Service International (SCI) AI Stock Analysis

• Market Cap: $11.04B
• Dividend Yield: 1.65%
• Average Volume (3M): 873.17K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.42
• 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: 1,013,030
• 30 Day Avg. Volume: 873,172
• 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: 1.50
• Enterprise Value/Revenue: 3.86
• Enterprise Value/Gross Profit: 14.60
• Enterprise Value/Ebitda: 13.38
• 1Y Price Target: $95.60
• Price Target Upside: 22.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 3.85
• Revenue Forecast (FY): $4.31B

• Rating: 67 Neutral
• Price Target: $84.00 ▲(7.21% Upside)

Service International's overall stock score is driven by strong financial performance and positive corporate events, such as the dividend increase. However, technical indicators suggest bearish momentum, and challenges in the funeral segment impact the earnings outlook. The stock is fairly valued, providing a stable dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory, reflecting the company's ability to expand its market reach and enhance service adoption.

Cash Flow Generation

Strong cash flow generation supports ongoing operations and potential investments, ensuring financial stability and growth opportunities.

Dividend Increase

The dividend increase reflects confidence in financial performance and commitment to shareholder value, indicating a stable financial strategy.

Negative Factors

High Leverage

Significant leverage poses risks if not managed carefully, potentially impacting financial flexibility and increasing vulnerability to economic shifts.

Decline in Funeral Revenue

A decline in funeral revenue suggests challenges in this segment, which could affect overall profitability and necessitate strategic adjustments.

Higher Funeral Selling Costs

Increased selling costs reduce profit margins, indicating potential cost management issues that could pressure long-term profitability.

Service International Business Overview & Revenue Model

Company Description

Service International (SCI) is a leading provider of integrated logistics and supply chain solutions, operating across multiple sectors including transportation, warehousing, and distribution. The company specializes in offering tailored services that enhance operational efficiency and reduce costs for businesses. With a robust portfolio of offerings, including freight forwarding, customs brokerage, and inventory management, SCI is committed to delivering exceptional value and reliability to its clients.

How the Company Makes Money

SCI generates revenue through several key streams. Primarily, the company earns money by charging clients for its logistics services, which include freight forwarding and customs brokerage fees. Additionally, income is generated from warehousing services, where clients pay for storage and inventory management. SCI also engages in strategic partnerships with shipping lines and carriers, allowing it to negotiate favorable rates and pass on savings to customers. These partnerships not only enhance service offerings but also provide additional revenue opportunities through collaborative ventures. Furthermore, the company leverages technology to optimize logistics processes, reducing operational costs and increasing profit margins.

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	236.43M
Total Debt	5.03B	4.92B	4.80B	4.43B	4.06B	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: 78.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 78.35 is above the 20-day moving average (MA) of 77.77, below the 50-day MA of 79.46, and below the 200-day MA of 78.68, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 46.79 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
FTDR	72 Outperform	$4.19B	16.49	91.16%	―	11.88%	18.08%
SCI	67 Neutral	$11.04B	21.13	33.48%	1.65%	3.41%	7.94%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CSV	54 Neutral	$675.94M	13.66	21.96%	1.06%	0.99%	37.55%

Service International Corporate Events

Service International Secures New Credit Agreement with JPMorgan

On November 20, 2025, Service Corporation International entered into a new senior unsecured credit agreement with JPMorgan Chase Bank and other financial institutions. This agreement includes a $750 million term loan facility and a $1.75 billion revolving credit facility, both maturing in November 2030. The credit agreement imposes various covenants and requires the company to maintain a specific leverage ratio, impacting its financial flexibility and operational strategies.

Service International Increases Quarterly Dividend by 6.3%

On November 5, 2025, Service Corporation International announced a 6.3% increase in its quarterly cash dividend, raising it to thirty-four cents per share from the previous thirty-two cents. This decision reflects the company’s ongoing commitment to providing value to its shareholders and indicates confidence in its financial performance. The dividend is payable on December 31, 2025, to shareholders of record as of December 15, 2025, highlighting the company’s stable financial strategy and positive outlook.