Service Corp International (SCI) stock analysis

P/E below its 5-year median

Service Corp International's P/E of 18.7 is below its own 5-year median of 20.6.

P/E below the industry

Service Corp International's P/E of 18.7 is below the Consumer discretionary median of 19.6.

EV/EBITDA below its 5-year median

Service Corp International's EV/EBITDA of 15.2 is below its 5-year median of 16.3.

P/B above the industry

Service Corp International's price-to-book of 6.52 is above the Consumer discretionary median of 1.80.

Trading above fair value

The share price of $75.40 is above our fair value estimate of $69.04.

Margin of safety under 20%

The price is 9.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 5.0% over the last twelve months, against a 5-year average of 1.0% a year.

Growing faster than the industry

Revenue grew 3.0% over the last twelve months; the Consumer discretionary median is 2.1%.

Guidance lowered

Service Corp International lowered its 2026 Net cash provided by operating activities excluding special items outlook on Jul 29, 2026.

Gross margin slipping

Gross margin was 25.9% over the last twelve months, against 26.4% a year earlier.

Return on equity over 15%

Return on equity was 35.7% over the last twelve months and averaged 34.8% over five years.

Return on capital over 10%

Return on invested capital was 11.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Service Corp International's return on equity of 35.7% is above the Consumer discretionary median of 5.6%.

Earnings grew over 5 years

Net income grew 1.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 12.7% over the last twelve months, against a 5-year average of 14.2%.

Net margin above the industry

Service Corp International's net margin of 12.7% is above the Consumer discretionary median of 2.2%.

High debt

Debt is 328% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 216% five years ago to 328%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 20.9% of total debt.

Interest not well covered

Operating income covers interest expense 3.9 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.40 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.76; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Service Corp International paid dividends worth 1.9% of the share price over the last twelve months.

Yield below Treasuries

The 1.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Service Corp International yields 1.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 9 fiscal years.

Covered by earnings

Dividends take 34.4% of net income.

Covered by free cash flow

Dividends take 28.3% of free cash flow.