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1. Company Snapshot

1.a. Company Description

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 operations comprise funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other businesses.


The company also provides professional services related to funerals and cremations, including the use of funeral facilities and motor vehicles; arranging and directing services; and removal, preparation, embalming, cremation, memorialization, and travel protection, as well as catering services.In addition, it offers funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, online and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise.Further, the company's cemeteries provide cemetery property interment rights, such as developed lots, lawn crypts, mausoleum spaces, niches, and other cremation memorialization and interment options; and sells cemetery merchandise and services, including memorial markers and bases, outer burial containers, flowers and floral placements, graveside services, merchandise installations, and interments, as well as offers preneed cemetery merchandise and services.


Service Corporation International offers its products and services under the Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, Funeraria del Angel, Making Everlasting Memories, Neptune Society, and Trident Society brands.As of December 31, 2021, it owned and operated 1,471 funeral service locations; and 488 cemeteries, including 299 funeral service/cemetery combination locations covering 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico.The company was incorporated in 1962 and is headquartered in Houston, Texas.

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1.b. Last Insights on SCI

Breaking News: Service Corporation International reported Q4 earnings on February 12, 2026, with quarterly earnings of $1.14 per share, meeting estimates. This represents a year-over-year increase from $1.06 per share. Revenues rose 2% driven by gains in funeral and cemetery services. The company's 2026 outlook signals steady earnings growth. Baillie Gifford recently reduced its stake in SCI. Zacks Consensus Estimate was met, implying stable performance. Analysts at Zacks recommend a hold.

1.c. Company Highlights

2. SCI's Q4 2025 Earnings: A Strong Finish to the Year

Service Corporation International (SCI) reported adjusted earnings per share of $1.14 for Q4 2025, an 8% increase compared to $1.06 in the prior year, driven by moderate revenue and gross profit growth in both funeral and cemetery segments. The company's adjusted EPS for the full year 2025 was $3.85, a 9% increase compared to $3.53 in 2024. Revenue growth was driven by a 3.2% increase in core average revenue per service in the funeral segment and a 4% growth in preneed cemetery sales production.

Publication Date: Feb -15

📋 Highlights
  • Adjusted EPS Growth:: Q4 adjusted EPS rose 8% to $1.14, with annual EPS up 9% to $3.85, driven by revenue and gross profit gains in both segments.
  • Funeral Revenue Expansion:: Comparable core funeral revenue increased 1% ($6M) due to 3.2% growth in average revenue per service; non-funeral home sales rose 11% ($3M).
  • Cemetery Profit Margin Improvement:: Cemetery gross profit grew 3% ($5M) with a 70bps margin improvement, despite 1% revenue increase.
  • Strong Cash Flow:: Generated $213M in Q4 operating cash flow, exceeding guidance; 2026 guidance set at $1.0–1.06B, with $325M in maintenance CapEx and $75–125M in acquisitions.
  • Preneed Sales Momentum:: Preneed funeral production rose 12% ($25M) and cemetery sales grew 4%, with 2026 growth expected in low to mid-single digits for both segments.

Segment Performance

In the funeral segment, total comparable funeral revenues increased by $3 million or less than 1% over the prior year quarter. The growth was primarily driven by a 3.2% increase in core average revenue per service. The cemetery segment saw a 1% increase in comparable cemetery revenue, driven by an $8 million increase in other revenue. Preneed cemetery sales production grew by about 4% for the full year 2025.

Outlook for 2026

SCI expects flat to slightly down funeral volume in 2026 compared to 2025, with average revenue per case growing at inflationary rates. The company anticipates preneed funeral production to grow in the low to mid-single-digit percentage range. For the cemetery segment, SCI expects to grow preneed cemetery sales production in the low to mid-single-digit percentage range, resulting in cemetery revenue growth of about 2% to 5%.

Cash Flow and Capital Allocation

SCI generated strong adjusted operating cash flow of $213 million in Q4 2025, exceeding the high end of its guidance range. The company expects adjusted operating cash flow to be around $1.0 billion to $1.06 billion in 2026. SCI plans to invest in maintenance CapEx, acquisitions, and growth capital projects, while maintaining a disciplined approach to returning capital to shareholders through dividends and share repurchases.

