Service Corporation International Common Stock (SCI)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable demand, honest accounting, and a price that leaves room for error. Service Corporation International provides deathcare products and services, including funeral homes and cemeteries, across the United States and Canada. Filed figures show fiscal 2025 revenue of $4.3 billion, net income of $542.6 million, and diluted EPS of $3.80. Fiscal 2023 revenue was $4.1 billion, net income $537.3 million, and diluted EPS $3.53, so growth has been modest. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, produced revenue of $1.1 billion, net income of $124.8 million, and diluted EPS of $0.90. At the close on 2026-10-13, the price was $77.83. FairStock calculations show a P/E of 20.32, P/B of 6.92, FCF yield of 5.7%, ROE of 34.71%, ROCE of 3.29%, D/E of 3.45, Altman Z-Score of 0.46, and a Graham Number of $31.14. That Graham margin of safety is -149.94%, meaning the market price is far above that conservative value. The Lynch category is SLOW GROWER, based on profit growth of 1.0% a year over five years and revenue growth of 4.2%. TTM free cash flow is $605.1 million, and the dividend yield is 1.85%. This is a steady, cash-generating service business, but high leverage and low ROCE reduce quality, and the valuation already assumes continued stability. I would want a wider margin of safety before calling it a bargain.

In plain English: Service Corporation International runs funeral homes and cemeteries in the U.S. and Canada. The business looks steady and produces cash, but profits are growing slowly and it carries a lot of debt. At $77.83 on 2026-10-13, the shares look expensive compared with the company's earnings and assets and a conservative value estimate.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer