NYSE:SCI

Stock Analysis Report

Service Corporation International

Executive Summary

Service Corporation International provides deathcare products and services in the United States and Canada.


Snowflake Analysis

Average dividend payer with questionable track record.


Similar Companies

Share Price & News

How has Service Corporation International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SCI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.1%

SCI

1.1%

US Consumer Services

-1.1%

US Market


1 Year Return

22.5%

SCI

30.5%

US Consumer Services

17.9%

US Market

Return vs Industry: SCI underperformed the US Consumer Services industry which returned 30.5% over the past year.

Return vs Market: SCI exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

SCIIndustryMarket
7 Day5.1%1.1%-1.1%
30 Day9.7%10.4%1.4%
90 Day19.8%18.7%6.9%
1 Year24.6%22.5%30.8%30.5%20.3%17.9%
3 Year77.1%68.3%123.9%113.4%47.8%38.3%
5 Year130.5%111.4%196.7%162.5%71.9%53.0%

Price Volatility Vs. Market

How volatile is Service Corporation International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Service Corporation International undervalued compared to its fair value and its price relative to the market?

25.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SCI ($52.53) is trading above our estimate of fair value ($46.21)

Significantly Below Fair Value: SCI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SCI is good value based on its PE Ratio (25.9x) compared to the Consumer Services industry average (26.4x).

PE vs Market: SCI is poor value based on its PE Ratio (25.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SCI is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: SCI is overvalued based on its PB Ratio (5.2x) compared to the US Consumer Services industry average (2.2x).


Next Steps

Future Growth

How is Service Corporation International forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCI's forecast earnings growth (6.5% per year) is above the savings rate (1.7%).

Earnings vs Market: SCI's earnings (6.5% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: SCI's earnings are forecast to grow, but not significantly.

Revenue vs Market: SCI's revenue (2.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SCI's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SCI's Return on Equity is forecast to be high in 3 years time (23.9%)


Next Steps

Past Performance

How has Service Corporation International performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCI has high quality earnings.

Growing Profit Margin: SCI's current net profit margins (11.4%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: SCI's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: SCI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SCI had negative earnings growth (-17.4%) over the past year, making it difficult to compare to the Consumer Services industry average (20.1%).


Return on Equity

High ROE: Whilst SCI's Return on Equity (20.28%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Service Corporation International's financial position?


Financial Position Analysis

Short Term Liabilities: SCI's short term assets ($373.6M) do not cover its short term liabilities ($556.7M).

Long Term Liabilities: SCI's short term assets ($373.6M) do not cover its long term liabilities ($11.3B).


Debt to Equity History and Analysis

Debt Level: SCI's debt to equity ratio (187.3%) is considered high.

Reducing Debt: SCI's debt to equity ratio has reduced from 223.8% to 187.3% over the past 5 years.

Debt Coverage: SCI's debt is not well covered by operating cash flow (18.4%).

Interest Coverage: SCI's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: SCI has a low level of unsold assets or inventory.

Debt Coverage by Assets: SCI's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Service Corporation International's current dividend yield, its reliability and sustainability?

1.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCI's dividend (1.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SCI's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: SCI's dividends per share have been stable in the past 10 years.

Growing Dividend: SCI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.5%), SCI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCI's dividends in 3 years are forecast to be well covered by earnings (33.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.0yrs

Average management tenure


CEO

Tom Ryan (54yo)

15yrs

Tenure

US$13,312,454

Compensation

Mr. Thomas Luke Ryan, also known as Tom, has been a Trust Manager of Weingarten Realty Investors since August 7, 2012. Mr. Ryan is the President of Service Corporation International since April 1, 2019. He ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD13.31M) is above average for companies of similar size in the US market ($USD6.39M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Ryan
Chairman15yrsUS$13.31m1.19% $113.3m
Eric Tanzberger
Senior VP & CFO13.7yrsUS$3.67m0.049% $4.6m
Sumner Waring
Senior Vice President of Operations & Chief Operating Officer0.8yrsUS$3.33m0.18% $17.4m
Gregory Sangalis
Senior VP12.6yrsUS$2.74m0.054% $5.1m
Debbie Young
Director of Investor Relations0yrsno datano data
Jay Andrew
Director of Corporate Communications0yrsno datano data
Steven Tidwell
Senior Vice President of Sales & Marketing7.5yrsno data0.028% $2.7m
Jamie Pierce
VP & Chief Marketing Officer2.1yrsno datano data
Philip Sprick
Vice President of Human Resources4.1yrsno datano data
Elisabeth Nash
Senior Vice President of Operations Services16.1yrsno data0.081% $7.7m

10.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: SCI's management team is seasoned and experienced (10 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Ryan
Chairman15yrsUS$13.31m1.19% $113.3m
Clifton Morris
Independent Director30.1yrsUS$270.01k0.12% $11.4m
Victor Lund
Independent Director20.1yrsUS$295.01k0.013% $1.2m
Robert Waltrip
Founder & Chairman Emeritus4.1yrsUS$3.69mno data
Anthony Coelho
Lead Independent Director4.1yrsUS$300.01k0.037% $3.5m
William Waltrip
Non-Independent Director34.1yrsUS$273.76k0.59% $55.7m
Marcus Watts
Independent Director7.8yrsUS$285.01k0.042% $4.0m
Lauri Ochoa
Independent Director4.8yrsUS$270.01k0.017% $1.6m
Alan Buckwalter
Independent Director16.8yrsUS$290.01k0.050% $4.7m
Jakki Haussler
Independent Director1.8yrsUS$247.51k0.0050% $479.6k

6.3yrs

Average Tenure

67.5yo

Average Age

Experienced Board: SCI's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Service Corporation International's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Service Corporation International
  • Ticker: SCI
  • Exchange: NYSE
  • Founded: 1962
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: US$9.496b
  • Shares outstanding: 180.78m
  • Website: https://www.sci-corp.com

Number of Employees


Location

  • Service Corporation International
  • 1929 Allen Parkway
  • Houston
  • Texas
  • 77019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1971
SVCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1971
SCI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1971

Biography

Service Corporation International provides deathcare products and services in the United States and Canada. The company operates through Funeral and Cemetery segments. Its funeral service and cemetery operations comprise funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other businesses. The company also provides professional services relating to funerals and cremations, including the use of funeral facilities and motor vehicles; arranging and directing services; and removal, preparation, embalming, cremation, memorialization, and travel protection, as well as catering services. In addition, it offers funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, online and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise. Further, the company’s cemeteries provide cemetery property interment rights, such as developed lots, lawn crypts, mausoleum spaces, niches, and other cremation memorialization and interment options; and sells cemetery merchandise and services, including memorial markers and bases, outer burial containers, flowers and floral placements, graveside services, merchandise installations, and interments, as well as offers preneed cemetery merchandise and services. Service Corporation International offers its products and services under the Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, Funeraria del Angel, Making Everlasting Memories, Neptune Society, and Trident Society brands. As of December 31, 2019, it owned and operated 1,471 funeral service locations; and 482 cemeteries, including 290 funeral service/cemetery combination locations covering 44 states, 8 Canadian provinces, the District of Columbia, and Puerto Rico. The company was founded in 1962 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:09
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.