Service International (SCI) AI Stock Analysis

• Market Cap: $11.17B
• Dividend Yield: 1.55%
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.60
• Revenue Growth: 2.40%
• EPS Growth: 4.07%
• Country: US
• Employees: 25,000
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Personal Products & Services
• EPS (TTM): 0.96
• Shares Outstanding: 142,358,490
• 10 Day Avg. Volume: 1,233,533
• 30 Day Avg. Volume: 1,417,688
• PEG Ratio: 8.18
• Price to Book (P/B): 6.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.66
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 13.90
• Enterprise Value/Ebitda: 3.13
• 1Y Price Target: $90.67
• Price Target Upside: 15.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Service International shows commendable financial health with strong profitability and cash flow. The high leverage is a concern, but effective equity utilization and positive shareholder actions, such as increased dividends and share buybacks, provide support. Mixed technical signals and balanced valuation contribute to a moderate overall score.

Positive Factors

Cash Flow

Cash flow grew nicely, maintaining a solid cash flow with a 5% free cash flow yield and potential upside from capital deployment.

Cemetery Performance

Cemetery revenues and margins above expectations, with gross margin +160bps year over year.

Funeral Revenues

Funeral revenues were 5% above consensus as volumes were 5% above expectations, with same-store revenues growing by 4%.

Negative Factors

Cemetery Sales

Pre-need Cemetery sales declined due to tougher comparisons and weakness in higher-end sales.

Funeral Volumes

Funeral volumes remain volatile and were worse than expected, partly due to normalization after a period of excess deaths.

Visitor Traffic

The strong March was not enough to offset weak Jan-Feb, and for the full quarter Q1, visits decreased -5% y/y.

Service International Business Overview & Revenue Model

Company Description

Service Corporation International (SCI) is the largest provider of funeral, cremation, and cemetery services in North America. Headquartered in Houston, Texas, SCI operates a network of funeral homes and cemeteries, offering comprehensive end-of-life services. The company is committed to providing compassionate support and guidance to families during their most difficult times, with a strong focus on customer service and customized memorialization options.

How the Company Makes Money

Service Corporation International generates revenue through several key streams. Primarily, the company earns money by providing funeral services, which include traditional funerals, cremations, and memorial services. Additionally, SCI generates income from the sale of cemetery property like burial plots, mausoleums, and niches for cremation urns. The company also offers pre-need services, allowing customers to arrange and pay for services in advance, which provides a steady stream of deferred revenue. Moreover, SCI benefits from its scale and extensive network, leading to operational efficiencies and cost-saving opportunities. Partnerships with local and national organizations can also enhance service offerings and expand market reach, further contributing to its revenue.

Service International Financial Statement Overview

Summary

Service International displays a commendable financial standing with robust profitability, steady revenue growth, and strong cash flow generation. Despite high leverage indicated by the Debt-to-Equity Ratio, the company effectively utilizes its equity to deliver strong returns. The financial stability is well supported by healthy cash flow metrics, positioning the company favorably in the Personal Products & Services industry.

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
	EBIT
945.24M	927.68M	944.25M	927.32M	1.19B	842.77M
	EBITDA
1.20B	1.26B	1.26B	1.27B	1.44B	1.09B
	Net Income Common Stockholders
530.23M	518.65M	537.32M	565.34M	802.94M	515.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
209.43M	218.77M	221.56M	191.94M	268.63M	230.86M
	Total Assets
16.70B	17.38B	16.36B	15.07B	15.69B	14.52B
	Total Debt
4.68B	4.92B	4.80B	4.34B	3.97B	3.83B
	Net Debt
4.47B	4.70B	4.58B	4.15B	3.70B	3.60B
	Total Liabilities
15.10B	15.70B	14.81B	13.39B	13.78B	12.76B
	Stockholders Equity
1.59B	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: 78.47
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 78.47 is above the 20-day moving average (MA) of 77.46, above the 50-day MA of 78.19, and below the 200-day MA of 78.77, indicating a neutral trend. The MACD of -0.44 indicates Negative momentum. The RSI at 54.13 is Neutral, neither overbought nor oversold. The STOCH value of 69.34 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	73 Outperform	$11.17B	21.62	32.71%	1.55%	2.40%	4.07%
CSV	69 Neutral	$688.14M	14.66	22.96%	1.03%	5.02%	45.34%
Sector *	61 Neutral	$6.98B	11.36	2.88%	3.90%	2.65%	-21.74%

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.

Spark’s Take on SCI Stock

According to Spark, TipRanks’ AI Analyst, SCI is a Outperform.

Service International shows strong financial performance with robust profitability and cash flow. However, high leverage and technical weakness present some risk. The fair valuation and shareholder-friendly corporate actions provide a balanced outlook. Mixed earnings results further contribute to a moderate overall score.

To see Spark’s full report on SCI stock, click here.

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.

Spark’s Take on SCI Stock

According to Spark, TipRanks’ AI Analyst, SCI is a Outperform.

Service International demonstrates a solid financial foundation with strong profitability and cash flow, despite high leverage. The valuation appears fair, though the stock is experiencing slight technical weakness. Positive dividend actions and mixed earnings call results contribute to a balanced outlook.

To see Spark’s full report on SCI stock, click here.

Service International Increases Quarterly Cash Dividend

On February 20, 2025, Service Corporation International announced a 6.7% increase in its quarterly cash dividend, raising it from thirty to thirty-two cents per share. This decision, payable on March 31, 2025, reflects the company’s commitment to returning value to shareholders while maintaining financial performance reviews each quarter, indicating potential positive impacts on its financial stability and shareholder relations.