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SCI: Dividend Increase And Share Repurchases Will Support Future Upside Potential

Share Repurchase Momentum And Margin Gains Will Shape Future Performance

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SCI
AnalystConsensusTarget
Not Invested
Published 22 Aug 2024

Update shared on 11 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-8.1%
7D
1.6%

Analysts have modestly raised their price target on Service Corporation International to an implied fair value of about $95.40 per share. This reflects slightly higher discount rate and valuation assumptions while leaving long term growth and margin expectations essentially unchanged.

What's in the News

  • The board approves a 6.3% increase in the quarterly cash dividend to 34 cents per share, payable December 31, 2025, to shareholders of record on December 15, 2025 (Key Developments).
  • The company updates full year 2025 guidance, narrowing diluted EPS excluding special items to a range of $3.80 to $3.90 per share from prior guidance of $3.70 to $4.00 (Key Developments).
  • Share repurchase activity between July 1 and October 30, 2025, totals 1,040,779 shares for $82.65 million, bringing cumulative buybacks under the long running program to 96.81% of the authorized amount, or 210,449,433 shares for $5.53 billion (Key Developments).

Valuation Changes

  • Fair Value Estimate remains unchanged at an implied $95.40 per share, indicating no revision to the overall intrinsic value assessment.
  • The Discount Rate has risen slightly from about 7.90 percent to about 7.95 percent, reflecting a modestly higher required rate of return.
  • Revenue Growth is effectively unchanged at approximately 3.56 percent annually, signaling stable long term top line expectations.
  • The Net Profit Margin is effectively unchanged at roughly 14.05 percent, indicating steady long run profitability assumptions.
  • The Future P/E has risen slightly from about 22.92 times to about 22.95 times earnings, suggesting a marginally higher valuation multiple applied to forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.