Want to see SCI full AI Analyst Report?
Top Page
Service International
(NYSE:SCI)
Select Model
Select Model
Rating:70Neutral
Price Target:
$94.00
▲(14.17% Upside)
Action:Downgraded
Date:08/05/26
The score is driven by strong technical momentum and a constructive earnings outlook with improved cash-flow guidance. This is tempered by the company’s highly levered balance sheet, which is the biggest fundamental risk factor, and a valuation that looks reasonable but not notably cheap given the ~19x P/E and ~1.6% yield.
Positive Factors
Strong cash generation and upgraded guidance
Management raised adjusted operating cash flow and free cash flow guidance, reflecting sustainable operating cash conversion and better working capital. Higher recurring cash generation supports reinvestment, debt servicing and shareholder returns over the coming 2–6 months.
Negative Factors
Elevated leverage and refinancing risk
High leverage amplifies returns but reduces financial flexibility. Net leverage near management's 3.5–4.0x target and upcoming 2027 notes increase refinancing and interest-rate sensitivity, constraining M&A, dividend flexibility and downside protection if volumes weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and upgraded guidance
Management raised adjusted operating cash flow and free cash flow guidance, reflecting sustainable operating cash conversion and better working capital. Higher recurring cash generation supports reinvestment, debt servicing and shareholder returns over the coming 2–6 months.
Read all positive factors
Service International (SCI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.37B
Dividend Yield1.63%
Average Volume (3M)1.35M
Price to Earnings (P/E)18.4
Beta (1Y)0.35
Revenue Growth2.89%
EPS Growth3.84%
CountryUS
Employees25,000
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)4.52
Shares Outstanding136,291,580
10 Day Avg. Volume1,180,489
30 Day Avg. Volume1,353,803
Financial Highlights & Ratios
PEG Ratio2.80
Price to Book (P/B)6.74
Price to Sales (P/S)2.56
P/FCF Ratio19.92
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$100.40Price Target Upside21.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)4.18
Revenue Forecast (FY)$4.46B
Service International Business Overview & Revenue Model
Company Description
Service Corporation International (SCI) is a leading provider of comprehensive end-of-life products and services across the United States and Canada. The company structures its extensive operations into two primary divisions: Funeral Services and ...
How the Company Makes Money
SCI primarily makes money by selling deathcare services and merchandise through its funeral homes and cemeteries. Key revenue streams include: (1) Funeral and cremation services: Fees for professional services (arrangement services, use of facilit...
Service International Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed multiple clear operational and financial positives: solid preneed sales momentum (especially Cemetery), materially stronger operating cash flow, a raised cash flow guidance midpoint, robust free cash flow growth, active capital returns, disciplined liquidity and M&A execution, and early benefits from sales strategy and digital/AI initiatives. Offsetting these positives were near-term margin pressures from accounting recognition of selling compensation tied to the shift in product and pay mix, lower Funeral case volumes earlier in the year, preneed recognition timing/backlog effects that depress near-term recognition rates, and some below-the-line/one-time tax and interest dynamics. Management indicated these headwinds are largely transitional and expects margin expansion and double-digit EPS growth in H2 2026, leading to a net positive outlook.Positive Updates
Earnings Per Share Improved Year-over-Year
GAAP EPS of $0.90 in Q2 2026 versus $0.88 in Q2 2025, a $0.02 increase driven by operating income improvements and lower share count.
Negative Updates
Funeral Volume and Margin Pressures
Core Funeral volume declined ~1.7% in the quarter and Funeral profitability declined somewhat; Funeral gross margin comparisons were pressured by higher recognized selling compensation and other transitional items.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings Per Share Improved Year-over-Year
GAAP EPS of $0.90 in Q2 2026 versus $0.88 in Q2 2025, a $0.02 increase driven by operating income improvements and lower share count.
