Service Corporation International (SCI) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Service Corporation International (SCI) Consumer Business Overview

Service Corporation International (SCI) is the leading deathcare provider in North America, offering funeral and cemetery services and merchandise. With a wide network of locations and established brands, SCI caters to diverse customer preferences, operating in a stable yet evolving market with a focus on preneed sales and customer service.

What Is the Investment Thesis for SCI?

Service Corporation International presents a stable investment profile within the deathcare industry, driven by predictable demand and a fragmented competitive landscape. With a market capitalization of $10.9B and a P/E ratio of 17.54, SCI demonstrates consistent profitability, supported by a 14.5% profit margin. The company's dividend yield of 1.70% offers a steady income stream for investors. Growth catalysts include increasing preneed sales and strategic acquisitions of smaller funeral homes and cemeteries. However, potential risks include changing consumer preferences towards cremation and increased competition from smaller, independent operators. The company's beta of 0.98 indicates moderate volatility relative to the market.

Based on FMP financials and quantitative analysis

SCI Key Highlights

Market capitalization of $10.9B, reflecting its dominant position in the deathcare industry.

• P/E ratio of 17.54, indicating a reasonable valuation compared to earnings.
• Profit margin of 14.5%, showcasing efficient operations and profitability.
• Gross margin of 26.2%, reflecting the company's ability to manage costs effectively.
• Dividend yield of 1.70%, providing a steady income stream for investors.

Who Are SCI's Competitors?

SCI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are SCI's Key Strengths?

Largest provider of deathcare services in North America.

• Extensive network of funeral homes and cemeteries.
• Established brand reputation and customer trust.
• Strong preneed sales program.

What Are SCI's Weaknesses?

High debt levels.

• Exposure to changing consumer preferences.
• Dependence on mortality rates.
• Potential for negative publicity related to service quality.

What Could Drive SCI Stock Higher?

Increasing preneed sales driven by aging population and consumer awareness.

• Strategic acquisitions of smaller funeral homes and cemeteries to expand market share.
• Growth in cremation services driven by changing consumer preferences.
• Potential for new partnerships with healthcare providers and senior living facilities.

What Are the Key Risks for SCI?

Financial-distress signal — its Altman Z-Score of 0.77 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $44.8M recently.
• Increased competition from smaller, independent operators and online providers.
• Changing consumer preferences towards cremation impacting traditional burial revenue.
• Economic downturn impacting discretionary spending on funeral services.
• Regulatory changes affecting the deathcare industry, such as environmental regulations on cremation.

What Are the Growth Opportunities for SCI?

• Expansion of Preneed Sales: SCI can capitalize on the increasing trend of preneed funeral arrangements to drive revenue growth. The preneed market allows individuals to plan and fund their funeral services in advance, providing a stable and predictable revenue stream for SCI. By expanding its preneed sales efforts through targeted marketing and partnerships with financial institutions, SCI can increase its market share and secure future revenue. The North American preneed market is estimated to be worth billions of dollars, offering significant growth potential for SCI.
• Strategic Acquisitions: SCI can pursue strategic acquisitions of smaller funeral homes and cemeteries to expand its network and market presence. The deathcare industry is highly fragmented, with many small, family-owned businesses. Acquiring these businesses allows SCI to consolidate the market, increase its market share, and realize synergies through economies of scale. SCI has a proven track record of successful acquisitions, and this strategy can continue to drive growth in the future. These acquisitions can provide access to new markets and customer bases.
• Enhanced Digital Presence: Investing in digital technologies and online platforms can enhance customer experience and drive revenue growth. SCI can develop online memorialization tools, virtual funeral services, and online preneed planning platforms to cater to the evolving needs of tech-savvy customers. By enhancing its digital presence, SCI can attract new customers, improve customer satisfaction, and increase online sales. This includes offering online grief support resources and virtual tours of cemetery properties.
• Cremation Services Expansion: As cremation rates continue to rise, SCI can expand its cremation service offerings to meet the growing demand. This includes investing in cremation facilities, developing cremation-related merchandise, and offering unique cremation memorialization options. By expanding its cremation services, SCI can attract a larger customer base and increase revenue. This also involves offering eco-friendly cremation options and personalized memorial services.
• Geographic Expansion in Canada: SCI can further expand its presence in the Canadian market through strategic acquisitions and organic growth initiatives. The Canadian deathcare market offers significant growth opportunities, and SCI can leverage its expertise and resources to capitalize on this potential. By expanding its network of funeral homes and cemeteries in Canada, SCI can increase its market share and drive revenue growth. This expansion can focus on underserved regions and niche markets.

