| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 52 | 21.4x | 17.8x | Around median | |
Growth | 43 | 2.9% | 7.1% | Around median | |
Quality | 74 | 11.5% | 4.5% | Top tier | |
Safety | 38 | 4.3x | 2.6x | Bottom tier | |
Capital Return | 52 | 1.65% | 2.12% | Around median | |
Momentum | 59 | 4.7% | 2.9% | Around median | |
Sentiment | 45 | 5 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Service Corporation International operates a network of funeral homes and cemeteries, generating revenue from funeral services, cemetery property and services, as well as pre-need contracts funded by insurance or trusts. Growth is supported by a mix of core sales, large cemetery sales, and trust income, while some pre-need sales are deferred until the delivery of property or merchandise and services. SCI’s network includes more than 25 thousand employees, and during Q2 fiscal 2026 it added funeral and cemetery locations in California, Georgia, and Delaware through acquisitions totaling $15 million.
In Q2 fiscal 2026, SCI reported revenue of $1.1 billion and gross profit of $273.5 million, equivalent to a gross margin of approximately 24.9%, along with net income of $124.8 million and earnings per share of $0.90. Earnings per share increased from $0.88 in the comparable period, but performance across the two segments was mixed: comparable funeral revenue increased by approximately $5 million, or about 1%, while core funeral volumes declined 1.7%, whereas comparable cemetery revenue increased by approximately $23 million, or 5%, and its gross profit grew by $7 million, or 4%, at a margin of approximately 33%.
For the twelve months ended in fiscal 2026, revenue totaled $4.4 billion, gross profit $1.1 billion, net income $537.5 million, and earnings per share approximately $3.89. By comparison, SCI generated revenue of $4.3 billion, net income of $542.6 million, and earnings per share of $3.80 in fiscal 2025. These figures indicate limited growth in revenue and earnings per share, while net income remained below the fiscal 2025 level.
The analyst consensus rating for SCI shares is “Buy,” with a consensus target of $105; the highest and lowest targets are both equal at this level, providing a very narrow range for the available estimates. The target is approximately 15.4% above the 52-week range high of $90.99, while the full range extends from $68.41 to $90.99. No usable price-to-earnings ratio is available in the data, so the optimistic target should be weighed against slow funeral revenue growth, margin pressure, and the future normalization of cash taxes.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
SCI generated revenue of $1.1 billion, gross profit of $273.5 million, and net income of $124.8 million. Earnings per share were $0.90 compared with $0.88 in the comparable period. Comparable cemetery revenue increased 5%, while comparable funeral revenue increased by only approximately 1% as core funeral volumes declined 1.7%.
On July 30, 2026, management reaffirmed the adjusted earnings per share range of $4.10–$4.30, with a midpoint of $4.20. The outlook is based on 8% growth in pre-need cemetery sales and 6.6% growth in pre-need funeral sales in Q2 fiscal 2026, in addition to improved average revenue per service. Management also expects improved funeral and cemetery margins and double-digit earnings per share growth during the second half of fiscal 2026.
The funeral gross profit margin declined 130 basis points to 18.5% in Q2 fiscal 2026 because revenue growth remained below 2% in a business with high fixed costs. Recognized expenses increased due to the rise in insurance-funded contracts and the shift toward more level sales compensation, while a cancellation reserve pressured general agency revenue by approximately 200 basis points. Management expects the sales compensation comparison to stabilize during Q3 fiscal 2026 after the shift toward insurance funding reached a more stable stage in July 2026.
Automated analysis for informational purposes only — not investment advice.
SCI uses artificial intelligence to simulate customer conversations and provide sales counselors with scores, feedback, and personalized coaching, with the goal of improving the conversion rate of prospects into sales. It also uses the tablet-based Beacon tool and invests in connecting customers arriving from digital sites to the sales process more quickly. The technology investment rate is approximately $20–$25 million annually, with management confirming on July 30, 2026, that artificial intelligence sales training remains in its early stages.
SCI ended the quarter with liquidity of approximately $1.6 billion, including $260 million in cash and approximately $1.4 billion available under a long-term credit facility. It returned $172 million to shareholders during the quarter, consisting of $123 million to repurchase more than 1.5 million shares and approximately $50 million in dividends. From the beginning of fiscal 2026 through the end of the quarter, capital returned exceeded $360 million, including $266 million to repurchase 3.3 million shares and $96 million in dividends.
SCI manages trusts valued at more than $8 billion, including approximately $2.5 billion in the perpetual care trust, and management estimated fiscal 2026 trust income within an approximate range of $330 million to $360 million. Low-double-digit to mid-teen returns over the previous three years helped increase trust income and the average value of maturing contracts. Conversely, growth in pre-need cemetery sales resulted in a recognition rate of 88.8% in Q2 fiscal 2026 because some revenue will appear later upon the delivery of property or merchandise and services.
