Service Corporation International (SCI) AI Stock Analysis

NYSE: SCIAI research summary: business, growth, valuation, analysts, bull and bear case.

SCI AI stock analysis summary

AI Research

Service Corporation International is the largest provider of deathcare products and services in North America, generating $4.37B in trailing twelve-month revenue. The business delivers steady profitability with a 21.0% TTM operating margin and a 34.7% return on equity. However, the company maintains a leveraged balance sheet with $5.04B in net debt alongside regular shareholder returns via dividends and buybacks.

Market cap
$11.09B
Revenue (TTM)
$4.37B
P/E
21.3x
fwd 16.9x
1Y return
1.8%
S&P 500 16.8%
Avg. target
$100.33
23.3% vs last close

Bull case

  • SCI maintains strong cash generation, producing $554.2M in free cash flow and $942.8M in operating cash flow in FY2025.
  • Analyst sentiment is entirely favorable across 6 analysts, with a mean price target of $100.33 representing 23.3% upside potential.
  • Shareholder returns remain aggressive, with a 16.8% five-year share count reduction and a 10.8% five-year annualized dividend growth rate.

Bear case

  • The balance sheet is heavily leveraged with $5.30B in total debt and net debt of $5.04B against $1.54B in shareholders' equity.
  • Multiples trade at a premium to peers, including a trailing P/E of 21.3x and price-to-sales of 2.5x versus peer medians of 18.0x and 0.7x.
  • Top-line growth has been modest, with a 5-year revenue CAGR of 4.2% and recent quarterly revenue growth of 3.6%.

What Service Corporation International does

Service Corporation International provides deathcare products and services across the United States and Canada. Operating through Funeral and Cemetery segments, it manages funeral service locations, crematoria, and cemeteries. The Funeral segment provides arrangement of ceremonies, embalming, cremation, memorialization, catering, travel protection, and merchandise such as caskets and urns. The Cemetery segment offers interment rights including lots, crypts, mausoleum spaces, and niches, alongside cemetery merchandise, installations, and preneed services. SCI operates under brands such as Dignity Memorial, National Cremation Society, Funeraria del Angel, Neptune Society, and Trident Society, running 1,471 funeral service locations and 488 cemeteries as of December 31, 2021.

Growth and profitability

Revenue rose from $4.14B in FY2021 to $4.31B in FY2025, reflecting a 5-year CAGR of 4.2%. After minor revenue declines of 0.8% in FY2022 and 0.2% in FY2023, growth resumed with a 2.1% increase in FY2024 and 2.9% in FY2025. Operating margins compressed from 28.7% in FY2021 to 22.6% in FY2025, while net margin settled at 12.6% with net income of $542.6M. Diluted EPS reached $3.85 in FY2025, supported by steady free cash flow of $554.2M. For the latest quarter ended June 30, 2026, quarterly revenue increased 3.6% year-over-year and quarterly earnings grew 4.7%, bringing TTM EPS to $3.82.

SCI income statement →

Balance sheet and cash flow

As of June 30, 2026, SCI held $260.4M in cash and short-term investments against $5.30B in total debt, resulting in net debt of $5.04B. The debt-to-equity ratio was 3.45, with a current ratio of 0.53 and total assets of $19.21B. In FY2025, operating cash flow reached $942.8M, funding $388.6M in capital expenditures. Cash allocation prioritized capital returns, deploying $461.0M toward share buybacks and $183.6M to dividends. Over five years, the company reduced its share count by 16.8%.

SCI balance sheet →

Valuation and performance

At $81.37 per share, SCI trades at a trailing P/E of 21.3x and a forward P/E of 16.9x, compared to the median of its US-listed Consumer Cyclical peers at 18.0x and 14.1x, respectively. Its enterprise value stands at $15.69B, with an EV/EBITDA of 11.9x versus the peer median of 11.1x. The company commands a price-to-sales multiple of 2.5x compared to the peer median of 0.7x. Over the past year, SCI gained 1.8%, lagging the S&P 500 return of 16.8%, and over five years it delivered 42.0% versus 83.0% for the S&P 500.

SCI key metrics →

SCI dividend

SCI offers a forward annual dividend of $1.44 per share, resulting in a dividend yield of 1.77% as of October 16, 2026. The company has paid dividends for 22 consecutive years, supported by a payout ratio of 36.1%. Over the last five years, dividends increased at an annualized rate of 10.8%. The most recent ex-dividend date was September 15, 2026.

SCI dividend history →

What analysts expect

Wall Street sentiment is positive, with 4 Strong Buy ratings, 2 Buy ratings, and no Hold, Sell, or Strong Sell recommendations. The mean price target is $100.33, indicating 23.3% upside from the last close of $81.37. For the fiscal year ending December 31, 2026, analysts estimate EPS of $4.19 on revenue of $4.47B. For the following fiscal year, 6 analysts forecast EPS of $4.58 on revenue of $4.63B. SCI has beaten EPS estimates in 2 of the last 4 quarters, with next earnings scheduled for October 28, 2026.

SCI forecast and price target →

Key risks and what to watch

  • Liquidity risk is highlighted by a current ratio of 0.53 and cash reserves of just $260.4M against $5.30B in total debt.
  • High leverage is reflected in a debt-to-equity ratio of 3.45, which could increase financing costs.
  • SCI has missed expectations periodically, topping EPS forecasts in only 2 of the past 4 quarters.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this SCI AI stock analysis

This page is an AI-written research summary of Service Corporation International (SCI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SCI income statement, SCI balance sheet, SCI key metrics, SCI analyst forecast, SCI chart. See the SCI stock overview for the latest quote and news.

SCI AI stock analysis FAQ

What is Service Corporation International's dividend yield and payout history?

SCI has a dividend yield of 1.77% based on an annual forward dividend of $1.44 per share. The company has paid dividends for 22 consecutive years and maintains a conservative payout ratio of 36.1%.

How much debt does Service Corporation International carry?

As of June 30, 2026, SCI had $5.30B in total debt and $260.4M in cash and short-term investments, resulting in net debt of $5.04B. Its debt-to-equity ratio is 3.45.

How has SCI stock performed compared to the S&P 500?

Over the past year, SCI has gained 1.8% compared to a 16.8% gain for the S&P 500. Over a 5-year horizon, SCI is up 42.0%, trailing the broader index return of 83.0%.

What do analysts project for Service Corporation International's future earnings?

Analysts expect FY2026 EPS of $4.19, an 8.8% increase, on revenue of $4.47B. For FY2027, the consensus points to EPS of $4.58 on revenue of $4.63B.

More Consumer Cyclical AI stock analysis