial performance with consistent revenue growth, increasing from $4.10B in 2022 to $4.25B in TTM 2025. The company maintains a healthy Gross Profit Margin of 26.41% for TTM 2025, indicating strong operational efficiency. The Net Profit Margin improved to 16.92% from the previous year, showcasing effective cost management. However, the decrease in EBITDA Margin from 30.13% in 2024 to 22.14% in TTM 2025 could be a concern moving forward.

Balance Sheet

Service International's balance sheet reflects a stable financial position with an Equity Ratio of 8.68% for TTM 2025, indicating a highly leveraged structure. The Debt-to-Equity Ratio stands at 3.23, suggesting reliance on debt financing. ROE is strong at 46.06%, indicating high returns for equity holders, though the declining equity base warrants attention.

Cash Flow

The company demonstrates robust cash flow management with a Free Cash Flow growth rate of 13.54% from 2024 to TTM 2025. The Operating Cash Flow to Net Income Ratio is favorable at 1.40 for TTM 2025, highlighting the ability to convert income into cash. However, the Free Cash Flow to Net Income Ratio at 0.88 indicates room for improvement in leveraging free cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.25B	4.19B	4.10B	4.11B	4.14B	3.51B
Gross Profit	1.12B	1.09B	1.09B	1.15B	1.32B	976.83M
EBITDA	1.30B	1.26B	1.26B	1.27B	1.44B	1.09B
Net Income	534.93M	518.65M	537.32M	565.34M	802.94M	515.91M
Balance Sheet
Total Assets	17.98B	17.38B	16.36B	15.07B	15.69B	14.52B
Cash, Cash Equivalents and Short-Term Investments	255.39M	218.77M	221.56M	191.94M	268.63M	230.86M
Total Debt	5.04B	4.92B	4.80B	4.34B	3.97B	3.83B
Total Liabilities	16.42B	15.70B	14.81B	13.39B	13.78B	12.76B
Stockholders Equity	1.56B	1.68B	1.54B	1.67B	1.91B	1.75B
Cash Flow
Free Cash Flow	604.30M	555.80M	507.25M	456.02M	616.95M	582.14M
Operating Cash Flow	1.01B	944.91M	869.04M	825.73M	920.61M	804.35M
Investing Cash Flow	-576.36M	-620.95M	-469.39M	-447.88M	-414.93M	-318.37M
Financing Cash Flow	-347.50M	-319.64M	-381.14M	-448.00M	-465.62M	-492.78M

Service International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 81.23 is above the 20-day moving average (MA) of 79.17, above the 50-day MA of 79.55, and above the 200-day MA of 79.52, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 68.99 is Neutral, 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
SCI	78 Outperform	$11.45B	22.17	34.52%	1.53%	2.65%	7.42%
CSV	64 Neutral	$719.15M	13.76	24.38%	1.00%	3.55%	73.06%
Sector *	61 Neutral	$17.42B	12.39	-5.32%	3.12%	1.53%	-15.37%

Service International Corporate Events

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.