Valuation

SCI's current valuation multiples are: P/E Ratio of 17.27, P/B Ratio of 6.81, and EV/EBITDA of 13.83. Analysts estimate revenue growth of 3.6% for the next year. The actual EPS of $1.14 beat estimates of $1.14. The company's strong cash flow generation and disciplined capital allocation support its valuation.

3. NewsRoom

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Service Corporation International (NYSE:SCI) Receives Average Rating of “Buy” from Brokerages

Feb -14

Source: defenseworld.net

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Service Corporation International (SCI) Q4 2025 Earnings Call Transcript

Feb -12

Source: seekingalpha.com

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Service Corporation Q4 Earnings Meet Estimates, Revenues Rise 2%

Feb -12

Source: zacks.com

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Service Corp. (SCI) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -12

Source: zacks.com

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Baillie Gifford Reduces Stake in Service Corp International

Feb -12

Source: gurufocus.com

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Service Corp. (SCI) Meets Q4 Earnings Estimates

Feb -12

Source: zacks.com

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SERVICE CORPORATION INTERNATIONAL ANNOUNCES FOURTH QUARTER 2025 FINANCIAL RESULTS AND PROVIDES 2026 GUIDANCE

Feb -11

Source: prnewswire.com

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What Analyst Projections for Key Metrics Reveal About Service Corp. (SCI) Q4 Earnings

Feb -10

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.94%)

6. Segments

Funeral

Expected Growth: 2.5%

Service Corporation International's funeral segment growth is driven by an aging population, increasing death rates, and a shift towards premium funeral services. Additionally, the company's strategic acquisitions and cost savings initiatives contribute to its 2.5% growth rate.

Cemetery

Expected Growth: 3.5%

The 3.5% growth in Cemetery segment of Service Corporation International is driven by increasing demand for funeral services, aging population, and rising death rates. Additionally, the company's strategic acquisitions, expanded pre-need sales, and cost savings initiatives contribute to the growth. Furthermore, the shift towards cremation and memorialization services also supports the segment's growth.

7. Detailed Products

Funeral Services

Service Corporation International provides traditional funeral services, including visitations, ceremonies, and burials, to help families honor their loved ones.

Cremation Services

The company offers cremation services, providing families with a dignified and respectful way to say goodbye to their loved ones.

Cemetery Properties

Service Corporation International owns and operates cemetery properties, offering a peaceful and serene environment for families to visit and remember their loved ones.

Pre-Planning Services

The company offers pre-planning services, allowing individuals to plan and pay for their funeral services in advance, providing peace of mind for themselves and their families.

Memorialization Products

Service Corporation International offers a range of memorialization products, including headstones, markers, and urns, to help families honor and remember their loved ones.

8. Service Corporation International's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Service Corporation International is moderate due to the presence of alternative funeral and cemetery services, but the company's strong brand recognition and diversified services mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the emotional and often urgent nature of funeral and cemetery services, making it difficult for customers to negotiate prices or switch providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale and diversified operations, allowing it to negotiate favorable prices with suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the funeral and cemetery industry, including regulatory hurdles and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry is moderate due to the presence of several large players in the industry, but Service Corporation International's strong brand recognition and diversified services help to mitigate this threat.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 75.71%
Debt Cost 6.57%
Equity Weight 24.29%
Equity Cost 8.00%
WACC 6.92%
Leverage 311.62%

11. Quality Control: Service Corporation International passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
H&R Block

A-Score: 6.3/10

Value: 7.8

Growth: 6.0

Quality: 6.7

Yield: 7.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Rollins

A-Score: 5.8/10

Value: 0.5

Growth: 7.1

Quality: 7.7

Yield: 2.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
SCI

A-Score: 5.5/10

Value: 3.7

Growth: 6.4

Quality: 4.7

Yield: 4.0

Momentum: 5.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
KB Home

A-Score: 4.9/10

Value: 7.8

Growth: 4.6

Quality: 5.3

Yield: 3.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Frontdoor

A-Score: 4.7/10

Value: 4.8

Growth: 6.6

Quality: 6.8

Yield: 0.0

Momentum: 4.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Bright Horizons Family Solutions

A-Score: 4.0/10

Value: 3.1

Growth: 5.9

Quality: 5.0

Yield: 0.0

Momentum: 4.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

79.66$

Current Price

79.66$

Potential

-0.00%

Expected Cash-Flows