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

Fundamentals

Established 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


Market Performance


7 Day Return

-0.02%

SCI

-2.5%

US Consumer Services

0.4%

US Market


1 Year Return

7.7%

SCI

21.6%

US Consumer Services

11.4%

US Market

Return vs Industry: SCI underperformed the US Consumer Services industry which returned 21.6% over the past year.

Return vs Market: SCI underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

SCIIndustryMarket
7 Day-0.02%-2.5%0.4%
30 Day-2.4%-2.7%0.3%
90 Day-2.5%-3.7%-1.2%
1 Year9.5%7.7%22.2%21.6%13.9%11.4%
3 Year86.0%76.6%95.3%84.8%47.2%37.6%
5 Year128.3%109.4%129.9%105.8%62.4%44.6%

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?

20.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SCI ($45.94) is trading above our estimate of fair value ($45.37)

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 (20.2x) compared to the Consumer Services industry average (25.7x).

PE vs Market: SCI is poor value based on its PE Ratio (20.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: SCI is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: SCI is overvalued based on its PB Ratio (4.8x) compared to the US Consumer Services industry average (1.9x).


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?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCI's forecast earnings growth (4.9% per year) is above the savings rate (2.7%).

Earnings vs Market: SCI's earnings (4.9% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: SCI's revenue (2.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SCI's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SCI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

25.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SCI's earnings have grown significantly by 25.8% 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 (-15.4%) over the past year, making it difficult to compare to the Consumer Services industry average (13.1%).


Return on Equity

High ROE: Whilst SCI's Return on Equity (23.73%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: SCI's Return on Assets is below or equal to the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: SCI has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Service Corporation International's financial position?


Financial Position Analysis

Short Term Liabilities: SCI's short term assets ($394.2M) do not cover its short term liabilities ($614.5M)

Long Term Liabilities: SCI's short term assets (394.2M) do not cover its long term liabilities (11.0B)


Debt to Equity History and Analysis

Debt Level: SCI's debt to equity ratio (196.9%) is considered high

Reducing Debt: SCI's debt to equity ratio has reduced from 221.1% to 196.9% over the past 5 years.

Debt Coverage: SCI's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: SCI's interest payments on its debt are well covered by EBIT (3.3x 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?

1.57%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SCI's dividend (1.57%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SCI's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (30.7%), 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 (34.3% payout ratio).


Next Steps

Management

What is the CEO of Service Corporation International's salary, the management and board of directors tenure and is there insider trading?

9.7yrs

Average management tenure


CEO

Tom Ryan (54yo)

14.7yrs

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 ($USD13.31M) is about average for companies of similar size in the US market ($USD6.91M).

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


Management Age and Tenure

9.7yrs

Average Tenure

55.5yo

Average Age

Experienced Management: SCI's management team is seasoned and experienced (9.7 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

67.5yo

Average Age

Experienced Board: SCI's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: SCI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$600,48816 Sep 19
Tammy Moore
EntityIndividual
Shares12,698
Max PriceUS$47.29
SellUS$370,46810 Sep 19
Tammy Moore
EntityIndividual
Shares7,900
Max PriceUS$46.89
SellUS$371,59717 Jun 19
Marcus Watts
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,130
Max PriceUS$45.71
SellUS$1,413,49906 Jun 19
William Waltrip
EntityIndividual
Role
Member of the Board of Directors
Non-Independent Director
Shares31,750
Max PriceUS$44.52
SellUS$250,78615 Mar 19
Anthony Coelho
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares6,325
Max PriceUS$39.65
SellUS$5,610,58001 Mar 19
Michael Webb
EntityIndividual
Shares134,565
Max PriceUS$41.69
SellUS$670,50228 Feb 19
John Mecom
EntityIndividual
Shares16,000
Max PriceUS$41.91
SellUS$1,060,52119 Nov 18
Gregory Sangalis
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares23,617
Max PriceUS$44.91
SellUS$737,23514 Nov 18
Gregory Sangalis
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares16,383
Max PriceUS$45.00

Ownership Breakdown


Management Team

  • Greg Sangalis (63yo)

    Senior VP

    • Tenure: 12.3yrs
    • Compensation: US$2.74m
  • Tom Ryan (54yo)

    Chairman

    • Tenure: 14.7yrs
    • Compensation: US$13.31m
  • Eric Tanzberger (50yo)

    Senior VP & CFO

    • Tenure: 13.3yrs
    • Compensation: US$3.67m
  • Sumner Waring (50yo)

    Senior Vice President of Operations & Chief Operating Officer

    • Tenure: 0.5yrs
    • Compensation: US$3.33m
  • Debbie Young

    Director of Investor Relations

    • Tenure: 0yrs
  • Steve Tidwell (57yo)

    Senior Vice President of Sales & Marketing

    • Tenure: 7.2yrs
  • Elisabeth Nash (57yo)

    Senior Vice President of Operations Services

    • Tenure: 15.8yrs
  • Phil Sprick (63yo)

    Vice President of Human Resources

    • Tenure: 3.8yrs
  • Jamie Pierce (34yo)

    VP & Chief Marketing Officer

    • Tenure: 1.8yrs
  • Jay Andrew

    Director of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Clifton Morris (84yo)

    Independent Director

    • Tenure: 29.8yrs
    • Compensation: US$270.01k
  • Vic Lund (71yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$295.01k
  • Bob Waltrip (88yo)

    Founder & Chairman Emeritus

    • Tenure: 3.8yrs
    • Compensation: US$3.69m
  • Tom Ryan (54yo)

    Chairman

    • Tenure: 14.7yrs
    • Compensation: US$13.31m
  • Tony Coelho (76yo)

    Lead Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$300.01k
  • William Waltrip (64yo)

    Non-Independent Director

    • Tenure: 33.8yrs
    • Compensation: US$273.76k
  • Marc Watts (60yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$285.01k
  • Lauri Ochoa (60yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$270.01k
  • Alan Buckwalter (72yo)

    Independent Director

    • Tenure: 16.4yrs
    • Compensation: US$290.01k
  • Jakki Haussler (61yo)

    • Tenure: 1.4yrs
    • Compensation: US$247.51k

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$8.378b
  • Shares outstanding: 182.36m
  • 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 oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:45
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.