Service International (SCI) AI Stock Analysis

• Market Cap: $11.64B
• Dividend Yield: 1.57%
• Average Volume (3M): 907.70K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.60
• Revenue Growth: 2.40%
• EPS Growth: 4.07%
• Country: US
• Employees: 25,000
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Personal Products & Services
• EPS (TTM): 0.96
• Shares Outstanding: 142,358,490
• 10 Day Avg. Volume: 904,806
• 30 Day Avg. Volume: 907,701
• PEG Ratio: -0.76
• Price to Book (P/B): 6.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.91
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 13.59
• Enterprise Value/Ebitda: 3.06
• 1Y Price Target: $90.67
• Price Target Upside: 10.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 65 Neutral
• Price Target: $88.00 ▲(7.46%Upside)

Service International's strong financial performance and positive corporate events are the primary strengths, driving the stock's potential. However, high leverage and moderate technical and valuation indicators suggest cautious optimism. The mixed earnings call results moderate the overall score.

Positive Factors

Analyst Recommendation

Analyst maintains a Buy rating given the solid fundamentals, solid cash flows, and attractive long-term growth outlook driven by aging demographics.

Earnings Growth

The average daily visitations at Service Corp.’s (SCI) locations grew 13% sequentially, better than the historical trends.

Negative Factors

Geographical Performance

Visits decreased month-over-month in Florida, Texas, and Illinois, with foot traffic down 3% in Illinois, 8% in Texas, and 10% in Florida.

Regional 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.

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 primarily through the provision of its core funeral and cemetery services. The company earns money from the sale of funeral products and services, including embalming, use of facilities for visitation and services, transportation, and cremation services. Additionally, SCI capitalizes on pre-need sales, where customers pay in advance for future funeral and cemetery services, which secures a steady cash flow and reduces future financial uncertainty. The sale of cemetery property, such as burial plots and mausoleums, also constitutes a significant revenue stream. Furthermore, SCI has established partnerships with various insurance companies to offer funeral insurance policies, contributing to its earnings. These strategic partnerships, along with a strong brand presence and extensive service network, are key factors in the company's financial performance.

Service International Financial Statement Overview

Summary

Service International shows commendable financial performance with strong profitability (Net Profit Margin of 14.97% and EBITDA Margin of 28.44%), steady revenue growth, and robust cash flow generation. Despite high leverage (Debt-to-Equity Ratio of 2.92), effective equity utilization (ROE of 38.23%) supports a solid financial position.

Income Statement

Service International has demonstrated solid financial performance in the TTM period, with a Gross Profit Margin of 26.28% and a Net Profit Margin of 14.97%. The Revenue Growth Rate from the previous year to TTM is 2.16%, indicating steady growth. Additionally, the EBIT Margin is strong at 22.43%, and the EBITDA Margin is 28.44%, reflecting robust operational efficiency. The company shows consistent profitability with healthy margins.

Balance Sheet

The company's balance sheet reveals a Debt-to-Equity Ratio of 2.92, indicating a relatively high level of leverage. However, the Return on Equity (ROE) is 38.23%, which is impressive and indicates effective use of equity to generate profits. The Equity Ratio stands at 9.54%, which suggests a lower proportion of equity financing relative to assets, highlighting potential risks associated with high leverage.

Cash Flow

In terms of cash flow, Service International has a Free Cash Flow Growth Rate of 16.65% from the previous year to TTM, showcasing strong cash generation capability. The Operating Cash Flow to Net Income Ratio is 1.64, and the Free Cash Flow to Net Income Ratio is 1.03, indicating good cash flow coverage of net income, reflecting a solid financial position in terms of liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.22B	4.19B	4.10B	4.11B	4.14B	3.51B
Gross Profit	1.11B	1.09B	1.09B	1.15B	1.30B	976.83M
EBITDA	1.20B	1.26B	1.26B	1.27B	1.44B	1.09B
Net Income	530.23M	518.65M	537.32M	565.34M	802.94M	515.91M
Balance Sheet
Total Assets	17.32B	17.38B	16.36B	15.07B	15.69B	14.52B
Cash, Cash Equivalents and Short-Term Investments	227.16M	218.77M	221.56M	191.94M	268.63M	230.86M
Total Debt	4.83B	4.92B	4.80B	4.34B	3.97B	3.83B
Total Liabilities	15.66B	15.70B	14.81B	13.39B	13.78B	12.76B
Stockholders Equity	1.65B	1.68B	1.54B	1.67B	1.91B	1.75B
Cash Flow
Free Cash Flow	648.43M	555.80M	507.25M	456.02M	616.95M	582.14M
Operating Cash Flow	1.04B	944.91M	869.04M	825.73M	920.61M	804.35M
Investing Cash Flow	-614.89M	-620.95M	-469.39M	-447.88M	-414.93M	-318.37M
Financing Cash Flow	-391.35M	-319.64M	-381.14M	-448.00M	-465.62M	-492.78M

Service International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.89
• 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 81.89 is above the 20-day moving average (MA) of 79.98, above the 50-day MA of 78.24, and above the 200-day MA of 79.01, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 66.62 is Neutral, neither overbought nor oversold. The STOCH value of 76.42 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	65 Neutral	$11.64B	22.53	32.71%	1.57%	2.40%	4.07%
CSV	65 Neutral	$736.16M	15.69	22.96%	0.96%	5.02%	45.34%
Sector *	56 Neutral	HK$24.59B	3.77	-2.05%	6.59%	-0.32%	-67.68%

Service International Corporate Events

Service International Shareholders Approve Key Proposals

On May 6, 2025, Service Corporation International held its annual meeting of shareholders where three proposals were voted on. The shareholders elected ten directors, approved PricewaterhouseCoopers LLP as the company’s registered public accounting firm for fiscal 2025, and supported the executive officer compensation plan. These decisions are likely to impact the company’s governance and financial oversight positively, aligning with shareholder interests and potentially enhancing the company’s market position.

Service International Boosts Share Repurchase Program

On May 6, 2025, Service Corporation International announced a quarterly cash dividend of thirty-two cents per share, payable on June 30, 2025, to shareholders of record as of June 13, 2025. Additionally, the company increased its share repurchase program by approximately $528 million, bringing the total authorization for share repurchases to $600 million, reflecting a strategic move to enhance shareholder value.