Read all positive updates
Company Guidance
SCI confirmed full‑year adjusted EPS guidance of $4.10–$4.30 (midpoint $4.20) and reiterated expectations for double‑digit EPS growth in H2 2026 versus H2 2025; it raised full‑year adjusted operating cash flow midpoint by $50M to $1.085B (Q2 adjusted OCF was $239M, +$71M or +42% YoY), increased maintenance CapEx by $10M to $335M (Cemetery development/maintenance each up ≈$5M), and projects adjusted free cash flow of $750M (up 18% vs 2025 FCF of $637M); cash tax guidance remains ~ $120M with a 2026 cash tax rate ~15–16% (normalized 24–25% would imply ≈$190M taxes and FCF ≈$680M), and GAAP effective tax rate ~25–26%; liquidity was ~$1.6B (≈$260M cash + ≈$1.4B credit), net leverage ~3.77x (midpoint target 3.5–4.0x) with $137M of 7.5% 2027 notes current; Q2 capital deployed totaled $120M (≈$80M maintenance, $25M growth, $6M digital, $15M acquisitions), Q2 shareholder returns were $172M (≈$123M buybacks—1.5M shares at ≈$76—and just under $50M dividends), YTD repurchases $266M for 3.3M shares at $78 avg with $96M dividends YTD, subsequent repurchases of 330k shares for ~$26M (~$78), shares outstanding ≈136M, and full‑year acquisition target remains $75–125M.Service International Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.37B | 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 | 1.16B | 1.33B | 1.26B | 1.26B | 1.27B | 1.44B |
| Net Income | 628.28M | 542.61M | 518.65M | 537.32M | 565.34M | 802.94M |
Balance Sheet | ||||||
| Total Assets | 19.21B | 18.65B | 17.38B | 16.36B | 15.07B | 15.69B |
| Cash, Cash Equivalents and Short-Term Investments | 260.41M | 243.58M | 218.77M | 221.56M | 191.94M | 268.63M |
| Total Debt | 5.30B | 5.14B | 4.92B | 4.80B | 4.43B | 4.06B |
| Total Liabilities | 17.68B | 17.02B | 15.70B | 14.81B | 13.39B | 13.78B |
| Stockholders Equity | 1.54B | 1.64B | 1.68B | 1.54B | 1.67B | 1.91B |
Cash Flow | ||||||
| Free Cash Flow | 706.41M | 554.25M | 555.80M | 507.25M | 456.02M | 616.95M |
| Operating Cash Flow | 1.04B | 942.80M | 944.91M | 869.04M | 825.73M | 920.61M |
| Investing Cash Flow | -676.81M | -548.28M | -620.95M | -469.39M | -447.88M | -414.93M |
| Financing Cash Flow | -364.19M | -374.73M | -319.64M | -381.14M | -448.00M | -465.62M |
Service International Technical Analysis
Positive
82.33
Price Trends
77.65
Positive
78.88
Positive
79.11
Positive
Market Momentum
1.94
Positive
57.16
Neutral
12.28
Positive
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 82.33 is below the 20-day moving average (MA) of 82.45, above the 50-day MA of 77.65, and above the 200-day MA of 79.11, indicating a bullish trend. The MACD of 1.94 indicates Positive momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 12.28 is Positive, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.78B | 21.77 | 102.24% | ― | 9.26% | 12.10% | |
70 Outperform | $543.97M | 11.80 | 17.07% | 1.16% | 1.33% | -16.56% | |
70 Neutral | $11.37B | 18.44 | 39.72% | 1.65% | 2.89% | 3.84% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
SCI
Service International
83.35
2.71
3.36%
CSV
Carriage Services
33.64
-13.81
-29.11%
FTDR
frontdoor
83.58
23.91
40.06%
Service International Corporate Events
Business Operations and StrategyDividends
Service International Announces Quarterly Cash Dividend Declaration
Positive
Aug 5, 2026
On August 5, 2026, Service Corporation International’s Board of Directors declared a quarterly cash dividend of $0.36 per share of common stock, underscoring the company’s capital-return strategy and confidence in its financial positio...
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Service International faces shareholder-driven board governance scrutiny
Negative
Jul 29, 2026
At Service Corporation International’s 2026 annual meeting of shareholders, Lead Independent Director and Nominating and Corporate Governance Committee Chair Mr. Watts failed to receive a majority of votes cast for his re‑election, tri...
Business Operations and StrategyStock Buyback
Service International Expands Share Repurchase Authorization Program
Positive
Jun 12, 2026
On June 11, 2026, Service Corporation International’s board authorized an additional $472 million for its share repurchase program, lifting the total available buyback capacity to $600 million. The decision underscores the funeral and cemete...
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...
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.