📊 SCI Key Takeaways
Is Service Corp. International (SCI) a Good Investment?
SCI demonstrates strong operational cash generation ($254M FCF with 23.2% margin) and solid operating margins (22.2%), but financial health is strained by high leverage (3.26x D/E), dangerously low liquidity (0.57x current ratio), and flat net income growth despite 2.9% revenue expansion. The business model generates adequate cash to service debt, but structural leverage and anemic earnings growth limit upside potential.
Service Corp. International Key Strengths (SCI)
- Exceptional free cash flow generation ($253.9M) with FCF margin of 23.2%, providing substantial debt servicing capacity
- Strong operating margins (22.2%) and gross margins (26.1%) demonstrate efficient service delivery in funeral/cremation services
- Stable revenue base ($1.1B) with consistent operating cash flow ($333.8M), typical of defensive personal services sector
SCI Stock Risks: Service Corp. International Investment Risks
- Critical liquidity concern: current ratio of 0.57x and quick ratio of 0.52x indicate potential difficulty meeting short-term obligations
- Excessive financial leverage: debt/equity of 3.26x paired with interest coverage of only 3.8x leaves minimal margin for operational deterioration
- Growth stagnation: net income flat YoY despite 2.9% revenue growth suggests margin compression, with low ROA (0.7%) and ROE (8.6%) indicating poor capital efficiency
Key Metrics to Watch
- Current ratio trend—must improve above 0.80x to reduce refinancing risk
- Debt/Equity ratio—target reduction below 3.0x to improve financial flexibility
- Operating cash flow sustainability—ensure FCF remains >$250M to service debt obligations
Service Corp. International (SCI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
SCI Profit Margin, ROE & Profitability Analysis
SCI vs Services Sector: How Service Corp. International Compares
How Service Corp. International compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Service Corp. International Stock Overvalued? SCI Valuation Analysis 2026
Based on fundamental analysis, Service Corp. International shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Service Corp. International Balance Sheet: SCI Debt, Cash & Liquidity
SCI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Service Corp. International's revenue has shown modest growth of 4% over the 5-year period. The most recent EPS of $3.53 reflects profitable operations.
SCI Revenue Growth, EPS Growth & YoY Performance
SCI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.1B | $135.8M | $0.97 |
| Q3 2025 | $1.0B | $117.5M | $0.81 |
| Q2 2025 | $1.0B | $118.2M | $0.81 |
| Q1 2025 | $1.0B | $131.3M | $0.89 |
| Q3 2024 | $1.0B | $117.8M | $0.80 |
| Q2 2024 | $1.0B | $118.2M | $0.81 |
| Q1 2024 | $1.0B | $131.3M | $0.89 |
| Q1 2023 | $977.7M | $120.9M | $0.76 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Service Corp. International Dividends, Buybacks & Capital Allocation
SCI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Service Corp. International (CIK: 0000089089)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778699089.xml | View → |
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778687103.xml | View → |
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778686835.xml | View → |
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778686603.xml | View → |
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778686143.xml | View → |
❓ Frequently Asked Questions about SCI
What is the AI rating for SCI?
Service Corp. International (SCI) has an AI grade of B with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SCI's key strengths?
Claude: Exceptional free cash flow generation ($253.9M) with FCF margin of 23.2%, providing substantial debt servicing capacity. Strong operating margins (22.2%) and gross margins (26.1%) demonstrate efficient service delivery in funeral/cremation services.
What are the risks of investing in SCI?
Claude: Critical liquidity concern: current ratio of 0.57x and quick ratio of 0.52x indicate potential difficulty meeting short-term obligations. Excessive financial leverage: debt/equity of 3.26x paired with interest coverage of only 3.8x leaves minimal margin for operational deterioration.
What is SCI's revenue and growth?
Service Corp. International reported revenue of $1.1B.
Does SCI pay dividends?
Service Corp. International pays dividends, with $47.1M distributed to shareholders in the trailing twelve months.
Where can I find SCI SEC filings?
Official SEC filings for Service Corp. International (CIK: 0000089089) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SCI's EPS?
Service Corp. International has a diluted EPS of $0.97.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SCI's fundamental grade?
Based on our AI fundamental analysis in May 2026, Service Corp. International has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SCI stock overvalued or undervalued?
Valuation metrics for SCI: ROE of 8.6% (sector avg: 16%), net margin of 12.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is SCI's AI grade for 2026?
Our dual AI analysis gives Service Corp. International a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is SCI's free cash flow?
Service Corp. International's operating cash flow is $333.8M, with capital expenditures of $79.9M. FCF margin is 23.2%.
How does SCI compare to other Services stocks?
Vs Services sector averages: Net margin 12.4% (avg: 10%), ROE 8.6% (avg: 16%), current ratio 0.57 (avg: 1.5).
Is Service Corp. International carrying too much debt?
SCI has a debt-to-equity ratio of 3.26x, which is above the Services sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.