Service Corporation International
Service Corporation International Fundamental Analysis
Service Corporation International (SCI) shows moderate financial fundamentals with a PE ratio of 20.79, profit margin of 12.59%, and ROE of 33.83%. The company generates $4.3B in annual revenue with weak year-over-year growth of 2.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SCI's fundamental strength across five key dimensions:
Efficiency Score
WeakSCI struggles to generate sufficient returns from assets.
Valuation Score
ModerateSCI shows balanced valuation metrics.
Growth Score
ModerateSCI shows steady but slowing expansion.
Financial Health Score
WeakSCI carries high financial risk with limited liquidity.
Profitability Score
ModerateSCI maintains healthy but balanced margins.
Key Financial Metrics
Is SCI Expensive or Cheap?
P/E Ratio
SCI trades at 20.79 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SCI's PEG of 8.66 indicates potential overvaluation.
Price to Book
The market values Service Corporation International at 6.89 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.09 times EBITDA. This is generally considered low.
How Well Does SCI Make Money?
Net Profit Margin
For every $100 in sales, Service Corporation International keeps $12.59 as profit after all expenses.
Operating Margin
Core operations generate 22.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.83 in profit for every $100 of shareholder equity.
ROA
Service Corporation International generates $2.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Service Corporation International produces operating cash flow of $943.08M, showing steady but balanced cash generation.
Free Cash Flow
Service Corporation International generates strong free cash flow of $599.36M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.28 in free cash annually.
FCF Yield
SCI converts 5.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.34
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SCI Stacks Against Its Sector Peers
| Metric | SCI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.79 | 24.93 | Better (Cheaper) |
| ROE | 33.83% | 1149.00% | Weak |
| Net Margin | 12.59% | 750.00% | Weak |
| Debt/Equity | 3.14 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.55 | 9.21 | Weak Liquidity |
| ROA | 2.91% | 1268.00% | Weak |
SCI outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Service Corporation International's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.14%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
121.74%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
46.27%
Industry Style: Cyclical, Growth, Discretionary
High Growth