What Are SCI's Competitive Advantages?

• Extensive network of funeral homes and cemeteries provides a geographic advantage.
• Established brand reputation and customer trust.
• Economies of scale in purchasing and operations.
• Preneed sales provide a recurring revenue stream.

What Does SCI Do?

Service Corporation International (SCI), incorporated in 1962 and headquartered in Houston, Texas, is the largest provider of deathcare products and services in the United States and Canada. The company operates through two primary segments: Funeral and Cemetery. SCI's funeral service operations include funeral homes, cremation services, and related merchandise sales. These services encompass professional arrangements, embalming, cremation, memorialization, and catering. The cemetery segment provides interment rights, such as burial plots and mausoleum spaces, along with cemetery merchandise like memorial markers and outer burial containers. SCI offers preneed arrangements for both funeral and cemetery products and services, allowing customers to plan and fund their arrangements in advance. The company's extensive network comprises 1,471 funeral service locations and 488 cemeteries, including 299 combination locations, across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. SCI operates under various brands, including Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, Funeraria del Angel, Making Everlasting Memories, Neptune Society, and Trident Society, catering to diverse customer preferences and needs.

What Products and Services Does SCI Offer?

• Provide funeral services, including arrangement, embalming, and cremation.
• Offer cemetery interment rights, such as burial plots and mausoleum spaces.
• Sell funeral merchandise, including caskets, urns, and memorial products.
• Offer preneed funeral and cemetery arrangements.
• Operate funeral homes, cemeteries, and crematories.
• Provide memorialization services, including memorial markers and online tributes.
• Offer catering services for funeral receptions.

How Does SCI Make Money?

• Generate revenue from funeral service fees, including professional services and facility usage.
• Generate revenue from the sale of cemetery property and interment rights.
• Generate revenue from the sale of funeral and cemetery merchandise.
• Generate revenue from preneed funeral and cemetery arrangements.

What Industry Does SCI Operate In?

The deathcare industry is characterized by stable demand driven by mortality rates, with trends shifting towards cremation over traditional burial. The market is fragmented, with SCI being the largest player, competing with smaller regional and local funeral homes and cemeteries. The industry is experiencing growth in preneed sales, as consumers increasingly plan and fund their funeral arrangements in advance. Technological advancements, such as online memorialization and virtual funeral services, are also shaping the industry. SCI's established brand reputation and extensive network provide a competitive advantage in this evolving landscape.

Who Are SCI's Key Customers?

• Individuals and families planning funeral or cremation services.
• Individuals seeking cemetery interment rights.
• Individuals planning preneed funeral and cemetery arrangements.
• Families seeking memorialization products and services.

Service Corporation International (SCI) Valuation Context

Valued at $10.9B, SCI is classified as a large-cap stock. Analyst price targets span from $105.00 to $105.00, with a consensus of $105.00. At the current price of $79.73, that implies approximately 32% upside potential. Relative to its peer group, SCI's quantitative score of 50/100 is below the peer average of 84/100.

SCI Revenue & Earnings Trend

In Q2 FY2026, SCI generated $1.10B in top-line revenue, marking a sequential increase of 0.6%. The company recorded net income of $124.9M, with diluted EPS of $0.90. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Consumer Cyclical. Across the four most recent quarters, SCI averaged $1.12 in diluted EPS.

Company Profile

Service Corporation International operates in the Personal Products & Services industry within the Consumer Cyclical sector. It is headquartered in Houston, US. The company is led by CEO Thomas Luke Ryan. SCI has traded publicly since 1980.

Return on equity for Service Corporation International stands at 39.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.3%, showing how much profit it generates from its asset base. SCI trades at a trailing price-to-earnings ratio of 17.54, below the Consumer Cyclical sector average of ~32.70x. Its free cash flow yield is 6.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.53 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.7%, the inverse of the P/E and a quick read on earnings relative to price.

Service Corporation International's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.77 places it in the distress zone, a signal of elevated financial risk.

Service Corporation International has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 2.1% above estimates on average.

Over the past six months, Service Corporation International insiders filed 21 SEC Form 4 transactions — 9 sales and 12 purchases. On net that is roughly 507K shares disposed (about $44.8M), a signal worth weighing alongside the fundamentals.

SCI Financials

SCI Latest News

SCI Analyst Consensus

SCI MoonshotScore

What Investors Ask About Service Corporation International (SCI) — Consumer Cyclical

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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